The Hair Care Market Is Bouncing Back in Africa

Looking good is back on the agenda, covid-19 restrictions are being lifted in Africa and people are returning to work and socializing.

While the hair care market in Africa was severely impacted by the covid-19 pandemic, daily hair care remains important to the African consumer; and as a result, it has continued to grow.

According to Technavio, African hair care sales will grow 6.35% a year through 2026 to reach $994 billion. As I wrote in my column last year, some factors driving change at the height of the covid-19 pandemic were due to restrictions. The rise of do-it-yourself at-home hair care is now influenced by a relaxation in lockdowns and pandemic restrictions. Salons are open and professional hair care and services are on the rise.

The competitive environment is changing, and those changes are fuelled by the consumer’s evolving lifestyle that takes a healthier and more sustainable approach to life and what to consume. There is now a conscious focus on a healthier, more active and conscious lifestyle. People are eating better, exercising more and prefer natural and organic alternatives. According to Euromonitor International’s report on hair care in the Middle East and Africa, awareness about harmful substances and use of exotic oils are pushing consumers to prefer natural and free-from options.

The report covers major hair care categories, including 2-in-1 products, shampoo, hair colorants, conditioners, treatments, hair loss products, perms and relaxants, salon professional hair care and hairstyling products. Markets covered are South Africa, Nigeria, Kenya and Rest of Africa. Euromonitor concludes that conditioners and treatments are the fastest growing categories.

A Natural Online Advantage

African consumers are encouraged to embrace and celebrate their natural afro-textured hair. The natural hair movement helped transform the market. In response, brands and retailers offer more products targeted to natural afro hair care products.

There are 281 million online shoppers in Africa and sales rose nearly 53%, according to the Statistica report on e-commerce in Africa. Key large e-tail players on the continent such as Jumia, Takealot.com and Konga.com are leading the pack. Together, they welcome approximately 393 million website visitors.

Influence through social media and blogging, and rising demand for hair extensions and wigs will lead to sizable demand in the market, according to Technavio. Entrepreneurs agree. Ifeamaka Umeike of Natural Nigerian says her online presence and social media was pivotal to the launch of her business and she used it to drive influence and growth.

“We launched products in 2011, one year after launching the blog,” explained Umeike. “We were reliant on our blog audience and a Facebook group with approximately 10,000 followers and 3,000 followers on Twitter at the time.”

The market is expanding for other reasons, too. More female entrepreneurs with consumer-centric hair care brands are responding to the African customers’ demands for healthy hair. Technavio notes more startups from regional women entrepreneurs will be a prime driver of growth during the next few years.

Multinationals like Amka Products, Combe, Henkel, Johnson & Johnson, L’Oréal, Revlon, Shiseido, Estée Lauder, Procter & Gamble and Unilever, now compete with local players who bring consumer centric products that often cost less than big brands.

According to Euromonitor researchers, there is an increasing trend toward smaller manufacturers, especially in Africa, as consumers believe multinationals fail to offer tailor-made products. The perception that smaller players use natural products in a more sustainable way also played to their advantage.

Inflation factors

Global inflation hit 7.4% this year and inflation is impacting key African hair care markets, as well. Inflation in South Africa is 5.7%, Nigeria is 16.1% and Kenya, 7.2%. 

“There is a demand for natural hair care, but too often the African market is left with imported products at a high price which the average person is unable to afford,” noted Niyati Patel, co-founder of Kenyan hair care brand Marini Naturals, when asked about the reasons for starting the brand.

For countries like Nigeria, with an inflation rate that is more than double that of the global index, the impact of this surge in inflation has been felt alongside other macro-economic factors.

“Volume growth was much more muted, as the devaluation of the Naira and high inflation, made imported brands in particular more expensive and also reduced consumer purchasing power,” according to Euromonitor International’s report, Hair Care in Nigeria.

While products are still mainly distributed and purchased in hypermarkets, pharmacies and supermarkets, their role in acquiring significant market share is crucial as the landscape of retail in Africa is evolving from micro businesses to a modern retail environment online and offline. This leaves opportunity for brands and retailers alike in the African hair care market because of the growing population.

The African market is mass brand-led; but rising disposable income means that there is a need and demand for premium products, quality and personalized hair care products.

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Zeze Oriaikhi-Sao
Malée, Founder
office@maleeonline.com
 
Zeze Oriaikhi-Sao is an entrepreneur, influential speaker, sought-after brand consultant and freelance columnist with a focus on Innovation, sustainability and leadership in the cosmetics, luxury goods and start-up industries. As the founder of Malée, Africa’s first global luxury fragrance and body care brand, an advisory board member at Innocos, the world beauty innovations summit, Oriaikhi-Sao has established herself as a leader in the African-made luxury goods market. She has been featured on CNN, The Telegraph and The Daily Mail. She hosts the podcast Third Culture Africans, and inspires a vast audience with entrepreneurial and lifestyle Insights at zezeonline.