The African beauty industry is experiencing rapid growth, driven by a youthful population, increasing urbanization, and a burgeoning middle class. This market, currently valued at $65.93 billion with a 5.99% CAGR, encompasses a wide range of products, from skincare and haircare to cosmetics and fragrances. “There are so many opportunities to explore within Africa, as the continent continues to offer newer and fresher markets for brands here to explore,” Global Beauty Strategist Valerie Lawson tells BeautyMatter. Lawson is the founder and CEO of CVL Beauty, a beauty brand that specializes in creating functional beauty tools and accessories for makeup artists. She’s also an educator and lecturer, and has recently completed a project focused on Ghana, in partnership with MasterCard Foundation.
However, despite its potential, the African beauty industry is not immune to the economic challenges that many countries on the continent face. Heavyweight countries like Nigeria, for example, continue to experience financial fluctuations and economic instability which present significant hurdles for beauty brands operating in Africa. One of the most pressing issues affecting the African economy, and therefore brand founders, is the high rate of inflation. For instance, according to Trading Economics, Nigeria’s inflation rate accelerated to 34.19% in June 2024, amid the removal of fuel subsidies and a weakening local currency. Additionally, many African beauty hotbeds like Ghana and Ethiopia are among the top 10 African countries that struggle with high unemployment rates, fluctuating exchange rates, and political instability. These factors contribute to reduced consumer spending and increased operational costs for businesses, including those in the beauty industry.
Despite these economic challenges, the spending power in the fashion, accessories and beauty sector remains relatively resilient. Trading Economics recorded that prices eased a bit (16.4% vs 16.6%). “Beauty and personal care products are often seen as essential, and the cultural emphasis on appearance and grooming drives consistent demand,” Lawson says. To sustain growth and profitability, though, beauty brands need to employ strategies that mitigate the risks associated with economic instability. “One effective strategy for beauty brands is to localize their products and supply chains. By sourcing raw materials locally and producing products within the continent, brands can reduce dependency on imports, which are subject to exchange rate fluctuations and international market volatility. This approach not only cuts costs but also supports local economies and communities,” Lawson says.
Many brands in Africa are implementing flexible pricing strategies that can help them adapt to changing economic conditions. During periods of high inflation or economic downturns, brands can offer smaller, more affordable product sizes or create budget-friendly lines that maintain quality while being accessible to a broader audience. Brands are also diversifying their product offerings to help mitigate risks as this range creates an opportunity for further purchase from consumers. As they expand their range of products, they’re ensuring steady revenue streams even during economic downturns. This diversification caters to a wider range of consumer needs and provides a buffer against market volatility. As beauty consultant and branding expert Yemi Ajibade says, that miniaturization of products “gives room for the introduction of newer customers, in addition to the already existing ones.” This approach ensures that consumers can continue purchasing beauty products without straining their finances.
