Report Overview

South Africa Cosmetics Market - Industry Trends & Forecast Report, 2029

South Africa Cosmetics Market size was estimated at USD 2.15 billion in 2022. During the forecast period between 2023 and 2029, the size of South Africa Cosmetics Market is projected to grow at a CAGR of 5.59% reaching a value of USD 2.98 billion by 2029. Major growth drivers for the South Africa Cosmetics Market include an increasing population, escalating urbanization, and rising in per capita spending on beauty products. The demand for skincare products is experiencing a surge, propelled by the increasing availability of affordable options and the expanding working population in the country. For instance, Statistics South Africa reveals a growing trend, indicating that in the first quarter of 2022, the working-age female population in South Africa increased to almost 20.2 million, while the working-age male population reached around 19.8 million. This reflects a year-on-year growth of 1.4% and 1.5% compared to the first quarter of 2021. Also, the augmentation of the quality of life, the rising positive impact of skincare on self-esteem and social interactions, and the progressively growing consumer preference for premium and luxury brands are anticipated to fuel market growth throughout the forecast period. The demand for men's grooming products is experiencing a significant increase, driven by a rising preference for multifunctional products. Also, the growing consumer inclination towards natural and organic personal care and cosmetics products, spurred by the desire to avoid specific ingredients like parabens, is expected to further boost the growth of organic cosmetic products during the forecast period.

South Africa Cosmetics Market – Overview

The South Africa Cosmetics Market refers to the industry that encompasses the production, distribution, and sale of cosmetic and personal care products within the Republic of South Africa. This market includes a wide range of items designed for personal grooming, skincare, haircare, fragrance, and overall enhancement of physical appearance. Cosmetics in this context encompass a diverse array of products, such as skincare creams, makeup, perfumes, haircare products, toiletries, and other beauty-enhancing substances. The South Africa Cosmetics Market is influenced by consumer preferences, trends, cultural influences, and economic conditions. The market is characterized by the presence of various local and international brands catering to the diverse needs and preferences of the South African population. The South Africa Cosmetics Market is subject to regulatory standards and may reflect shifts in consumer behavior, such as an increasing demand for natural and organic products or a growing interest in specific beauty trends.

South Africa Cosmetics Market

Growth Drivers

Growing Beauty Consciousness

Increasingly, South African consumers are prioritizing elevated living standards, spurred by a proliferation of skincare options and a burgeoning urban population. Urban dwellers, exposed to heightened pollution, are turning to skincare products to shield their skin. The market has expanded in value sales, facilitated by the widespread availability of these products through diverse channels like specialty shops, pharmacies, and beauty salons. Notably, the male demographic's growing focus on skincare and grooming for enhanced physical appearance contributes to substantial growth prospects. This grooming trend aligns with heightened household spending on skincare in South Africa, prompting market players to introduce new products to meet demand. Social media amplifies awareness regarding skincare's significance, aligning with global beauty trends and boosting consumer demand. Rising consumer awareness, coupled with increased purchasing power, is propelling demand for natural ingredient-based skincare products. Domestic manufacturers like Marula are leveraging online platforms such as Lulu to efficiently reach consumers, fostering expected market growth.

Restraints

Environmental Concerns

Environmental concerns pose significant constraints on growth of the South African Cosmetics Market. The market is challenged by growing awareness of environmental issues, prompting consumers to seek sustainable and eco-friendly beauty products. This shift in consumer preferences is pressuring cosmetics manufacturers to adopt more environmentally friendly practices, from sourcing raw materials to packaging. Regulations and consumer activism related to environmental conservation are influencing the choices and behaviors of both producers and consumers in the South African cosmetics sector, urging a more sustainable approach throughout the product life cycle.

Impact of COVID-19 on South Africa Cosmetics Market

Covid-19 pandemic had a mixed impact on the South Africa Cosmetics Market, with disruptions in production and supply chains. South Africa, a major cosmetics market, declared a national state of disaster just ten days after reporting its first case. During lockdowns, non-essential categories like color cosmetics and fragrances faced production halts, while essential products continued with reduced workforces. L'Oréal repurposed its facility to produce hand sanitizers, aligning with relief efforts. Lockdowns led to operational shutdowns, impacting services, retail, and supply chains. The pandemic also highlighted the importance of technology, with online platforms adapting to offer essential items. Small, digitally native brands focused on direct-to-consumer strategies, emphasizing content around wellness during lockdowns.

South Africa Cosmetics Market

Segmental Coverage

South Africa Cosmetics Market – By Category

Based on category, the South Africa Cosmetics Market is divided into Skin Care, Hair Care, Make-up, and Fragrances segments. The skin care segment holds the highest share in the South Africa Cosmetics Market by category. Growing awareness among consumers about the significance of skincare, particularly in the context of maintaining healthy and radiant skin, has fueled an increasing demand for skincare products. The expanding urban population, exposed to various pollutants detrimental to the skin, has driven a surge in the use of skincare items for protection and nourishment. The accessibility and availability of skincare products through diverse sales channels, including specialty shops, pharmacies, and beauty salons, contribute significantly to the segment's dominance. Shifting consumer preferences, especially a growing emphasis on skincare and grooming among males, have further propelled the market share of the skincare category. Continuous product innovation, spurred by market players, plays a role, as does the influence of social media in disseminating beauty trends. The trend towards natural ingredients and a broader focus on health and wellness have heightened the demand for skincare products, cementing the skincare segment's preeminence in the market.

South Africa Cosmetics Market – By Gender

Based on gender, the South Africa Cosmetics Market is divided into Women, Men, and Unisex segments. The women segment holds the highest share in the South Africa Cosmetics Market and is expected to maintain its dominance during the forecast period. There is a longstanding cultural emphasis on beauty and grooming for women. Also, women are often the primary consumers of a wide range of cosmetics, including skincare, makeup, and personal care products. The evolving societal norms have also led to an increasing acceptance of beauty and self-care practices among women.

South Africa Cosmetics Market – By Distribution Channel

Based on distribution channel, the South Africa Cosmetics Market is divided into Hypermarket/Supermarkets, Specialty Stores, and Online Sales Channels segments. The hypermarket/supermarket segment holds the highest share in the South Africa Cosmetics Market by distribution channel. Hypermarkets and supermarkets are retail establishments that concentrate on offering a specific range of products and related items. These stores maintain a significant variety of premium-priced products within their specialized product category. Manufacturers consistently strive to enhance the visibility of their products on store shelves, with a particular focus on hypermarkets and supermarkets. Consequently, a diverse array of cosmetic products is accessible in these retail outlets. Furthermore, these stores offer substantial discounts, drawing in a growing number of customers and thereby contributing to the expansion of the cosmetics market.

Competitive Landscape

Major players operating in the South Africa Cosmetics Market include Cosmetix, L'Oreal SA, The Estée Lauder Companies Inc., Adcock Ingram (Lulu & Marula), Revlon, AVI Limited (Indigo Brands Pty Ltd), Natura & Co, Genome Cosmetics LLC (ObeyYourBody), and Beiersdorf Consumer Products (Pty) Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2023 - Bayer South Africa’s Consumer Health division for South East Africa launched Bepanthen Derma, a new skincare range for dry and sensitive skin, in South Africa.

Scope of the Report

By Category

• Skin Care

• Hair Care

• Make-up

• Fragrances

By Gender

• Women

• Men

• Unisex

By Distribution Channel

• Hypermarkets/Supermarkets

• Specialty Stores

• Online Sales Channels

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  South Africa Cosmetics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing beauty consciousness
         2. Innovation in product formulations
      2. Restraints
         1. Regulatory compliance
         2. Environmental concerns
      3. Opportunities
         1. E-commerce growth
         2. Natural and organic products
      4. Challenges
         1. Intense competition
         2. Changing consumer preferences
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  South Africa Cosmetics Market Overview
   1. Market Category & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Category
         1. Skin Care
         2. Hair Care
         3. Make-up
         4. Fragrances
         5. Others
      2. By Gender
         1. Women
         2. Men
         3. Unisex
      3. By Distribution Channel
         1. Hypermarkets/Supermarkets
         2. Specialty Stores
         3. Online Sales Channels
         4. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Cosmetics Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on South Africa Cosmetics Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Cosmetix
   2. L'Oreal SA
   3. The Estée Lauder Companies Inc.
   4. Adcock Ingram (Lulu & Marula)
   5. Revlon
   6. AVI Limited (Indigo Brands Pty Ltd)
   7. Natura & Co
   8. Genome Cosmetics LLC (ObeyYourBody)
   9. Beiersdorf Consumer Products (Pty) Ltd
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Distribution Channel
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       South Africa Cosmetics Segmentation

Figure 2       South Africa Cosmetics Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Cosmetics Market Category, By Value (USD Billion), 2019–2029

Figure 5       South Africa Cosmetics Market Share, By Category, By Value, 2019–2029

Figure 6       South Africa Cosmetics Market Share, By Gender, By Value, 2019–2029

Figure 7       South Africa Cosmetics Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1        South Africa Cosmetics Market Category, By Value (USD Billion), 2019–2029

Table 2        South Africa Cosmetics Market Share, By Category, By Value, 2019–2029

Table 3        South Africa Cosmetics Market Share, By Gender, By Value, 2019–2029

Table 4        South Africa Cosmetics Market Share, By Distribution Channel, By Value, 2019–2029

Table 5        Cosmetix Company Overview

Table 6        Cosmetix Financial Overview

Table 7        L'Oreal SA Company Overview

Table 8        L'Oreal SA Financial Overview

Table 9        The Estée Lauder Companies Inc. Company Overview

Table 10      The Estée Lauder Companies Inc. Financial Overview

Table 11      Adcock Ingram (Lulu & Marula) Company Overview

Table 12      Adcock Ingram (Lulu & Marula) Financial Overview

Table 13      Revlon Company Overview

Table 14      Revlon Financial Overview

Table 15      AVI Limited (Indigo Brands Pty Ltd) Company Overview

Table 16      AVI Limited (Indigo Brands Pty Ltd) Financial Overview

Table 17      Natura & Co Company Overview

Table 18      Natura & Co Financial Overview

Table 19      Genome Cosmetics LLC (ObeyYourBody) Company Overview

Table 20      Genome Cosmetics LLC (ObeyYourBody) Financial Overview

Table 21      Beiersdorf Consumer Products (Pty) Ltd Company Overview

Table 22      Beiersdorf Consumer Products (Pty) Ltd Financial Overview