With a €206bn GDP in 2012 and an 8% annual growth rate over the period 2010-2017, Nigeria is among the fastest growing markets in Africa. The IMF anticipates sub-Saharan Africa's growth in 2010-2015 to be in the middle of the BRIC countries - faster than Brazil and Russia (and the potential is huge). The beauty and personal care sales were estimated to be worth €1,57Bn in 2012, up by 12% over 2011, and are estimated to reach €2,5Bn in 2017 according to Euro-monitor. With such estimated sales, Nigeria is considered as the African rising star for the beauty market.
This growth is supported by a strong consumer base. With a population of 167 million people in 2012 amongst which 62% are under 25 according to Euro-monitor, it is expected to become the 3rd largest growth in the world by 2050, thus representing a golden consumption base with over 380 million people. With a large share of young adults, especially women, sales of task-specific products like shower gel, perfume or deodorants are boosted. Growth is also fueled by important advertising spending and a retail network that is becoming structured.
E-Commerce will also be a growth lever in a country where internet usage is increasing and where e-Retailers are starting their business. Actors like Konga and Jumia, Amazon-style websites, are already operating orders on a nation-wide basis, with almost a thousand orders per day. Thanks to a wide-range product offer – partly thanks to a marketplace offer – and targeted services to Nigerian consumers like cash payment upon delivery, or 5-days delivery, the online business is expected to develop rapidly and be fueled by the emerging middle class.