The Promising Opportunity with even Greater Potential for Expansion
Africa will be home to some of the world’s fastest-growing economies in the coming years. Kenya ranks in the top 10 with an expected average annual growth rate of just over 6% until 2030. The continent’s consumer spending will also grow faster than the global average in the years to come. Much of the increase in Africa’s consumer expenditure will come from rapidly growing smaller markets, such as Kenya, which is expected to record consumer spending CAGRs of 8% over the 2017–2030 forecast period.
The beauty and cosmetics industry has become Kenya’s new hub of investment that is pulling in big money to establish new lines of business and to snap up successful enterprises through multi-million-shilling acquisition deals. Growing technology in the region provides new ways of reaching consumers. Africans are increasingly connected, with high mobile penetration—reaching one billion in 2017. This offers opportunities in various consumer industries, and will in particular benefit the beauty, personal care and cosmetics industries.
The key drivers of the Kenyan economy include a strong population growth, a growing number of people belonging to the middle-class and an educated workforce. Increased growth of the beauty and personal care market in Kenya, combined with the fact that Kenya is recognized as the sales and distribution hub for the larger East African market, has attracted many international brands.
In 2012, the cosmetics sector in Sub-Saharan Africa’s beauty and personal care market was estimated at €6.93 billion and it currently increases between 8% and 10% per year against a global market growth rate of close to 4%. In 2018, Kenya’s beauty and cosmetics industry was totalling more than $320 million.
Kenya also benefits from a dynamic private sector in which Kenya seems to have become the regional leader. Therefore, Kenya presents promising opportunities in the beauty and cosmetics sector by offering avenues for greater regional expansion through its well-developed infrastructure.
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