Tanzania’s cosmetics industry prospects

July 24, 2016

As a bloke, I like to see beaus well dressed and with presentable make ups and not to see rainbows type of faces.Tanzania as a country hasn’t been left behind when it comes to adoption of latest trends in fashion and cosmetics.Tanzania’s beauty industry, cosmetics in particular, has a bright future as women, no matter whether they live in big cities or small villages, will always need a fully loaded make up pouch in their bag.Research conducted by an American cosmetic company targeting African market, has shown that sales of cosmetics in Tanzania’€™s urban areas for the first half of 2016 increased by 13 percent to US$3.8 million compared to the same period in 2015.Cosmetics sales in rural areas of mainland also jumped by 32 percent year on year in the first half of the year. This survey shows that the rural areas in mainland Tanzania have huge potential and that producers have great opportunities to maximise it,’€ said one of the researchers who was involved in the study.The growth in urban cosmetics consumer spending is driven by the increase in spending in terms of brands. Urban residents tended to be more adventurous and sophisticated, so they tried different brands, said the researchers during our exchanges on the survey’€™s results.The proportion of people in urban areas like Arusha, Moshi, Mwanza, Dar Es Salaam, Mbeya who used three brands of cosmetics rose slightly from 9.8 percent in the first six months in 2016 to 12.8 percent in the same period this year, the survey said.

On the other hand, many people in Tanzania’s rural areas who had bought three brands last year had now reduced purchases to two brands or fewer because of higher prices compared to those in urban areas.The prices of cosmetics in rural areas rose by 15.3 percent, led by the price of foundation, which jumped 23 percent, according to Tanzania’€™s data. The data also showed, however, that spending in rural areas had increased alongside the price hike. On the bright side, the rural buyers are willing to keep up with the price increases and buy cosmetics, because they perceive them as necessary purchases,’ one of the study authors told your blogger.In the survey, Tanzania recorded the cosmetics expenditure of 2.3 million households in cities in Dar Es Salaam, Mbeya, KIlimanjaro, Arusha and Mwanza regions and 1 million households in rural areas in Dar Es Salaam and Coastal region only. The survey also recorded the items, the quantity and the outlets. The biggest increases in cosmetics sales were in urban rather than rural areas as people in rural areas were somewhat left behind, said one of the researchers. But the trend in rural areas follows urban areas,’€ he added.For rural areas, products like lipstick and eye make-up increased by 39 percent and 28 percent respectively. But in urban areas, lipstick and eye make-up were regarded as basic items, thus the up and coming products were beyond lip products€, said the researcher. The growth of other decorative cosmetics, apart from eyes, lips, face and nails, jumped by 71 percent in urban areas.The study also revealed that the consumption of face care products was higher than cosmetics in both areas, meaning more opportunities to entice customers. If they already use face care products, it will be easier for them to also use make up,’€ he said.In urban areas face care consumption was 11 percent higher. Meanwhile, the consumption of face care in Tanzania’€™s mainland rural areas was 25 percent higher.Overall, those in the cosmetic business can look forward to brighter business opportunities ahead.

Contador Harrison