Kola Farayola, Commercial Manager, First Aluminium Nigeria Plc, on Friday said that premium cosmetics packaging revenue might appreciate to N48.6 billion by 2017.

Farayola made this disclosure while speaking on the sidelines of the ongoing Packaging and Labelling Exhibition (PROPAK) in Lagos. Quoting Euromonitor, a UK-based market research company, Farayola said that the cosmetics and personal care products packaging has grown from N22.8 billion in 2010 and N32.4 billion in 2012.

He said that the growth indicates that there is a high market for cosmetics consumption due to the changes in taste and fashion, especially by Nigerian and African women.

He said that the premium packaging of cosmetics which largely included the use of high quality aluminium products like tubes would concurrently mean an improvement in aluminium manufacturing in the country.

“The Beauty and Personal Care Products in Nigeria is the second largest in Africa, after that of South Africa which is the first.

“A research conducted by Euromonitor states that Home, Beauty and Personal Care Products Market in Africa was valued at $12.9 billion in 2011, making it one of the fastest growing sub-sectors in Africa.

“What we have had mostly in Nigeria is the mass production technique where local manufacturers, especially small scale produce low quality products with no manufacturing and expiry dates, and so on.

“When some of them are interrogated, they tell you that Nigerians prefer cheap products, which invariably means they are not really concerned if it is of good quality or not.

“But the good news is that the taste of most Nigerians is changing, more people, especially women are getting conscious of the quality of beauty products they use.

“Even international brands like L’Oreal, Estee Lauder and Clinique, which are international brands, tapping into this market.

“The packaging industry as reported in a recent research is growing at a 12 per cent rate annually, with food and cosmetics products taking a major part of the growth.

“Obviously this tells us that Nigerians now prefer premium packaged products to the mass produced ones, and this should mean a turn for the better for local manufacturers who are alert,” Farayola said.

He said that the growth in the sub-sector was characterised chiefly by steady economic growth and a growing population, where 62 per cent of Nigerians are 25 years and below.

According to him, other factors are education and more exposure, new desire to acquire expensive products, online shopping platforms, increasing number of women in formal employment and a growing middle class.

He further advised local manufacturers to take advantage of the current growth rate and prediction to put the right requirements together for maximum returns.

“What does this growth mean? It means SMEs (small and medium enterprises) should seek ways to start producing premium quality cosmetics, as mass or low quality products are going down the drain.

“Worthy of note is compliance with international packaging regulations, especially the European Union rules which states that every food, drug or cosmetics product must state a maximum time of use after opening.

“This is something we do not have in this part of the country; most people keep using a body cream for up to one year after opening, not minding if it has become harmful.

“Also, consideration needs to be given to the quality and type of packaging materials depending on the shelf life, chemical content and use of such product,’’ he said.

Culled from Businessday 09/05/2014