The Evolution of South Africa’s Cosmetics Industry: Past Growth and Future Opportunities

South Africa’s cosmetics industry has grown significantly over the past few decades and evolved from a market once dominated by international brands into a vibrant sector with dynamic local brands. The WOW report on South Africa’s cosmetics industry states that the cosmetics and personal care products industry is one of the fastest-growing consumer markets, with sales of cosmetics growing more than 15% annually.

According to Statista’s beauty, health and household care in South Africa report, growth has been driven by changing consumer preferences and its diverse consumers. An increase in male grooming and rapid urbanisation, from 63% in 2012 to 68% in 2022, has resulted in changing lifestyles and an increased focus on personal appearance.

Past Growth and Key Milestones

Historically, global beauty giants like Estée Lauder, Revlon, and L’Oréal were the mainstays in the local market, setting the standards for beauty and personal care products. The market was characterised by the prevalence of imported luxury cosmetics for lighter-skinned people, that largely excluded African skin tones and textures.

After the 1990s, the cosmetics industry began to shift with the newly empowered middle class having more disposable income, spurring demand for a wider variety of beauty products. This led to market expansion, driven by an increasingly diverse consumer base that was looking for products that catered to local needs.

Local entrepreneurs saw the gap in the market, and started researching local ingredients like rooibos, marula, aloe and baobab that gained recognition in the beauty world. The decision in 2016 by L’Oréal  to open its first research and innovation centre in South Africa is an indication of the potential and possible competitiveness of this industry.

The Rise of Local Brands and Inclusivity

Local brands have developed to reflect the country’s cultural and demographic diversity. Brands like Sorbet, Africology and Portia M are examples of how local companies are responding to the specific needs of South African consumers, particularly those with darker skin tones and afro-textured hair.

As reported in the WOW report on the cosmetics industry, women-owned skincare brands have also been on the increase. Lelive, a skincare venture launched by the Swazi-born South African actress, model and TV personality Amanda du-Pont, Skoon, and Chick Cosmetics. These are just a few of local productions that are making inroads in the industry.

Impact of COVID-19 on the Cosmetics Industry

With the disruption of supply chains impacting the availability of cosmetics in the pandemic, several new trends emerged. Consumers began to focus more on self-care, driving demand for skincare products, hair treatments, and wellness-related beauty items. Consumers prioritised face masks and sanitisers over cosmetics. Social media was full of DIY skin and hair care products, driving awareness about how simple skin and hair care can be.

On the other hand, brands quickly pivoted to meet this demand, with some producing hand sanitisers and personal care items as part of their range.

The pandemic also accelerated the shift to ecommerce. South African cosmetics brands that did not have a strong online presence scrambled to build ecommerce platforms and leverage social media to reach their audiences. Influencers and beauty consultants were driving brand visibility, and digital marketing strategies became key for competitiveness.

Future Opportunities in the Cosmetics Industry

South Africa’s diverse population offers a unique market for brands to develop inclusive products that cater for various skin tones and hair types. As consumers become more educated about ingredients and sustainability, there is a growing demand for products that are free from harmful chemicals and that are ethically produced.

Wellness is another growth area, with beauty increasingly being seen as part of a holistic approach to health and wellbeing, both inside and out. This has led to the rise of beauty supplements and nutraceuticals, which offer skin, hair, and nail benefits from within.

South African cosmetics brands have the potential to expand beyond our borders, tapping into the growing global demand for African-inspired beauty products, particularly Europe, North America, and other African countries. From a market dominated by global brands to one that is increasingly local, inclusive, and sustainable, the industry reflects the dynamism of South African consumers.

While challenges such as skin-lightening controversies and environmental sustainability remain, the industry holds promising opportunities for brands that innovate and respond to the evolving beauty landscape.