“Palm oil is typically used in luxury personal care items,” said Mariam Royker, chemicals materials & food research analyst, at Frost & Sullivan.
“In these countries there is a bourgeoning middle class emerging that demands products that were previously deemed as non-essential items - these are the products that contain palm oil such as beauty soaps, shower gels and body lotions,” she told Cosmeticsdesign-Europe.com.
'Analysis of the Palm Oil Market in the Personal Care Industry in Nigeria and Ghana' highlights that both Nigeria and Ghana are net importers of palm oil, as local production is unable to keep up with rising demand.
Government policies set to boost palm oil production
According to Royker, a rise in the production of palm oil is expected in Ghana over the next five years, driven by government policy.
“These policies are set to stimulate local production of palm oil and consequently decrease the reliance on imports from Malaysia and Indonesia,” she explained.
Meanwhile, slower growth in palm oil production is forecast for Nigeria, Royker notes.
“Nigeria has previously not focused its efforts on developing its agricultural sector, relying primarily on the oil and gas sector to stimulate economic growth,” she explained.
“However, it has realised the dangers of relying heavily on one sector and will thus look into initiatives to revive the agricultural sector in order to further stimulate economic growth”
The report reveals that Nigeria, the third largest palm oil producer in the world, earned revenues of $205.3mn in 2011, a figure that is estimated to reach $290.4mn in 2016. Similarly, Ghana’s revenues are predicted to increase from $53.2mn in 2011 to $72.8mn in 2016.