BASF opens new personal care lab in Nigeria: spotlight on the market

By Lucy Whitehouse

- Last updated on GMT

BASF opens new personal care lab in Nigeria: spotlight on the market
The ingredients company, major supplier to the global beauty and personal care industry, has opened a new Application Technology Laboratory in Nigeria.

The company’s Care Creations division dedicated to personal care has launched the lab.

It says the lab’s opening is the result of the company having established local competence in application and formulation technology. BASF has commissioned its local technical service for African hair and skin care applications throughout sub-Saharan Africa.

At the same time, the launch marks a strengthening of the company’s network of local expertise in marketing and sales in the region, BASF asserts.

“Customized solutions meeting the specific requirements of consumers in different markets are key for business growth,” said Dirk Mampe, Vice President Business Management Personal Care Solutions Europe.

“With our broadened presence and the investment in a new Application Laboratory in sub-Saharan Africa, we can provide on-site technical expertise and market insights to our customers and support the local development of tailor-made products for the specific needs of African hair and skin.”

Spotlight on beauty and personal care in Nigeria

Factors driving growth in Nigeria include a growing middle class with higher disposable incomes, an increasing population (particularly young people and babies), on-going urbanisation, and the rise in white collar employment, explains Euromonitor International​.

“Most products in beauty and personal care, particularly in the premium sector, are dominated by international brands and companies,” explains the research firm.

“The majority of premium products, despite having local manufacturing representation (eg Unilever Nigeria and PZ Industries), are directly imported by third parties, where local multinationals focus on producing mass products.

The Nigerian economy performed fairly well in 2017, the most recent year on record for Euromonitor, and this was partly thanks to a stable currency, following the economic recession of 2016.

“With most beauty and personal care products being imported, better availability of foreign exchange helped to reduce importation costs, thereby leading to lower price growth (following steep price rises in 2016),” the firm confirms.

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