South Africa investors eye Saudi market for their cosmetic products


Saudi Gazette

JEDDAH — Theresa Moller the executive director of the Cosmetic Council of South Africa commented on this visit by saying that they are excited and have made plans to Ensure they are successful and able to be hear and want to achieve continue business.

She noted that the aim of the Council is to strengthen industry growth of the cosmetic sector, increase export growth, encourage enterprise development of the smaller entrepreneurial manufacturers. The council focuses on facilitating export opportunities for companies producing cosmetic, fragrance, toiletry and pharmaceutical producers.

South Africa she highlighted is a key investment location for both commercial opportunities within its boarders and the rest of the African continent given the opportunity for investors to reach one billion people.

The investors highlighted that Saudi and South African investors have agreed to enhance trade investment though exchange of high level business delegations to take part in different sector specific exhibitions. Further they agreed to exchange if information about business innovation and explore opportunities.

The South Africa investors met with journalists at the South Africa Consulate in Jeddah prior to their participation at the Saudi Health and Beauty Exhibition on Dec. 3-5, 2017.

The beauty industry in the Middle East is estimated at $17 billion in 2016 the share of South Africa is $3.2 billion. In the gulf the consumption rate of cosmetics is very high. Saudi Arabia ranks number one in the gulf region as it consumes 41.6% of cosmetic products in the region, this is estimated at $2 billion. It is estimated that each Saudi woman spends about $3800 a year on cosmetic products. The sales of skin care produces is expected to increase by 35% compared to 2015 to reach $679 million.

The transitional South Africa export market remains Europe which takes 38% of South African exports followed by East Africa with 25% of the exports, 15% goes to West Africa and Middle East, 12% to Asia and West Asia and 10% to Americas. The country hopes to increase its presence in UAE, Saudi Arabian and India. In Africa however they are targeting Kenya, Tanzania, Ghana, Nigeria, Morocco and Senegal.

Saudi Arabia noted Moller's presentation is a promising market because of the new Vision 2030, the young population, the increase of the internet market and there is a growing cosmetic market as well as need for training Saudi women on makeup and skin consultation.