23 July 2017

Boost to palm oil production in Africa due to growing demand for personal care products


palm oil production in Africa

Personal careproducts are generally used for personal health and hygiene. Some of the products that includes are lip balm, cleansing pads, colognes, cotton swabs, cotton pads, deodorant, eye liner, facial tissue, hair clippers, lip gloss, lipstick, lotion, makeup, mouthwash, nail files, condoms, pomade, perfumes, personal lubricant, razors, shampoo, conditioner, talcum powder, shaving cream, toilet paper, toothbrushes, bathing gel, skin creams, toothpaste, hair oil etc.

As per the reports given by an analyst from Frost & Sullivan, there is a heavy demand for personal care products in Ghana and Nigeria due to which there is an increase of palm oil production in Africa. As per the analysis, the revenue earned by Ghana and Nigeria is around $53.2 million and $205.3 million respectively in 2011 and are forecasting the revenue to reach $72.8 million and $290.4 million by 2016.

The reports also say that Ghana and Nigeria also imports palm oil despite being the 3rd largest producers of palm oil globally. There is a sudden increase in demand for palm oil by African cosmetic industry compared to the local production of palm oil because of heavy demand for personal care products. In Ghana, to resolve the issue, the government have taken initiatives in developing agricultural industry and increase the production of local palm oil.

Reports suggests that despite of recession in the Ghanaian economy in 2008, toilet soap industry was under profit, since the toilet soap product  were used definitely by the consumers on regular basis.

Major issues in Nigeria include unstable infrastructure and country’s leadership issue due to which FMCG manufacturers are facing challenges. To resolve the leadership issue, new government policies have come up such as high import taxes on finished goods, which are expecting to increase the local production of palm oil. As per the reports, even the external investments in Nigeria are in- turn increasing the production of palm oil.

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