The Association of Ghana Industries (AGI) and United Nations Industrial Development Organisation (UNIDO) have introduced a digital market hub to help the domestic cosmetics industry become a major player in the US$1.26billion African beauty and personal care market and the over-US$380.2billion global market.
Globally, the cosmetics market garnered US$380.2billion in 2019 and is projected to reach US$463.5billion by 2027, manifesting an annual growth rate of 5.3 per cent from 2021 to 2027, according to Allied Market Research; and the digital hub, dubbed ‘Ghana Cosmetics Cluster’ platform, is to help domestic cosmetic products gain international exposure and become active participants in the global value chain.
“There is a big potential for Ghana’s cosmetics,” says AGI’s Chief Executive Officer, Seth Twum Akwaboah. “If you look at the value chain, there are a lot of cosmetic products that are using local materials; and if you are converting local raw materials into a finished product, you are helping the entire value chain’s development.”
He said the local industry holds so much promise because cocoa, shea butter, palm oil and cowpea, among others, are all raw materials that are readily available and at a cheaper price; and those local producers can become globally competitive if they are given the needed support to transform these materials into products which meet international standards.
He said the ability of domestic cosmetic producers to convert these local materials into finished products also comes with several benefits, including improved income for farmers and revenue for the state.
Ghana Cosmetics Cluster
The Ghana Cosmetics Cluster is a platform to support the industry establish clusters and networks to increase competitiveness. The initiative is under the West Africa Competitiveness Programme (WACOMP) funded by the European Union and implemented by the UNIDO in coordination with the Ministry of Trade and Industry and in partnership with the AGI.
The Ghana Cosmetics Cluster platform, designed and developed as part of the implementation activities of the WACOMP, will serve as a market hub for SMEs in the cosmetics sector.
“Some of the companies are already doing very well in terms of marketing their products in-country; and as an Association what we are doing is advocacy to help them improve and become competitive,” he said.
Beyond the cluster, he said, the Association is working with stakeholders including the government to create a conducive environment that enables producers to produce at a cheaper price in order to take advantage of opportunities within the Continental Free Trade Area (AfCFTA).
Cosmetics are among the products which enjoy duty-free status within the AfCFTA.