Consumer Demand for Bio-based Personal Care Products Increases Phytochemical Production
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Operating in a fledgling market, phytochemical manufacturers have to invest substantially in technology, consumer research and advertising. The long wait to obtain and maintain bio prospecting licenses often deters investors, as do the lack of homogeneity and efficacy in chemicals, and the high costs of processing phytochemicals. Entrants need to sign partnerships with diverse companies in the chemicals ecosystem to quickly establish themselves.
Collaborations with chemicals companies are critical because home and personal care companies purchase chemicals from global suppliers that manufacture or source their chemicals overseas. This increases the costs for consumer goods companies; however, the lack of local participants that meet their quality standards as well as the lower retail prices in the region make it difficult for them to expand or survive. The entry of international chemical companies with greater technical abilities is set to change the competitive landscape.
"There is huge potential waiting to be tapped into in unexplored ingredients and in customer bases beyond the traditional markets of South Africa, Kenya and Nigeria," noted Nyambayo. "The development of diverse product portfolios tailored for the SSA population, focusing not just on women but on men as well, will widen the customer pool. Phytochemical manufacturers can further broaden their target market by employing wholesome manufacturing, agricultural and clinical practices, and adhering to ethical sourcing to achieve international standards."
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Growth Opportunities in the Phytochemicals Market in Sub-Saharan Africa, 2016
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