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Chinese securities firms, including Citic Securities and Sinolink Securities, have published research reports expressing confidence in the long-term growth opportunities within Africa’s personal care sector. This optimistic outlook is driven by several factors, including favorable demographics, low market penetration, and a noticeable trend toward increased consumer spending across the continent.
Last year, Africa’s personal care market was valued at approximately USD 3.8 billion and is projected to surpass USD 5.5 billion by 2029. In the long term, it is expected to continue expanding beyond USD 10 billion, based on data from Frost Sullivan.
The anticipated growth is attributed to three main drivers. First, Africa benefits from a significant demographic dividend, with East and West Africa combined housing about one billion people, an average age of just 18, and a birth rate around 4 percent. Second, penetration rates for essential products remain relatively low—only about 20 percent of consumers use baby diapers, and roughly 30 percent use sanitary napkins—far below the 70 to 90 percent penetration seen in mature markets such as Europe and North America. Third, signs of consumption upgrades are becoming increasingly apparent within the region.
Regarding the competitive landscape, international major brands tend to dominate more developed markets like South Africa, while Chinese companies have rapidly gained ground in East and West Africa through cost-effective product offerings. For example, Softcare’s diapers are priced between 9 and 20 US cents per piece, significantly more affordable than Procter & Gamble’s products, which range from 18 to 25 US cents. Last year, Softcare ranked first in market share by unit sales for diapers and sanitary napkins, with 20.3 percent and 15.6 percent, respectively, although it was second in terms of sales value.
The importance of deep localization is emphasized for Chinese firms competing in Africa. To succeed, companies need to establish local factories efficiently to avoid high tariffs and logistics costs. As of April 2025, Softcare had set up eight factories with 51 production lines across eight African countries, employing 97 percent local staff and covering a distribution network of over 2,800 dealers at multiple levels. Leading Chinese companies with integrated industry and trade advantages are well-positioned to benefit from this sector’s growth.
Softcare went public in Hong Kong in November, raising HKD 2.4 billion (approximately USD 306.2 million), with its stock surging over 30 percent on the first day of trading. In the first three quarters of the previous year, the company reported operating revenue of USD 334 million and a net profit of USD 96 million, translating to a profit margin of 21.5 percent.
Analysts are also encouraging investors to explore opportunities within this sector, highlighting the promising development prospects for Chinese infant care firms such as Haoyue Personal Care, which are seen as having strong growth potential.
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