02/11/2012 (4-traders) - The rising demand for personal care products is triggering greater demand for crude palm oil by local manufacturers in Ghana. Due to local production being unable to keep pace with escalating demand, Ghana remains a net importer of palm oil. Similarly, Nigeria,  is also still a net importer of palm oil, despite being the 3rd largest producer of palm oil globally.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Palm Oil Market in the Personal Care Industry in Nigeria and Ghana, finds that Ghana and Nigeria earned revenues of $53.2 million and $205.3 million in 2011 respectively, and estimates this to reach $72.8 million and $290.4 million in 2016. The research covers applications in all purpose soaps, beauty soaps, shower gels and body lotions.

"The growing demand for personal care products is boosting the palm oil industry in Ghana," noted Frost & Sullivan's Chemicals Materials & Food Research Analyst, Mariam Royker. "Strong economic growth has resulted in an expanding middle-class who are willing to spend more on personal care products."

When the global recession hit the Ghanaian economy in 2008, the toilet soap industry remained profitable despite the unstable economy. This revealed the resilience of a product which that consumers consider part of their everyday lives.

In Nigeria, FMCG manufacturers face several challenges which are affecting their production and revenues. Here, uUnreliable power supply and poor infrastructure systems have resulted in high production costs for personal care products in the country.  This has forced manufacturers to look to cheaper raw materials in order to drive down the cost of production, decreasing the demand for high quality materials and thus opening up the market for cheap, low-quality imports.

Promisingly, Ggovernment policies to that are expected to boost local production, such as high import taxes on finished goods and external investments in Nigeria's palm oil sector, are expected to boost local production are set toand promote market growth. In Ghana, government initiatives have sought to develop the agricultural sector and increase local palm oil production, while decreasing the need for imports.

If you are interested in more information on this study, please send an e-mail with your contact details to Samantha James, Corporate Communications, at samantha.james@frost.com.

Analysis of the Palm Oil Market in the Personal Care Industry in Nigeria and Ghana is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets:  Market for Dairy Ingredients in South Africa and Analysis of the Anionic Surfactant Market and its Importance to FMCG Manufacturers. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.