Cosmetics are considered consumer staples, i.e. the use of cosmetics is common in every income segment. As
such, this market is stable and can experience continuous growth even in unfavourable economic conditions
(Łopaciuk and Łoboda, 2013). Nevertheless, in 2012, only 4% of the total global industry revenue was generated
in Africa and the Middle East and it is estimated that per capita spending on cosmetics is 10 to 20 times lower in
Africa than in Europe and in North America (Roland Berger,2013). Although the number of companies competing
on the international level in the cosmetics industry is immense,almost half of the global market is controlled by
only eleven multinational companies. Among the top 15 global companies, which combined brand value of over
$112 billion in 2014, only one company originates from the emerging markets: Natura from Brazil, with a brand value estimated at 2.23 billion U.S. dollars in 2014.
Additionally, the Global Cosmetics Market Forecast & Opportunities research report foresees that the organic
cosmetics market is to be growing to reach a compound annual growth rate (CAGR) of about 10% by 2021. This
creates opportunities for Namibian natural resources and products, provided local production capacities and
the business environment are enhanced in order to make use of this opportunity.