Market Analysis for Chemicals Products
Market Overview – Soaps, Detergents and Laundry Bars
There are few manufacturers of soaps and detergents in Malawi. The Malawian market is
dominated by the following local and foreign based companies:
Local
Manufacturers
& Retailers
Foreign based
companies
Candlex
(Manufacturer)
Unilever (Also
imports from sister
companies in kenya
and Zimbabwe)
People's, Chipiku,
Sana, Seven Eleven,
Foodworths, Iponga
and Tutla
(Retailers)
Golgate Palmolive
(South African
Subsidiary)
Shoprite (retailer)
According to Trademap, the imports of soaps and detergents amounted to USD 51.4 million in
2012, representing an increase in value of 17% p.a. over the 2008 to 2012 period. The total
imports for washing & cleaning preparations (HS 3402) reached approximately USD 12.2
million in 2012. Accounting for 52% in Malawi’s share of imports, Zambia is the largest market,
followed by Kenya (25.9%) and South Africa (13.1%). Another noticeable aspect is that the
imports of soaps (HS Code 3401) stood at USD 36.4 million, registering 16% growth in value
p.a. over the same period. Fastest growing markets for this product category are Germany,
growing by 60% between 2007 and 2008, Kenya (36%) and UAE (128%). On the other hand,
Malawi’s imports from South Africa experienced a decrease of 2% p.a.
Our research has revealed that the Malawian market is dominated by several well established
brands such as Sunlight, OMO and U-Fresh. The soaps and detergents market is a highly
competitive sub-sector. Therefore, the potential for Mauritian suppliers to penetrate the market is
quite limited. Mauritian suppliers will need to adopt a low price penetration strategy and create
brand awareness to make Malawians switch brands in order to gain market share.
.
The below table summarizes the retail price of soaps and detergents in Malawi:
COMPANY
PRODUCT
RETAIL PRICE
(Malawi Kwacha)
RETAIL PRICE
USD
Unilever
Maluwa Blue 1kg
620.00
1.44
Maluwa Green 100g
80.00
0.18
Sunlight 150g
135.00
0.31
Omo Multi Active 100g
205.00
0.47
Candlex
U-Fresh Washing Powder 400g
610.00
1.41
Colgate Palmolive
Ajax Dish Liquid Lemon Lime
750ml
1420.00
3.30
Dyna Chem
Gedent Dish Washing Liquid
750ml
935.00
2.17
Econo Gedent Dish Washing
Liquid 750ml
685.00
1.59
Dyna Chem Toilet Cleaner/
Sanittiset 1litre
Scoutex General Purpose
Cleaner scouting Powder 500g
1040.00
2.41
145.00
0.33
Unilever
Vim Scouter With Lemon 500g
135.00
0.31
Colgate Palmolive
Axion The Greese Stripper
Lemon Lime 200g
585.00
1.36
Source: People’s Supermarket
Chipiku Stores
Mr. Peter Kemp, the General Manager of Chipiku Stores claimed that he is currently sourcing
most of his products from South Africa, Kenya and India. He was presented the soaps and
detergents from Mauritius and asked to give his evaluation. According to him price and quality
are the main factors influencing purchasing decision of laundry bars in Malawi. In regards to the
beauty soaps and fabric softener the packaging were found to be of low quality. He stated it is
important to have expiry date on the beauty soaps as Malawian consumers pay attention to this
particular aspect. He further mentioned that washing powders is not very popular in Malawi.
On the other hand, the floor polish has received positive feedback. Mr. Kemp mentioned that
there is a huge demand for red floor polish. While the price and the quality of the packaging
were found to be suitable for the Malawian market, Mr Kemp said that the imports for such type
of products will also depend on the melting point degree.
Deodorants
Mr. Kemp informed us that competing in the deodorants market is hard as it is already flooded
with well-established brands from South Africa. Commenting on the samples, Mr. Kemp found
the price too expensive. He mentioned that he is currently importing Axe deodorant (50 ml) from
South Africa for $1.00.
Peoples Trading Centre Ltd
Mr Dings Mpota, Deputy Merchandise Manager of People’ was also approached to explore the
trade opportunities for household detergents and soaps. According to him, the Mauritian washing
powder is very interesting and with the appropriate marketing strategies has a chance to be
accepted by the Malawian consumers and can even compete with “OMO”.
Market Overview –Fertilizers
Malawi, being an agrarian economy, fertilizer plays an important role. Fertilizer is mainly used
for maize and tobacco production. The country is a net importer of fertilizer. There are few local
players in the market, of which the largest traders are; Export Trading, Nyiombo Investments and
Farmers World Ltd and Agricultural Trading Company Ltd. It is important to note that the
Malawian market is also flooded with small scale farmers.
In 2012, imports of fertilizers amounted to USD 280 million, predominantly from UAE, China,
India, Saudi Arabia and South Africa.
Source: Trademap
China is the leading market for fertilizers with a share of 20.4% in Malawi’s fertilizers imports.
Malawi’s import of fertilizers from China has increased over the 2008-2012 period by 74%. On
the other hand, we can see that South Africa’s export of fertilizers to Malawi has declined over
the 2008-2012 period by 29% while its imports from the world have increased by 5% p.a.
Agricultural Trading Company Ltd (A.T.C)
With a view to explore the potential for exporting Bio-Fertilizers to Malawi, a meeting was
arranged with the Sales Manager, Mr. Tony Sekani. Incorporated in 1962 as Agricultural Trading
Company Nyasaland Limited, A.T.C has grown to become one of the leading suppliers of
agricultural inputs and equipment in Malawi. They import fertilizers from South Africa and
Saudi Arabia.
Mr Sekani informed EM officers that there is a lengthy process of registration that may take up
to two years as there are some tests that need to be carried out by the Ministry of Agriculture.
The registration charges amount to USD 7000 and are to be borne exclusively by the
manufacturer. It must be noted that the bio- fertilizers will have to undertake trials for over two
seasons by the government authority before it is approved.
He stated that although the Malawians farmers have just started getting acquainted with biofertilizers. ATC is not currently importing bio-fertilizers as they are five times more expensive
than chemical ones and consumers are more prone used to utilising chemical rather than bio
fertilizers.