Australia Beauty and Personal Care Products Market - Growth, Trends, and Forecasts (2023-2028)

The Australian Beauty and Personal Care Products market is projected to register a CAGR of 4.15% during the next forecast period.

Due to high disposable income, Australian consumers, especially women, spend highly on beauty and personal care (color cosmetics and skincare in particular). Furthermore, Australian women spend more on personal care products. Thus, this is expected to influence market growth in the upcoming years. For instance, as of 2021, according to financial comparison service provider Mozo, the average Australian woman spent approximately USD 3,600 on beauty and personal care products each year. Thus, this is expected to influence market growth in the upcoming years. New product innovations and the indulgent nature of beauty and personal care products drive market growth. Owing to the harsh climate in Australia, with extreme humidity and intense sunlight, personal care product companies have invested in research in sun protection and tanning products. Some of the brands offering sunscreen in the Australian market include Neutrogena, Banana Boat, Hawaiian Tropic, Surf Life Saving, and Woolworths, among others. Companies are mainly targeting millennials, as they follow industry trends closely and make frequent purchases based on new product claims and application methods.

With consumers increasingly turning to the internet for advice on beauty and personal care products, the influence of digital channels has grown lucratively. Consumers' purchasing decisions in Australia are highly influenced by social media, as they follow vlogs, bloggers, and influencers for information on products and application techniques, thus, driving the market studied. Additionally, online shopping is expanding beyond the desktop. Supermarket operators, like Woolworths and Coles, have rolled out app development for younger and busier consumers. Furthermore, manufacturers leverage online platforms optimally by selling their products through their websites and listing their products on popular e-retailing websites to improve their brand visibility and reachability.​

Australia Beauty & Personal Care Products Market Trends

Increasing Trend of Online Purchasing

Online purchasing is gaining popularity in Australia. The increased internet penetration across the country has fueled the Australian beauty and personal care products market. According to the Australian Communications and Media Authority, as of 2021, approximately 99% of Australians have internet access. Furthermore, social media has played a crucial role in the Australian beauty and personal care market, allowing companies to build their brands cost-effectively. Companies also engage bloggers and vloggers to promote certain brands on social media and other websites. This move helped the online purchasing trend to grow lucratively over the years in Australia. The trend of getting inspired by celebrities and trying to look similar has become very common among the younger population in the region. This trend has been driving the growth of online purchasing in Australia, owing to the online tutorials and vlog promotions of different brands that can be purchased online. According to the IAB Australia and Pureprofile Australian E-commerce Report 2021, 76% of the customers bought online at least once a month. Among those customers, 70% bought non-grocery items, including beauty and personal care products online every month. Such factors have aided in the growth of the market studied.

Escalating Demand for Sun Care Products

People in Australia are highly involved in outdoor sports and activities, such as beach cricket, rock climbing, abseiling, skydiving, bungee jumping, and hiking. Such an active lifestyle and high exposure to the sun make them opt for sun care products for maximum skin protection. Australia has the highest rate of skin cancer as well as melanoma skin cancer worldwide due to its high exposure to ultraviolet radiation over a lifetime. The increasing prevalence of skin cancer among people in the country led to the adoption of sun protection regimens by people, including a significant usage of sun protection products. ​Local players in the country have also developed premium sun care products that have successfully penetrated the domestic and international markets. Players, such as Australian Gold LLC, also offer a wide range of after-sun, self-tanning, and sun protection products that are organic and cruelty-free.​

Additionally, in a period where personalization and customization of skincare to meet individual consumer needs is of rising importance, products with multifunctional claims are witnessing an increase in consumers. Players operating in the market focus on developing products with multifunctional properties to cater to the growing demand. For instance,​ sunscreen specialist Supergoop offers an SPF 40 sunscreen-serum hybrid formulated with vitamin C and hyaluronic acid in Australia. Supergoop’s Daily Dose of Vitamin C + SPF 40 ensures skin benefits from the ingredient and stays protected from the sun. The multi-tasking product shields against UVA and UVB rays and packs niacinamide (a favorite for fading dark spots) and antioxidant-rich Kakadu plum. While Hyaluronic acid adds a dose of moisture, and Pseudoalteromonas Ferment Extract, a strain of healthy bacteria, encourages collagen production and helps fight the effects of blue light on the skin.

Australia Beauty & Personal Care Products Market Competitor Analysis

The Australian beauty and personal care products market is fragmented, with the presence of several companies offering their products in the market at competitive prices. Loreal SA and Beiersdorf AG are the top companies with a diversified product portfolio and a strong brand image. Mergers and acquisitions characterized Australia's beauty and personal care industry as companies looked to consolidate their offerings and expand into new product areas. Some other prominent players operating in the market are Unilever PLC, the Estee Lauder Companies, Colgate-Palmolive, and Johnson & Johnson Inc.

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• The market estimate (ME) sheet in Excel format
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