Market Trends of Australia Beauty and Personal Care Products Industry
Inclination Towards Natural and Organic Formulations
- In recent years, consumers have become increasingly aware of synthetic chemicals used in cosmetic formulations and their potential side effects that lead to various health issues like skin irritation, allergies, dullness, and toxicity. Hence, there has been an enhanced demand for natural and organic beauty and personal care products nationwide. Cosmetic products made of organic and natural ingredients do not negatively impact the skin and hence are remarkably demanded.
- A survey conducted by Consumer Policy Research Centre in 2022 revealed that over 25 percent of Australian consumers considered having sustainable products available in the beauty and personal care sector as very important. Besides this, increased penetration of the internet and smartphones and social media impact, especially among the young population, driving the sales of beauty and personal care products through e-commerce channels as they provide consumers with a wide selection of innovative products.
- According to the Australian Communications and Media Authority, as of 2021, approximately 99% of Australians have internet access. According to the IAB Australia and Pureprofile Australian E-commerce Report 2021, 76% of the customers bought products online at least once a month. Among those customers, 70% bought non-grocery items, including beauty and personal care products, online every month.
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Personal Care Segment Witnesses High Growth
- 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 environmental exposure drive the need for personal care products, such as sun care, for maximum skin protection.
- Moreover, due to the rising prevalence of hair thinning, loss of volume, dryness, and several other hair-related concerns, hair care products are emerging as the most affluent and cost-effective ways. The increasing focus on personal grooming and the rising number of hair salons boost the growth of the haircare segment in the beauty and personal care market.
- According to a survey by the Australian Bureau of Statistics, in 2019, around 73.3 thousand people were employed as hairdressers across Australia. This number was forecasted to jump to 79.6 thousand by 2024, indicating continued growth in the haircare segment. Furthermore, increasing celebrity endorsements and rising knowledge about the detrimental effects of chemicals and synthetic ingredients, as well as convenience of use and availability of tiny travel-size packs, drive demand for natural/organic and vegan hair care products like shampoo.
- 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 immense popularity among 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 is a multi-tasking product that shields against UVA and UVB rays and provides the benefits of niacinamide, antioxidant-rich Kakadu plum, and Pseudoalteromonas ferment extract, a strain of healthy bacteria that encourages collagen production and helps fight the effects of blue light on the skin.
