Australia Skin Care Products Market Analysis by Mordor Intelligence
The Australia skin care products market is valued at USD 3.90 billion in 2025 and is expected to grow to USD 4.96 billion by 2030, registering a steady CAGR of 4.93% during the forecast period. This growth reflects a dynamic market driven by increasing consumer awareness about skincare, a preference for natural and organic ingredients, and the rising influence of wellness trends in the Australia skin care products market.. Strict yet innovation-friendly regulations from the Australian Industrial Chemicals Introduction Scheme (AICIS) and the Therapeutic Goods Administration (TGA) are supporting the demand for premium skincare products. By product type, facial care continues to dominate the market, while body care products are gaining popularity. In terms of category, mass-market products maintain their scale, but premium products are growing at a faster pace due to their perceived quality and effectiveness. Natural and organic products are increasingly challenging synthetic options as consumers prioritize clean and sustainable formulations. Adults remain the primary users of skincare products, but there is a growing opportunity to target younger demographics across the Australia skin care products market. Distribution channels are evolving, with physical stores offering expert advice and online platforms providing convenience and accessibility. The market is moderately fragmented, with multinational companies like L’Oréal, Unilever, and Estée Lauder leveraging their global research and development capabilities and significant advertising budgets to maintain a competitive edge in the Australia skin care products industry.
Key Report Takeaways
- By product type, facial care led with 73.50% of the Australian skin care products market share in 2024, whereas body care is tracking a 5.50% CAGR through 2030.
- By category, the mass tier accounted for 65.82% of the Australian skin care products market size in 2024, while premium formulations are expanding at a 6.82% CAGR to 2030.
- By nature, synthetic offerings held a 75.97% share in 2024; the natural/organic tier is advancing at a 6.98% CAGR through 2030, within the Australia skin care products market.
- By end user, adults made up 87.58% of demand in 2024, and the kids segment is gaining at a 5.13% CAGR to 2030.
- By distribution channel, health and beauty stores captured 38.74% of sales in 2024, whereas online retail is expanding at a 6.25% CAGR through 2030, in the Australia skin care products market.
Australia Skin Care Products Market Trends and Insights
Drivers Impact Analysis
| DRIVER | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Consumers' preference for organic and natural products | +1.2% | Australia-wide, with stronger adoption in urban centers | Medium term (2-4 years) |
| Impact of social media and celebrity endorsements | +0.8% | National, with highest influence in Sydney, Melbourne, Brisbane | Short term (≤ 2 years) |
| Advancements in technology driving product formulation improvements | +0.7% | Local manufacturing benefits in Victoria, NSW | Long term (≥ 4 years) |
| Growing consumer demand for anti-aging products | +0.9% | Australia-wide, concentrated in affluent demographics | Medium term (2-4 years) |
| Rising preference for multifunctional facial care products | +0.6% | National, with early adoption in metropolitan areas | Short term (≤ 2 years) |
| Increasing awareness about skin health concerns | +0.5% | Australia-wide, driven by UV exposure concerns | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Growing consumer demand for anti-aging products
Australia’s anti-aging skin care market is growing due to several factors, including an aging population with higher disposable incomes, constant exposure to strong Ultraviolet radiation, and increasing demand for effective, multifunctional skincare products. The Australian Bureau of Statistics (2024) reports that individuals aged 55 and older represent 26% of the population in capital cities and are more prevalent in regional areas[1]Source: Australian Bureau of Statistics, "Regional Population By Age and Sex", abs.gov.au. This highlights a significant group with unique skincare requirements shaping the Australia skin care products industry. The combination of these demographic trends and environmental challenges is driving the need for advanced anti-aging products and sunscreens with broad-spectrum protection. For example, in March 2024, Medipledge, a premium skincare brand designed by dermatology and beauty experts, was introduced in Australia. The brand offers clinically tested formulas aimed at restoring the skin barrier, reflecting the growing popularity of cosmeceutical and medically focused skincare solutions in the Australia skin care products industry.
Increasing awareness about skin health concerns
Awareness about skin-related issues is growing rapidly in Australia, significantly influencing the skin care market. Eczema, also known as atopic dermatitis, is one of the most common allergy-related skin conditions in the country. The Australasian Society of Clinical Immunology and Allergy (ASCIA, July 2025) highlights that eczema is closely linked to overall immune health[2]Source: Australasian Society of Clinical Immunology and Allergy, "ASCIA Action Plan for Eczema (Atopic Dermatitis)", allergy.org.au. Eczema Support Australia (2023) reports that nearly 3 million Australians are affected by this condition, which can have a severe and widespread impact on their quality of life[3]Source: Eczema Support Australia, "Call For National Eczema Strategy To End ‘Treatment Maze’", eczemasupport.org.au. Efforts such as public health campaigns and increased access to digital education are helping to raise awareness about eczema and other sensitive skin conditions. This growing awareness is driving demand for skincare products that are dermatologist-tested, hypoallergenic, and specifically designed to address these issues. As a result, managing eczema and sensitive skin has become a key factor contributing to the growth of the Australian skin care products market.
Rising preference for multifunctional facial care products
Rising demand for multifunctional facial care products is becoming a key growth driver in Australia, as consumers increasingly seek convenience, value, and efficacy within streamlined routines reflecting broader shifts in the Australia skin care products industry. There is growing interest in products that combine multiple benefits such as hydration, anti-aging, sun protection, and blemish control in a single formulation. Hybrid solutions like moisturizers with SPF, serums with added antioxidants, and tinted sunscreens are gaining traction, especially among younger consumers who value time-saving, minimalist skincare. Reflecting this trend, a survey by Contour Clinics Australia (August 2025) reports that Australians spend an annual USD 25.4 billion across skincare and cosmetic treatments, highlighting the scale and willingness to invest in multifunctional solutions. Retailers and brands are responding by expanding all-in-one ranges, supported by dermatologist input and marketing that emphasizes efficiency, affordability, and clinical validation supporting demand in the Australia skin care products market.
Consumers’ preference for organic and natural products
Australian consumers are increasingly favoring skincare products made with organic and natural ingredients, as they now value knowing exactly what goes into the products they use. Many local brands are gaining attention by incorporating native Australian botanicals like Kakadu plum and desert lime, which are recognized for their unique skincare benefits, such as high antioxidant content and hydration properties. These brands also comply with the Australian Industrial Chemicals Introduction Scheme (AICIS), ensuring their products meet strict safety and transparency standards[4]Source: Australian Industrial Chemicals Introduction Scheme, "Australian Industrial Chemicals Introduction Scheme", industrialchemicals.gov.au. To cater to this growing demand, retailers are expanding their offerings of natural and organic skincare products, aiming to attract consumers who are conscious of both quality and affordability. Sustainability has become a key focus for brands, with practices like using recyclable packaging and adopting eco-friendly production methods becoming essential to appeal to environmentally aware buyers, driving innovation in the Australia skin care products industry.
Restraints Impact Analysis
| RESTRAINT | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Increase in the availability of counterfeit products | -0.4% | National, with higher risk in online channels | Short term (≤ 2 years) |
| Concerns regarding the health impacts of chemical ingredients | -0.3% | Australia-wide, concentrated in health-conscious demographics | Medium term (2-4 years) |
| Growing preference for at-home skin treatment solutions | -0.2% | Urban centers with higher disposable income | Medium term (2-4 years) |
| Volatile raw material costs | -0.5% | Supply chains affecting all manufacturers | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Increase in the availability of counterfeit products
The increasing presence of counterfeit skincare products is a growing concern in Australia. These fake products, often sold online with packaging that closely mimics genuine brands, have led to safety warnings from the Therapeutic Goods Administration (TGA) after incidents like chemical burns were reported. To combat this issue, skincare brands are implementing solutions such as serialisation codes, QR-based verification apps, and tools that allow consumers to directly authenticate products. Despite these efforts, it remains challenging to control the entry of counterfeit goods into the country, as border enforcement and product seizures are not always effective. To tackle this problem further, brands and regulatory bodies are focusing on educating consumers. Campaigns stress the importance of buying from authorised retailers and checking product authenticity to avoid potential health risks. This dual approach of technological measures and consumer awareness aims to protect both customers and brand reputations Australia skin care products market.
Growing preference for at-home skin treatment solutions
The growing trend of at-home skin treatment devices is presenting new challenges for the Australian skin care market. Products like LED masks, micro-needling pens, and chemical peel kits allow consumers to perform treatments at home that were traditionally done by professionals. While these devices offer convenience and cost savings, they also come with risks. Improper use, incorrect application, or lack of professional guidance can lead to skin damage, irritation, or unsatisfactory results. This has caused some consumers to experience negative outcomes, which can impact their trust in such products. The rise of these at-home solutions is creating competition for dermatologists, clinics, and premium skincare brands, as some consumers are opting for DIY alternatives instead of professional services across the Australia skin care products market. Although these devices open up new growth opportunities in the market, they also pose challenges by dividing consumer demand and raising concerns about safety and product reliability within the Australia skin care products industry.
Segment Analysis
By Product Type: Facial Care Retains Primacy while Body Care Gains Velocity
In 2024, facial care remained the largest segment in the Australian skin care products market, contributing 73.50% of the total market share. This highlights the strong consumer focus on face-specific skincare routines, which involve higher spending compared to other body care products. Items like moisturizers, serums, and cleansers are essential parts of daily skincare regimens. The growing awareness of skin health and demand for products with multiple benefits are driving this trend. The preference for dermatologist-tested and clinically proven solutions has further strengthened the dominance of facial care. Brands are innovating by introducing products that combine hydration, sun protection, and corrective properties, catering to consumers who value both convenience and effectiveness within the Australia skin care products market.
The body care segment, while smaller, is expected to grow steadily with a projected CAGR of 5.50% through 2030. This growth is fueled by increasing consumer interest in addressing issues like uneven skin tone, rough texture, and overall skin health. Products such as body lotions enriched with natural ingredients and active compounds are gaining popularity. Consumers are becoming more aware of the importance of sun protection, moisturization, and sensitivity care for the entire body. Retailers are expanding their offerings to include natural and multifunctional body care products, while professional and at-home treatments are complementing traditional routines. This indicates a shift where consumers are investing more in comprehensive skincare focusing on full-body wellness and appearance supporting growth in the Australia skin care products market.
Note: Segment shares of all individual segments available upon report purchase
By Category: Mass Holds Scale, Premium Sets Pace
In 2024, mass-priced skin care products made up 65.82% of the Australian market, largely due to their affordability and easy availability in supermarkets, pharmacies, and online stores. These products cater to budget-conscious consumers by offering essential benefits like hydration, sun protection, and basic anti-aging care. Retailers play a significant role in promoting this category through discounts, bundle deals, and prominent shelf placement, ensuring these products remain a staple in daily skincare routines across the Australia skin care products market. The combination of affordability, convenience, and widespread distribution has solidified the dominance of mass-priced skincare in the market.
On the other hand, premium skincare products are expected to grow significantly, with a projected CAGR of 6.82% through 2030. This growth is driven by consumers seeking high-quality, innovative solutions that deliver visible results reshaping the Australia skin care products industry. Premium brands are attracting attention with advanced features like AI-based skin analysis, personalized product recommendations, and luxurious in-store experiences such as skin consultations. These products often include clinically proven formulations and exclusive ingredients, appealing to consumers willing to invest in their skincare. As more people prioritize tailored and effective skincare solutions, the premium segment is set to become a key driver of Australia skin care products market growth in the coming years.
By Nature: Natural Momentum Challenges Synthetic Mainstay
In 2024, synthetic and conventional skin care products held a significant share of the Australian market, accounting for 75.97% of the total. These products remain popular due to their proven effectiveness, affordability, and wide availability across supermarkets, pharmacies, and online platforms. Consumers trust these formulations for their consistent performance in addressing common skincare needs such as moisturization, cleansing, and anti-aging. Their dermatology-backed formulations and cost efficiency make them a preferred choice for everyday use within the Australia skin care products market. Despite the growing interest in natural alternatives, synthetic skincare continues to dominate due to its reliability and accessibility.
On the other hand, natural and organic skin care products are expected to grow at a faster rate, with a projected CAGR of 6.98% through 2030. This growth is driven by increasing consumer demand for eco-friendly and plant-based products that use native Australian ingredients like Kakadu plum, desert lime, and macadamia oil. Many brands are focusing on sustainability by offering eco-certified packaging and transparent ingredient sourcing, which appeals to environmentally conscious buyers. Retailers are also expanding their natural product ranges to cater to this demand. As a result, natural and organic skincare is emerging as a key growth area in the Australian market, aligning with the rising trends of wellness and sustainability in the Australia skin care products market.
By End User: Adult Core with Growing Youth Opportunity
In 2024, adults made up 87.58% of the Australian skin care products market, highlighting their significant contribution to the Australia skin care products industry. This demand is largely driven by the need for anti-aging products, solutions for pigmentation issues, and items that help repair the skin barrier. Many adults are now prioritizing skin health and are drawn to products like serums, moisturizers, and sunscreens that offer multiple benefits and are backed by clinical research. The growing interest in personalized skincare routines, which address both prevention and treatment, has further strengthened the dominance of this segment. Dermatologist-recommended and hybrid products are gaining popularity among adult consumers, reflecting their preference for effective and reliable solutions within the Australia skin care products market.
On the other hand, the children’s skincare segment is expected to grow at a steady rate of 5.13% CAGR through 2030, driven by increasing demand for safe and gentle products. Parents are becoming more conscious of their children’s skin health and are opting for items like sulfate-free cleansers, mineral-based sunscreens, and hypoallergenic moisturizers. These products are specifically designed to cater to sensitive skin and ensure long-term skin health from an early age. Brands are expanding their offerings in this category by focusing on natural ingredients, safety certifications, and dermatologist approvals. This growing attention to children’s skincare presents a promising opportunity for the Australia skin care products market, as more parents seek high-quality products for their kids.
By Distribution Channel: Physical Expertise Meets Online Convenience
In 2024, health and beauty stores made up 38.74% of the Australian skin care products market. These stores attract customers by offering trained staff, personalized consultations, and on-site diagnostics, which help in driving higher-value purchases. Consumers prefer these outlets for expert advice, premium product options, and the ability to test products before buying. The in-store experience, combined with professional recommendations, makes these stores a popular choice, especially for anti-aging products, targeted treatments, and multifunctional skincare solutions. This approach has solidified health and beauty stores as a critical distribution channel in the Australia skin care products market.
On the other hand, online retail is expected to grow at a compound annual growth rate (CAGR) of 6.25% through 2030. This growth is driven by increasing consumer confidence in e-commerce, the availability of authenticity verification seals, and the rise of social-commerce livestreaming. Online platforms allow brands to reach a wider audience while offering features like interactive product demonstrations, customer reviews, and virtual diagnostics that mimic in-store experiences. The convenience of shopping from home, a wide variety of options, and personalized recommendations reflecting digital acceleration in the Australia skin care products industry, are encouraging more consumers, both in urban and regional areas, to shop online across the Australia skin care products market.
Geography Analysis
Australia's high levels of sun exposure make broad-spectrum SPF products an essential part of daily skincare routines. Major urban areas like Sydney, Melbourne, and Brisbane lead in spending on premium skincare and professional clinic treatments, driven by higher incomes and a strong interest in skincare trends. In regions like Western Australia and Queensland, there is significant demand for after-sun repair products and mineral sunscreens due to longer outdoor seasons. Meanwhile, regional towns are improving access to skincare knowledge through e-commerce platforms and dermatologist-led pop-up events, helping to expand the market's reach across the country.
In 2023, Australia imported AUD 1.15 billion worth of beauty products while exporting only AUD 437 million, highlighting its reliance on international supply chains. However, local brands are increasingly looking to expand into Asian markets. Government initiatives, such as Austrade programs that streamline halal certification and logistics partnerships, are helping Australian companies enter regions like the Middle East and Southeast Asia. Diversifying supply chains to countries like Thailand and Vietnam is helping businesses reduce risks related to freight costs and tariff fluctuations.
Regulations play a significant role in shaping the skincare market in Australia. Oversight by AICIS for cosmetic chemicals and TGA for quasi-drug classifications ensures high compliance standards, which boost consumer trust but also increase costs for manufacturers. Seasonal variations in demand create opportunities for innovative products, such as barrier creams for winter and lightweight gel-serums for summer. Skincare formulators must also address Australia's diverse climate, designing products that remain effective and stable across temperature ranges from 5°C to 40°C, catering to the needs of consumers from Darwin to Hobart.
Competitive Landscape
The Australian skin care products market is moderately fragmented, with global companies like L’Oréal, Unilever, and Estée Lauder dominating the market by utilizing their extensive research and development capabilities and large advertising budgets. On the other hand, local brands such as Aesop and Rationale focus on promoting their Australian identity and using locally sourced ingredients to differentiate themselves. Instead of competing on price, companies are emphasizing sustainability, omnichannel strategies, and innovative ingredients that can be patented. Recent acquisitions, such as Kao Corporation’s USD 450 million purchase of Bondi Sands, reflect the ongoing consolidation trend in the market.
Technology is playing an increasingly important role in the skin care market. For instance, Estée Lauder is experimenting with AI-powered skin scanners to personalize skincare solutions, while Australian brand Naked Sundays is innovating by incorporating SPF into makeup products. To address growing concerns about greenwashing, many brands are adopting third-party life-cycle audits to ensure transparency and build consumer trust. Subscription models are also gaining traction, enabling companies to gather data on customer purchasing habits and improve product development. The combination of clinically validated products, clean-label trust is shaping the competitive dynamics of the market and influencing consumer preferences across the Australia skin care products industry.
There are several emerging opportunities in the market that remain untapped. These include skincare products specifically designed for menopause, stress-relief formulas using neuro-cosmetic ingredients, and professional-grade at-home laser systems. New entrants with strong, evidence-based claims and effective digital marketing strategies have the potential to quickly establish themselves in these niches. However, they need to act swiftly to capture market share before established players adapt and respond to these trends. By addressing these gaps, companies can cater to evolving consumer needs and drive growth in the market.
Australia Skin Care Products Industry Leaders
-
Unilever PLC
-
Beiersdorf AG
-
L’Oréal SA
-
Estée Lauder Companies Inc.
-
Procter & Gamble Company
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: AESTURA, Korea's leading dermatologist-recommended dermocosmetic brand for sensitive skin, expanded its presence in the Australian skin care market with its exclusive launch at Sephora Australia stores and on Sephora.com.au.
- August 2023: L’Oréal had announced the completion of its acquisition of the Australian luxury beauty brand, Aesop. The deal was finalized as per the terms previously disclosed, marking a significant expansion of L’Oréal’s portfolio in the premium beauty segment.
- March 2023: Shiseido's skincare brand Drunk Elephant launched its latest moisturizer, the Protini Polypeptide Cream, in Australia. This innovative product is enriched with Pygmy waterlily extract, essential amino acids, and a unique blend of signal peptides to provide deep hydratio.
- February 2023: The Australian skincare brand STUFF unveiled a line of eight supercharged skincare products designed specifically for men. Among these offerings, the SPF 50+ Face Lotion stands out as a remarkable all-in-one solution, boasting paraben-free ingredients and recyclable packaging.
Australia Skin Care Products Market Report Scope
Skincare products are a range of products that support skin integrity, enhance appearance, and relieve skin conditions. These are applied to the skin to avoid symptoms of early aging, pimples, and black patches.
The Australian skin care products market is segmented by type and distribution channels. Based on type, the market is segmented into facial care, body care, and other types. Based on distribution channels, the market is segmented as supermarkets/hypermarkets, convenience stores, specialist stores, online retail stores, and other distribution channels.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Facial Care Products | Cleansers |
| Moisturizers and creams | |
| Serums and Essence | |
| Toners | |
| Face Masks | |
| Other Facial Care Products | |
| Body Care Products | Body Lotion |
| Foot and Hand Cream | |
| Other Body Care Products | |
| Lip Care Products |
| Mass |
| Premium |
| Natural/Organic |
| Synthetic/Conventional |
| Kids |
| Adults |
| Supermarkets/Hypermarkets |
| Health and Beauty Stores |
| Online Retail Channels |
| Other Channels |
| By Product Type | Facial Care Products | Cleansers |
| Moisturizers and creams | ||
| Serums and Essence | ||
| Toners | ||
| Face Masks | ||
| Other Facial Care Products | ||
| Body Care Products | Body Lotion | |
| Foot and Hand Cream | ||
| Other Body Care Products | ||
| Lip Care Products | ||
| By Category | Mass | |
| Premium | ||
| By Nature | Natural/Organic | |
| Synthetic/Conventional | ||
| By End User | Kids | |
| Adults | ||
| By Distribution Channel | Supermarkets/Hypermarkets | |
| Health and Beauty Stores | ||
| Online Retail Channels | ||
| Other Channels | ||
Key Questions Answered in the Report
How large is the Australia skincare products market in 2025?
The Australia skincare products market size records USD 3.90 billion in 2025 with a 4.93% CAGR outlook toward 2030.
Which product type holds the greatest share?
Facial care captures 73.50% of category revenue, thanks to sustained investment in advanced serums and at-home devices.
What drives premium-segment acceleration?
Premium growth stems from clinical-backed actives, AI-powered skin diagnostics, and experiential retail that justifies higher price points.
How fast is natural and organic skincare growing?
Natural and organic ranges show a 6.98% CAGR through 2030 as shoppers prioritise ingredient transparency and eco-packaging.
Page last updated on: