Market Trends of Australia Skin Care Products Industry
Growing Influence of Social Media and Impact of Digital Technology
- The emergence of evolving technologies, such as smartphones, personal computers, the internet, e-commerce, social media, communication strategies, and marketing campaigns, have changed the landscape of the skin care products market in Australia. The players operating in the market have been using influencer marketing on social media to influence customers and encourage advertisers and marketing practitioners to shift their brand conversations in the digital space. Social media has become an increasingly important platform for brands to showcase their products.
- Social media posts can reach a wide range of potential customers from all over the world and generate buzz, particularly in the personal care industry. Local beauty and personal care brands are partnering with social media platforms to reach a new range of customers. For instance, in November 2022, Hey Bud partnered with Pattern Australia, a leading e-commerce accelerator, to improve its e-commerce operations and increase sales through the online marketplace.
- User-generated content is being shared by brands on their social media pages. The internet and social media, in particular, have the potential to boost the sales of skincare products as consumer recommendations and influence make them powerful marketing platforms. The market relates to cleansers, moisturizers, body lotion, body wash, and so on, with leading brands, such as L'Oréal, Unilever, and Estee Lauder, turning to Facebook, Instagram, and YouTube, launching products and engaging consumers with tutorials and promotional campaigns. Additionally, the Australian government continued to invest in bolstering fundamental frameworks and providing targeted support for goals related to digital growth in the budget for 2021-2022.
- Consumers are more likely to discover new brands or products via advertisements and updates on brands' social media pages on platforms including Facebook and Twitter. Furthermore, skin care product consumers tend to take into consideration product reviews and other consumers' opinions in the form of recommendations, comments on social media, posts from expert bloggers, or celebrity endorsements before making their purchase decisions. Thus, the growing influence of social media coupled with digital technological advancements has been further augmenting the growth of the market over the review period.
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Rising Demand for Natural and Organic Skincare Products
- Australia is an important and emerging market for organic and natural skincare products. Natural skincare products that are free from chemicals and transparent about the content have been preferred by consumers, which is likely to drive demand for natural skincare products across the country. This factor has resulted in a shift in preference from synthetic skincare products to organic products among consumers.
- To capitalize on this growing interest, manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as "organic," "vegan," "natural," "chemical-free," and "cruelty-free." Due to the surge in demand for these skincare products, several players in the market are now offering organic skincare products across the country.
- Consumers are increasingly becoming aware of synthetic chemicals used in cosmetic formulations and their potential side effects leading to various health issues like skin irritation, allergies, skin dullness, toxicity, etc. This is paving the way for enhanced demand for natural and organic skin care products market. Cosmetic products made of organic and natural ingredients do not leave any harmful impact on the skin and, hence, are in great demand. Leading Australian brands are prioritizing transparency and minimizing environmental impact. For instance, Sukinis, a Melbourne-based skincare brand, is 100% carbon neutral, greywater-safe, and has biodegradable formulations. They even partnered with Greening Australia on the Reef Aid Programme to rebuild eroding land and restore coastal wetlands. Crop Natural also offers natural skincare with COSMOS certification (Natural and organic certification For Cosmetics), which ensures a sustainable manufacturing process with no water wastage and by-products. Skincare products such as lotions, body oils, scrubs, cleansers, and facial masques are expected to have the highest market share this is expected to continue for the upcoming years.
