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

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

The Australian skincare products market is projected to register a CAGR of 6.02% during the next five years.

The emergence of evolving technologies, such as smartphones, personal computers, the internet, e-commerce, social media, communication strategies, and marketing campaigns, has changed the landscape of the Australian skincare products market. According to the Australian Communications and Media Authority, approximately 99% of Australians have internet access. Three-quarters of Australian adults (91%) with a residential internet connection do so via the NBN. Before the COVID-19 lockdowns, 76% of older Australians aged 55 and above utilized the internet, but 98% of them did so in the first half of 2021. As a result, the increased internet usage also aids in the increased exposure of Australian citizens to online skin care product ads and promotions, which, in turn, drives the market.

Additionally, the rising consumer awareness about using skincare products that are vegan, organic, and natural has encouraged manufacturers to launch new offerings and expand their footprint in the market. The presence of multiple stores of Sephora and Mecca Cosmetica across Sydney and Melbourne has exposed Australian consumers to international brands. Australian consumers are increasingly drawn toward the claims of these advanced products and the presence of active ingredients in them in the right concentration. Technological advancements are thought to be the major reason behind the growth of the professional skincare market. This is leading to consumer willingness to buy a broader range of complex-formulated and natural green products. The development of fusion and environment-friendliness has raised the demand in the industry.

Brands are using influencer marketing on social media to influence customers and encourage advertisers and marketing practitioners to shift their brand conversations to 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.

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. ​ As brands have shifted to cater to increasingly digital consumers, new technology trends in the category have accelerated. AR and AI have emerged as driving forces in the development of new category experiences that combine digital and physical elements. Australian brands, like Go-To Skincare, Sand and Sky, Frank Body, and Mecca Cosmetica, are causing a stir online while making profits. 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.

It is anticipated that more success would result from a more coordinated approach to creating pertinent rules and regulations as digital technologies become a significant driver for all Australian enterprises and industries.

Australia is an important and emerging market for organic and natural personal care products. Skincare products, haircare products, perfumes, and fragrances are some of the important cosmetics in the organic market. Growing concerns regarding the side effects of chemicals in skincare products, which lead to ailments such as skin irritation, allergies, and skin dullness, have been fueling the demand for natural and organic skincare products in Australia.

Skincare products made of organic ingredients, such as plant extracts and natural oils, do not leave any harmful impact on the skin. 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, a number of players in the market are now offering organic skincare products across the country.

Some of the skincare brands in Australia include Clemence Organics, The Base Collective, Bondi Skin Co, Merinda Botanicals, and Charles + Lee. Skincare products such as lotions, body oils, scrubs, cleansers, and facial masques are expected to have the highest market share, followed by hair care, and this is expected to continue for the upcoming years.

The Australian skincare products market is highly fragmented, with some global and local players. The global players, such as L'Oreal SA, Procter & Gamble, Beiersdorf AG, and Unilever, hold a prominent share. The major strategy that they follow is product development followed by expansion of the company. The key players are embarking on mergers and acquisitions as a strategy to strengthen their market dominance and product development, followed by the expansion of the company.

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