COVID-19 shook up Australian consumers’ beauty product usage and buying habits in 2020; nonetheless, the
has been on an upward trend over the past few years, reaching a revenue of over six billion U.S. dollars in 2022. The market is comprised of various segments, including cosmetics, skincare, and personal care products.
across all beauty and personal care categories in Australia, followed by skincare. From globally renowned companies such as L’Oréal, Estée Lauder, and Revlon to local brands, including Aesop, recently acquired by L’Oréal, and
, the country’s favorite beauty brands are diverse. Smaller brands focused on offering
due to rising demand for skincare and cosmetics made from natural, organic, and sustainable ingredients packaged in eco-friendly containers. Furthermore, while many mainstream brands continue to test on animals, several Australians avoid animal-tested products, instead buying from cruelty-free brands.
In-store versus online: where are consumers buying beauty products?
While in-store beauty shopping from supermarkets, drugstores, and pharmacies remains prevalent, Australia’s beauty industry is experiencing a digital transformation, with more shoppers buying, researching, and recommending their favorites online. In 2022, offline purchases accounted for around three-quarters of
Australia’s beauty and personal care product sales, with online beauty shopping making up the remaining quarter. Around one in ten of Australia's online beauty shoppers
conduct their purchases through brand-own websites; nonetheless, these websites have to increasingly compete with beauty sites, such as adorebeauty.com.au, mecca.com.au, and sephora.com.au, which offer a wider product range at discounted prices. Moreover, from YouTube self-care routines to Instagram influencer marketing and TikTok makeup trends, social media’s influence on Australia's beauty industry is profound.
Green beauty is trending
In an era in which consumers are becoming increasingly image-conscious, skincare, cosmetic, and personal care products have become ingrained in the lives of people across Australia. Many Australians have their daily beauty rituals, with over 80 percent of
acne skin care users using skincare products at least once daily and around a quarter of
Australia’s cosmetics users wearing makeup every day. To conduct these beauty routines in an eco-friendly way, a growing number of Australians are purchasing items from sustainable, cruelty-free, and chemically clean makeup lines, with many
willing to shell out more for these products in their bid to consume ethically.
The potential of Australia’s beauty tech market
Australia’s beauty tech market is relatively small; nonetheless, it is slowly growing as technology becomes increasingly incorporated into beauty businesses to improve consumer experiences. For example, 3D printing is being used to create customized products, such as lipsticks, as well as AI-powered skin analysis and virtual try-on technologies. By 2028, Australia’s beauty tech market revenue is expected to reach over 126 million U.S. dollars, with businesses adopting technologies likely to fare better as personalization and inclusivity become increasingly important.
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