May 26, 2022
(press release)
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Driven by health, environmental, and ethical concerns, Australian consumers are increasingly shifting their preferences towards ‘clean-label’ and ‘green’ beauty products. Against this backdrop, the Australian skincare market is expected to expand from AUD1.8bn ($1.3bn) in 2021 to AUD2.1bn ($1.6bn) by 2026 at a compound annual growth rate (CAGR) of 3.5% during 2021–2026, says GlobalData, a leading data and analytics company. GlobalData’s report, ‘Australia Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’ reveals that the market growth is largely driven by the hand care category, which is forecast to register the fastest value CAGR of 5.1% over 2021–2026, followed by the facial care category with a projected CAGR of 3.6%. Likitha Nalluri, Consumer Analyst at GlobalData, says: “For the past few years, the clean and green beauty trend has been gaining momentum, with customers identifying themselves with businesses that have a strong philosophy of ethics, environmental safety, and human health. Consumers are expecting more from their makeup brands than mere superficial cosmetic benefits. “Informed consumers are thereby avoiding products with artificial colors, microplastics, and fillers that may provide short term benefits, albeit at great cost to their health and the environment in the long run.” ‘Hypermarkets & supermarkets’ was the leading distribution channel in the Australian skincare market in 2021, followed by chemists/pharmacies, and direct sellers. The per capita expenditure (PCE) of skincare in Australia increased from $16.9 in 2016 to $22.5 in 2021, surpassing the global average ($9.8) and the regional average ($9.2). The PCE on skincare in Australia will reach $28.3 by 2026. L’Oréal S.A., Natura &Co, and Procter & Gamble were the top three companies in the Australian Skincare market by value in 2021, and Aesop and Olay were the top brands. Nalluri concludes: “To tap the growing consumer trend towards conscious or responsible consumerism, formulators must make sure that all substances used in skincare products are safe for them and the planet. Accreditations, certifications, and logos from reputed institutions can lend more credence to environmental, ethical, or safety product claims. “Additionally, the clean-label beauty movement is driving demand for innovative formulations with complex and scientific sounding ingredients on the packaging labels.”
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