Increasing disposable income backed by a steady labor market has contributed to the growth of the cosmetics & toiletries industry in Australia, which is expected to grow at a compound annual growth rate (CAGR) of 3.8% from AUD7.8bn (US$5.9bn) in 2018 to AUD9.4bn (US$7.3bn) in 2023, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Country Profile: Cosmetics & Toiletries in Australia’, reveals that skincare products held the largest value share of 21.8%, followed by personal hygiene products, which accounted for a value share of 16.6% in 2018.

The company predicts that the ‘suncare’ category will grow at the fastest value CAGR of 7.4%, followed by male toiletries, which is estimated to record a value CAGR of 4.9% during 2018–2023.

Anugna Victor, Consumer Analyst at GlobalData, says: “Rising employment levels is driving the growth of the cosmetics & toiletries industry in Australia, as an increasing number of the working population wish to look good at their workplace, thus seeking make-up products.”

However, Australia’s value share in the Asia-Pacific (APAC) region, which stood at 3.6% in 2018, is anticipated to decline to 3.2% in 2023, mainly due to the projected faster growth of cosmetics & toiletries products in other leading countries in the region, such as China, during the forecast period.

According to the report, the per capita consumption (PCC) of cosmetics & toiletries in Australia, which is high compared to both APAC and global levels, is set to marginally increase from 33.7 units in 2018 to 34 units in 2023.

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The report also states that L`Oreal S.A., Procter & Gamble and Unilever were the leading market players while Colgate, Gillette and Nivea were the top brands. Private label products grew at a faster CAGR than branded products during 2013–2018 to reach overall penetration levels of 1.2% in 2018, supported by a well-developed distribution network of hypermarkets and supermarkets, and consumers’ positive perception of private label products.

Victor concludes: “As consumers in Australia are increasingly becoming aware of the harmful effects of chemicals in cosmetic & toiletries, products with claims such as ‘herbal’ and ‘100% natural’ will contribute to the growth of the market in the coming years.”