07 Jul 2020
Posted in Consumer
Australian skincare sector to reach US$1.49bn registering a CAGR of 4.3% by 2024, says GlobalData
The Australian skincare sector is forecast to grow from A$1.77bn (US$1.23bn) in 2019 to A$2.2bn (US$1.49bn) by 2024, recording a compound annual growth rate (CAGR) of 4.3%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Skincare – Market Assessment and Forecasts to 2024’ reveals that the ‘facial care’ was the largest category with value sales of A$1.5bn (US$1.05bn) in 2019. The category also led the sector in volume terms with sales of 99.3 million units in the same year. However, ‘hand care’ category is forecast to register the fastest volume growth at a CAGR of 3.4% during 2019-2024. It is followed by facial care and depilatories categories with CAGR of 1.9% each.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Rising awareness among the Australian consumers about harmful effects of synthetic ingredients on skin has led to surge in demand for skincare products that claim to be free from chemicals and are safe. The trend is expected to increase innovation in face care, hand care and body care products driving further uptake in the coming years.”
The report further reveals that the per capita consumption (PCC) of skincare in Australia is significantly higher in comparison to global and regional averages. It stood at 4.9 units in 2019, compared to 2.1 units in the Asia Pacific (APAC) and 2.7 units at global level. In Australia, facial care recorded the highest PCC among the categories in 2019, followed by body care, hand care, depilatories and make-up remover.
L’Oréal S.A., Nature Cosmeticos S A and Procter & Gamble are the leading companies in the Australian skincare sector. Aesop and Nivea are the leading brands in the Australian skincare sector in value terms in 2019. Further, private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector.
Hypermarkets and supermarkets are the leading distribution channels in the Australian skincare sector with a value share of 31.7% in 2019.
Bisht concludes: “Emergence of natural skincare products formulated with plant based ingredients is significantly influencing consumer demand. Consumers are taking into consideration the social and environmental outcomes of their purchases and are seeking products with natural ingredients which are portended to drive the Australian skincare sector growth going forward.”