16 Jul 2020
Posted in Consumer
Make-up market in Australia forecast to grow at 4.6% CAGR over next five years, says GlobalData
The Australian make-up sector is expected to grow from A$1.08bn (US$753.7m) in 2019 to A$1.35bn (US$926.2m) in 2024 at a compound annual growth rate (CAGR) of 4.6%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Make-Up – Market Assessment and Forecasts to 2024’, reveals that ‘face make-up’ was the largest category in terms of both the value and volume sales in 2019. However, the ‘lip make-up’ category is projected to record the fastest CAGR of 5.1% in value terms for the period 2019–2024, followed by nail make-up and face make-up with CAGRs of 4.7% and 4.6%, respectively.
Anchal Bisht, Consumer Analyst at GlobalData, says: “The per capita expenditure of the Australian consumers on make-up products stood at US$29.6 in 2019, which was significantly higher than the global and the regional levels. Increasing purchasing power among the Australian consumers enabled them to opt for high quality make-up products. Moreover, consumers’ preference towards natural/organic products has encouraged them to opt for sustainably sourced products which show favorable conditions for sector expansion.”
Hypermarkets & supermarkets was the leading distribution channel in the Australian make-up sector, with a value share of 29.6% in 2019, which was trailed at a distance by the department stores with a value share of 22.9% in the same year.
L`Oreal S.A., Coty, Inc. and The Estee Lauder Companies Inc. were the leading players in the Australian make-up sector while Revlon, Rimmel, and Maybelline were the top brands. Private labels accounted for a smaller share compared to brands in the country.
Ms Bischt concludes: “The demand for make-up products among the Australian consumers is significantly influenced through social media marketing. Several beauty brands are investing in social media campaigns and blogger recommendations so as to offer consumers transparency and a fulfilling experience which is expected to fill the gap between makeup brands and consumers, thus driving the Australian make-up sector growth.”