07 Oct 2020
Posted in Consumer
Organic additives products expected to drive Australia’s cosmetics & toiletries industry, says GlobalData
The ongoing trend of using organic additives in cosmetics and personal care products is expected to drive the Australian cosmetics & toiletries industry from A$8.09bn (US$5.63bn) in 2019 to A$9.87bn (US$6.73bn) in 2024, at a compound annual growth rate (CAGR) of 4.0%, according to GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’ reveals that ‘skincare’ was the largest sector with a value sales of A$1.77bn (US$1.23bn) in 2019. However, the suncare sector was recorded the fastest value growth at a CAGR of 7.6% in 2019. It is followed by male toiletries and make-up sectors with CAGRs of 5.0% and 4.6%, respectively, in the same year.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Consumers are paying attention towards what they put on their skin, which has increased the demand for ethically-sourced skincare and beauty products.”
Hypermarkets & supermarkets accounted for the highest share of 37.3% in the distribution of cosmetics & toiletries in 2019. It was followed by department stores and chemist/pharmacies, which held shares of 13.8% and 12.9%, respectively, in the same year.
L’Oréal S.A., Procter & Gamble and Unilever were the leading market players in the Australian cosmetics & toiletries industry in 2019. Gillette and Colgate are the leading brands in the industry. Private labels accounted for a low value share of 1.2% in the Australian cosmetics & toiletries industry in 2019.
Anchal concludes: “Rising popularity of sustainable beauty products among the Australian consumers on account of increasing awareness of the ill effects of chemicals in cosmetics is prompting the beauty brands to offer naturally sourced formulations in skincare and beauty products which are likely to support new innovations in the sector.”