AUSTRALIA SKINCARE PRODUCTS MARKET ANALYSIS

Australia skincare products market is projected to reach around US$ 3,215.0 Million by 2030, exhibiting a CAGR of 4.7% during the forecast period (2023-2030).

Australia Skincare Products Market: Drivers

• Rise in online presence skincare product: The internet and social media, in particular, have the potential to boost the sales of skincare, as consumer recommendations and influences make them a powerful marketing platform. The market related cleansers, moisturizers, body lotion, body wash, and so on, with leading brands L'Oréal, Unilever, and Estee Lauder all turning to Facebook, Instagram, and YouTube for new launches and customer engagement with tutorials and promotional campaigns. This is expected to drive the growth of the market. For instance as per Australia government E-commerce is expected to be the fastest-growing sales channel in the beauty industry, with a projected growth rate of 12% per year between 2022 and 2027.

• Increasing concerns related to skin: One of the primary reasons for the growth of the market is the increasing awareness of the adverse effects of chemical substances on the skin. These effects can lead to skin irritation, allergic reactions, and dullness. Awareness of the advantages of natural skin care has encouraged consumers to look for products that are both eco-friendly and sustainable, as well as those that offer more product ingredient transparency.                            

Australia Skincare Products Market: Restraints

• Increasing presence of counterfeit products: The pandemic has completely changed the way people shop for personal care products. Online shopping has become increasingly popular among people. With products being available at the click of a button, counterfeiting also increased at a lightning speed. This is expected to hinder the market growth. Environmental concern associated with the plastic packaging of cosmetic products is also expected to hinder the market growth.
• Counterbalance: To control counterfeiting of products, awareness needs to be created among the masses about these products. Also, the protection of necessary intellectual property rights needs to be maintained and using technology to safeguard the brand should be undertaken. In case of packaging of cosmetics products, eco-friendly bags should be provided to the customers of the brand.

Figure 1. Australia Skincare Products Market Share (%), By Product Type, 2022

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Australia Skincare Products Market: Opportunity

• Increasing demand for personalized skincare products: The growing popularity of personalization and customization of skincare products is expected to provide lucrative growth opportunities over the forecast period. Players operating in the market are focusing on developing products with multifunctional properties to cater to the growing demand. For instance, Sunscreen specialist, Supergoop offers an SPF 40 sunscreen-serum, hybrid formulated with vitamin C and hyaluronic acid. Supergoop’s Daily Dose Vitamin C + SPF 40 ensure skin benefits from the ingredient and stays protected from the sun.

• Consumer preference for prebiotics and probiotics products: Increasing launch of prebiotics and probiotics products is expected to support the market growth over the forecast period. For instance, in January 2021, Esmi launched the probiotics skincare range under Mylck. Esmi’s Skin Mylck range uses a concentrated dose of a probiotic function called a ‘lysate’, which offers an ideal environment for skin to thrive when compromised by outside elements and bad bacteria.

Australia Skincare Products Market: Trends

• Consumer awareness regarding the skin health: Growing popularity of cannabinoids and skin health will favor the market growth. An endocannabinoid system could be an important contributor to healthy skin by affecting skin metabolism and inflammation. For instance, The Skin Cancer Prevention and Early Detection initiative, led by the Centers for Disease Control and Prevention (CDC) and the National Cancer Institute (NCI), aims to increase awareness of skin cancer and promote sun-safe behaviors.

• Rise in demand for blue-light protection skincare products: Blue-light protection skin care is emerging as a major trend in the market. Research studies show how blue light from electronic devices can lead to changes in skin cells, including cell shrinkage and death. These speed up the aging process. Even exposures as short as 60 minutes can trigger these changes. Thus, with increasing consumer awareness, the demand for skincare products that provide protection from blue light is propelling the market growth, primarily in developed and developing countries.

Australia Skincare Products Market: Key Developments

• In July 2022, Tula Skincare, a clinical skincare company, partnered with the beauty retailer Mecca to launch its products in Australia and New Zealand. The company's products are formulated with probiotic extracts and contain superfoods.
• In March 2022, L'Occitane Group acquired a majority shareholding in Grown Alchemist, a skincare brand based in Australia. This acquisition will enable the group to strengthen its relationship with Grown Alchemist's international customers, penetration in its existing market in regions such as Australia, and expand its presence in emerging international markets.
• In July 2021, L’Oréal Professional launched Metal Detox Hair Care collection. The product was revealed to beauty editors at a virtual event on July 27, with an inside look into the science of metals of the hair from the perspective and expertise of Inventive colorist and certified trichologist Bridgette Hill. Celebrity colorist and balayage specialist, Min Kim and Hair Designer Charlie Le Mindu also participated in the showcase.
• In February 2021, in the Australian market, Procter &Gamble American multinational consumer goods corporation  launched four new products based on the current skincare ingredients in vogue, such as niacinamide + vitamin C, and addressed the accelerating serum segment.

Australia Skincare Products Market: Segmentation

• Australia skincare products is segmented on the basis of product type, category, and distribution channel. Further it is divided on the basis of product type: Face Care (Cleansers, Masks, Exfoliators/Scrubs, Oils/Serums, Moisturizers, and Other Products), Lip Care, and Body Care (Body Lotions, Body Wash, and Hand and Foot Care), on the basis of category: Premium/Prestige Skincare Products and Mass Skincare Products, and on the basis of distribution channel: Specialist Retail Stores, Hypermarkets/Supermarkets, Convenience Stores/Departmental Stores, Online Retail Stores, and Other Distribution Channels.
• On the basis of product type, in 2022, the face care segment accounted for the largest market share of 72% in terms of value, followed by the body care and lip care, respectively.

Figure 2. Australia Skincare Products Market Share (%), By Category, 2022

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• On the basis of category, in 2022, the mass skincare products segment accounted for the largest market share of 52% in terms of value, followed by the premium/prestige skincare products.

Australia Skincare Products Market: Impact of Coronavirus (COVID-19) Pandemic

The effects of the lockdown have had a significant impact on skincare product demand on online platforms. This has demonstrated the increasing popularity of natural skin care products and is transforming them into a major market segment within the cosmetics industry. According to the Australian Communications and Media Authority, Australia's internet penetration rate is estimated to be around 99%, with 91% of Australian adults with residential internet connections using the National Broadband Network (NBN) as their primary source of internet access. Prior to COVID lockdowns, the majority of older Australians (76%) aged 55 and over used the internet, however, in the first six months of 2021, 98% did so.

Australia Skincare Products Market: Key Companies

Key companies operating in Australia skincare products market are Beiersdorf AG, L'Oréal SA, Procter & Gamble, Unilever, Bioderma Laboratories, Clarins Group, Dermalume Skincare, Johnson & Johnson Inc., Estee Lauder Inc., Miranda Kerr Pty Ltd (Kora Organics), Jurlique International Pty Ltd, and Natio.

*Definition: Skin care is a process of improving the texture and appearance of the skin. It involves the use of products which helps to maintain the glow and make us look attractive. There are a variety of skin care products available, including toners, powdered skincare, cleansing lotion, body lotion, mask, serums, and creams containing beta-hydroxy acid, retinol, and alpha-hydroxy acids. These products are among the most sought-after in the market. They help to make us look confident and attractive in public. Skin care items containing hydroquinone are commonly referred to as bleaching creams or lightening agents. These skin care products are used to reduce the hyperpigmentation caused by age spots, dark spots associated with pregnancy, and spots caused by hormone therapy.