The Australia Skin Care Market is projected to witness a CAGR of 3.39% for the forecast period between 2023 and 2030. The market was estimated to be worth USD 1.54 billion in 2022 and is expected to reach USD 2.01 billion by 2030. Growth factors for the skin care market in Australia includes a shift towards luxury and premium cosmetics range, preference for organic and sustainable ingredients and consumers being more focused on self-care. Additionally, Australians have developed a higher level of sophistication and are more willing to experiment with new formulas and products while maintaining a straightforward beauty regimen. With retailers and new brands investing in educating consumers about various products, ingredients, and formulas, raising awareness has been a key force. The potency and effectiveness of native Australian ingredients in particular have made them more relevant.
The Gen Z market is having an impact on how skincare products are developed and marketed in Australia. Brands are seen as a reflection of the individuality of Generation Z. Transparency and issues like natural or organic products and ingredients, ethical and sustainable business practises, are crucial. Customers in the Gen Z generation are very comfortable researching, exploring, and discussing brands and products on social media and other digital platforms. Businesses must be proactive in responding to these channels’ customers’ demands. Price and efficacy are important to Gen Z consumers of skincare. Brands like The Ordinary have prospered greatly because consumers view their products as practical and efficient while still being reasonably priced.
Download Free Sample Report@ https://www.marketsandata.com/industry-reports/australia-skin-care-market/sample-request
Popularity of Australian Native Ingredients
As Australian consumers have begun to view locally made products differently, interest in A-beauty has grown gradually. With a sincere connection to Australian native ingredients, there is a growing appreciation for the care and thoughtfulness of Australian beauty brands, and the quality of the products offered. Simply put, Australian organic skincare is assisting in reorienting the conversation towards health, wellbeing, and environmental sensitivity. The foundation of A-beauty lies in offering customers powerful, all-natural formulations that serve multiple purposes and cut down on the steps in your skincare routines, making beauty fuss-free. It provides a straightforward approach to beauty along with efficient, natural, and local ingredients.
Customers are becoming more selective about the products they use on their skin and prioritising skincare over makeup. The demand for Australian skin care products is fuelled by the popularity of antioxidant-rich ingredients like Kakadu Plum, hydrating Spring Water, deep-cleansing Pink Clay, and nourishing Macadamia Oil. Recently, in May 2023, in order to introduce its first-ever overnight lip treatment, the TULA x Krista Horton Moisture Lip Mask Coconut Overnight Hydration Treatment, Tula Skincare (now acquired by The Procter and Gamble Company), the leading doctor-founded, clean, and clinically effective prestige skincare brand has partnered with Krista Horton. The product contains evening primrose to condition lips overnight as well as coconut oil, avocado oil, and coconut extract to help nourish and soften lips.
Government Regulations
The Australian Consumer Law still requires businesses to make sure their products are safe for consumers to use even though they are not required to conduct official safety assessments of their products like they are in the European Union. As a result, the customers get the quantity of product they ordered at a price they can afford. The business must first register with the authorities if it plans to produce cosmetics for sale in Australia using one or more foreign-sourced ingredients. It is not required to register if it buys all of the ingredients locally and blends them to create cosmetics. However, mixing ingredients that cause a chemical reaction is regarded as manufacturing and requires registration.
Inclusivity and Diversity
Inclusivity and diversity have become important values in the beauty and skincare industry. Brands are expanding their shade ranges to be more inclusive of diverse skin tones. They are featuring models and influencers from diverse backgrounds in their marketing campaigns. This ensures that people with different ethnicities and skin colours can find products that match their complexion. Some brands are even moving towards gender-neutral skincare products, acknowledging that skincare needs are not limited to a specific gender. This approach promotes inclusivity and creates a more inclusive market for all consumers. Inclusivity and diversity in the skincare industry are not only about marketing and representation but also about creating products and experiences that cater to the needs of a diverse range of consumers. By embracing inclusivity and diversity, brands are fostering a more accepting and welcoming skincare community.
Constant Demand for Sunscreens with Good SPF
Australia is known for its sunny climate and outdoor lifestyle, which encourages many Australians to spend time in the sun. Tanning is a common occurrence, especially during the summer months, when people engage in outdoor activities, go to the beach, or participate in sports and recreational events. Furthermore, Australia has a high UV index, which means the sun’s ultraviolet (UV) radiation is more intense compared to many other parts of the world. Hence, overexposure to UV radiation can lead to sunburn, premature aging, and an increased risk of skin cancer.
Therefore, due to the awareness of the harmful effects of UV radiation, there has been a significant emphasis on sun protection in Australia. Sunscreen usage, protective clothing, and seeking shade during peak sun hours are promoted to minimize the risks associated with tanning and protect the skin from UV damage. Many brands in Australia focus on developing sunscreen formulations that are water-resistant, lightweight, non-greasy, and suitable for various skin types. The maximum sun protection factor (SPF) allowed by the Australian Standard for sunscreens is 50+, which blocks 98% of UV rays as opposed to SPF30’s 96.7%. Sunscreens with SPFs of 30 and 50, when properly applied, offer excellent protection.
Impact of COVID-19
The COVID-19 pandemic has had an impact on the skincare market in Australia, both in terms of consumer behaviour and industry dynamics. The pandemic brought heightened awareness of overall health and well-being, including skin health. Consumers became more interested in skincare products that addressed specific concerns such as dryness, mask-related skin issues (such as “maskne”), and stress-related skin conditions. Brands that offered solutions for these specific concerns gained popularity. Furthermore, consumers turned to e-commerce platforms to purchase skincare products, leading to a surge in online sales. For instance, the sale of exfoliators increased by 62.7%, respectively, in March 2020 at the online cosmetics retailer Adore Beauty. Hence, Covid-19 Pandemic had overall positive impact resulting in amplified demand for skincare products, thereby boosting market growth.
Report Scope
“Australia Skin Care Market Assessment, Opportunities, and Forecast, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current scenario of the skin care market in Australia, industry dynamics and opportunities, and forecasts (2023-2030). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.