Colour Cosmetics in Australia

PRE-COVID-19 PERFORMANCE

Tendency towards natural look and natural products

Australian consumers tend to favour minimalistic styles in colour cosmetics, with most aiming for an effortless, natural look. This does not mean that they choose not to wear make-up at all, but rather that they tend towards categories such as blusher/bronzer/highlighter and foundation/concealers, which support this particular look.

Growing consumer interest in sustainable packaging

Sustainable packaging became increasingly relevant in colour cosmetics towards the end of the review period, with industry sources indicating that an increasing number of consumers are contacting brand owners to confirm that the packaging of products is recyclable or to ask how to recycle it. This led a number of companies to add this type of information to their websites.

Intense competition in colour cosmetics

L’Oréal Australia maintained a clear lead in a competitive and crowded colour cosmetics market in 2019. The intensity of competition in the category prompted MAC Cosmetics to reduce its prices on a range of products in Australia, including lipsticks, eyeshadows and mascaras, in October 2019.

2020 AND BEYOND

COVID-19 impact

Sales of colour cosmetics are expected to grow by 1% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to a 5% rise in sales forecast for 2020 during research conducted at the end of 2019 before the spread of the disease.

Affected products within colour cosmetics

The significant decrease in social contact resulting from measures to prevent the spread of COVID-19 has negatively impacted all areas of colour cosmetics, with those beauty and personal care regimens that are being maintained tending to shift towards skin care. Pure online retailer, Adore Beauty, for example, reported a 24% decline in sales of lipsticks and a 21% fall in sales of make-up palettes in March 2020.

Recovery and opportunities

The adverse economic impact of COVID-19 and the reduction in consumer purchasing power are set to encourage consumers to trade down within colour cosmetics in the early part of the forecast period. This will significantly impede the development of the premium segment.

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