Mass Beauty and Personal Care in Australia

PROSPECTS

Positive growth to continue for mass beauty and personal care due to the expansion of drugstores/parapharmacies

While premium products enjoy success in Australia, mass beauty and personal care continues to grow due to its strong distribution and wide availability. Channels such as drugstores/parapharmacies continue to increase their distribution value share of beauty and personal care, benefiting from their discounted prices, expanding store presence and wide range of products across beauty and personal care, consumer health and home care.

Demand for natural and organic products grows

Driven by the health and wellness trend, the demand for more natural and organic products has increased, including in mass beauty and personal care. Although mass beauty products with natural claims have traditionally been found in health stores and premium beauty retailers within limited ranges, the increasing demand has resulted in manufacturers developing more naturally-positioned products and making their products available through new channels, including grocery retailers and drugstores.

Internet promotion continues to engage consumers

As consumers in Australia are highly connected to digital channels, drugstores continue to focus on developing their presence on social media platforms. Priceline, for example, continues to gain followers on Facebook and Instagram.

COMPETITIVE LANDSCAPE

L’Oréal Australia’s extensive product portfolio secures the company’s lead

L’Oréal Australia Pty Ltd continued to lead value sales of mass beauty and personal care in 2018 thanks to its extensive product portfolio. Its brands benefit from extensive availability in key channels such as supermarkets and discount pharmacies and the company frequently launches new products in line with consumer trends in order to remain relevant.

Price promotions and discounting support growth

Mass beauty and personal care benefits from the continuous use of price promotions as retailers and manufacturers reduce prices to attract consumers. Price promotions are no longer linked to a particular event such as end of season or the launch of a new range but have become a common practice among retailers as they compete for share.

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