Skin Care in Australia

PROSPECTS

Skin care is booming

Skin care value sales continue to see significant growth across all main categories as consumers continue to pay attention to their skin care regime. As consumers are becoming better informed, they are becoming more discerning in their skin care purchases, checking ingredients labels to avoid harmful chemicals and to find products containing desired ingredients such as naturally-derived antioxidants, retinol and vitamin C.

Retailers’ expansion continues to drive growth

The expansion of retailers such as discount pharmacy Chemist Warehouse and beauty specialist retailers Mecca and Sephora with their “brand-agnostic”, consumer-driven approach is helping to offset softer growth in traditional channels such as department stores Myer and David Jones.

Demand for natural skin care and Australian ingredients continues to gain relevance amid transparency and sustainability concerns

Demand for natural, organic and free from ingredients and products has increased significantly in Australia. The definition of “natural” varies between products/brands and there is no regulation or standard definition of what “natural” means when used on labels.

COMPETITIVE LANDSCAPE

L’Oréal Australia remains the leading company in skin care

L’Oréal Australia Pty Ltd has continued to strengthen its position in Australia by continuing to invest in multiple channels of distribution. The company is present in the largest and fastest-growing channels including beauty specialist retailers, Mecca and Sephora, and parapharmacies, Priceline and Chemist Warehouse.

Face masks and patches are a popular trend

Face masks continues to see strong value sales growth within skin care. Using face masks continues to increase in popularity in Australia, with a noticeable shift towards sheet masks and patches, although there is still a huge range of face mask products that come in tubes and tubs.

K-beauty versus A-beauty

Despite Australians’ love for Korean beauty products, with multiple retailers and e-tailers in Australia focusing on K-beauty products including Boniik, Innisfree, Style Story, Nudie Glow, and Beautyworks Cosmetica, there is growing demand for skin care products that feature Australian ingredients such as indigenous plants, local botanicals and mineral clays. A-beauty brands are gaining greater recognition for their shorter lists of pure, unique ingredients and their simplistic approach to the skin care routine.

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