The Australian make-up market is set to register a compound annual growth rate (CAGR) of 4.6 percent during 2021-26, as the country lifts its Covid-19 pandemic control measures and consumers leave their homes more often, stimulating demand for colour cosmetics.
According to GlobalData’s ‘Australia make-up – Market Assessment and Forecasts to 2026’report, the lip make-up category will register the fastest value over 2021-26, followed by nail make-up, in Australia.
“With most Covid-19 restrictions out of the way, Australians are engaging in more out-of-home activities. This spurred the demand for colour cosmetics in the first half of 2022,” Bobby Verghese, Consumer Analyst at GlobalData.
“However, with the Omicron infections soaring, many are playing it safe, adorning masks in public, and working from home, weighing on the demand in the second half of the year. Moreover, spiralling inflation, triggered by the Russia–Ukraine conflict is constraining the consumer purchasing power. As more consumers turn into bargain hunters, retailers offering discounts and special offers and private labels are set to benefit.”
The make-up growth predictions come on the back of an industry surge in Australia in the last five years.
Australian per capita expenditure (PCE) on make-up increased from AUD 10.3 in 2016 to AUD 15.2 in 2021. This surpassed the regional average of AUD 2.4, and the global average of AUD 3.9 by a huge margin.
Last year, hypermarkets and supermarkets were the leading distribution channels in the Australian make-up market, followed by department stores and health and beauty stores.
The Estee Lauder Companies, L’Oréal, and Revlon were the top three companies by value in 2021, while Revlon and Maybelline were the leading brands.
Looking ahead, Australia’s PCE on make-up will surge to AUD 17.7 in 2026, according to GlobalData, as the economic and health crisis dissipates.
“The health & wellness trend accentuated by the Covid-19 pandemic will spur the demand for clean-label cosmetics with natural and organic ingredients. The increasingly eco-conscious post-1990s Millennials and Gen-Z cohorts will propel the adoption of sustainable ingredients and packaging, including refillable make-up containers,” added Verghese.
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“As the men’s make-up market gains more traction, the gender diversity theme will also make its mark in the sector, and market leaders are expected to roll out more gender-neutral make-up products in the immediate future.”