In Markets

Skincare sales in Australia set to hit US$1.49bn in 2024

skincare

Sales of skincare products in Australia are set to be worth some US$1.49 billion in 2024, on the back of a projected 4.3% compound annual growth rate between 2019 and 2024, according to Globaldata.

SEE ALSO : Malaysian market for skincare to be worth $612.9 million by 2024

According to Globaldata, Australia’s biggest skincare category in sales terms in 2019 was facial care, worth some US$1.05 billion, and was the largest in volume terms domestically, recording 9.3 million units sold last year. Looking ahead, however, hand care products are forecast to register the most growth in Australia from 2019-2024, with a CAGR of 4.3%.

Facial care and depilatories categories are in second place for future growth, each with a CAGR of 1.9%. Per capita consumption of skincare in Australia is much higher in comparison to global and regional averages, added Globaldata. In 2019, it stood at 4.9 units, compared to 2.1 units in the Asia Pacific and 2.7 units at global level.

“Rising awareness among the Australian consumers about harmful effects of synthetic ingredients on skin has led to surge in demand for skincare products that claim to be free from chemicals and are safe. The trend is expected to increase innovation in face care, hand care and body care products driving further uptake in the coming years,” said Anchal Bisht, Consumer Analyst at GlobalData.

L’Oréal, Nature Cosmeticos and Procter & Gamble were the top-selling firms in the Australian skincare sector in 2019. More specifically, Aesop and Nivea were the leading brands in Australian skincare in value terms last year. Meanwhile, private labels are set to grow at a higher CAGR than the brands in the sector.

“Emergence of natural skincare products formulated with plant based ingredients is significantly influencing consumer demand. Consumers are taking into consideration the social and environmental outcomes of their purchases and are seeking products with natural ingredients which are portended to drive the Australian skincare sector growth going forward,” said Bisht.

SEE ALSO : Australia’s Super Retail Group to raise $203m in funds

As for where Australians prefer to by their skincare, hypermarkets and supermarkets were the leading distribution channels, with a value share of 31.7% in 2019.

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