AUSTRALIA SKINCARE PRODUCTS MARKET ANALYSIS

Market Challenges And Opportunities

Australia Skincare Products Market: Drivers

• Rise in online presence skincare product: The internet and social media, in particular, have the potential to boost the sales of skincare, as consumer recommendations and influences make them a powerful marketing platform. The market related cleansers, moisturizers, body lotion, body wash, and so on, with leading brands L'Oréal, Unilever, and Estee Lauder all turning to Facebook, Instagram, and YouTube for new launches and customer engagement with tutorials and promotional campaigns. This is expected to drive the growth of the market. For instance as per Australia government E-commerce is expected to be the fastest-growing sales channel in the beauty industry, with a projected growth rate of 12% per year between 2022 and 2027.

• Increasing concerns related to skin: One of the primary reasons for the growth of the market is the increasing awareness of the adverse effects of chemical substances on the skin. These effects can lead to skin irritation, allergic reactions, and dullness. Awareness of the advantages of natural skin care has encouraged consumers to look for products that are both eco-friendly and sustainable, as well as those that offer more product ingredient transparency.                            

Australia Skincare Products Market: Restraints

• Increasing presence of counterfeit products: The pandemic has completely changed the way people shop for personal care products. Online shopping has become increasingly popular among people. With products being available at the click of a button, counterfeiting also increased at a lightning speed. This is expected to hinder the market growth. Environmental concern associated with the plastic packaging of cosmetic products is also expected to hinder the market growth.
• Counterbalance: To control counterfeiting of products, awareness needs to be created among the masses about these products. Also, the protection of necessary intellectual property rights needs to be maintained and using technology to safeguard the brand should be undertaken. In case of packaging of cosmetics products, eco-friendly bags should be provided to the customers of the brand.

Australia Skincare Products Market: Opportunity

• Increasing demand for personalized skincare products: The growing popularity of personalization and customization of skincare products is expected to provide lucrative growth opportunities over the forecast period. Players operating in the market are focusing on developing products with multifunctional properties to cater to the growing demand. For instance, Sunscreen specialist, Supergoop offers an SPF 40 sunscreen-serum, hybrid formulated with vitamin C and hyaluronic acid. Supergoop’s Daily Dose Vitamin C + SPF 40 ensure skin benefits from the ingredient and stays protected from the sun.

• Consumer preference for prebiotics and probiotics products: Increasing launch of prebiotics and probiotics products is expected to support the market growth over the forecast period. For instance, in January 2021, Esmi launched the probiotics skincare range under Mylck. Esmi’s Skin Mylck range uses a concentrated dose of a probiotic function called a ‘lysate’, which offers an ideal environment for skin to thrive when compromised by outside elements and bad bacteria.