Product personalization to drive Australia make-up market at 3% CAGR through 2025, says GlobalData

Make-up demand in Australia is primarily motivated by minimalistic and personalized products. Subsequently, the market is projected to grow at a compound annual growth rate (CAGR) of 3% from A$1bn (US$0.7bn) in 2020 to A$1.2bn (US$0.9bn) in 2025, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Australia Make-up – Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the lip make-up category, which is forecast to register the fastest value CAGR of 3.4% during 2020–2025. It is followed by eye make-up, which is expected to record a CAGR of 3% during the same period.

Sukanyashri Kabali, Consumer Analyst at GlobalData, says: “Australian consumers are more inclined towards minimalistic and natural-looking make-up products. Consumers demand personalized make-up products and are thus urging the manufacturers to launch products tailored to their specific requirements. For example, Rare Beauty made an entry in Australia with its collection of 48 different shades of foundations and concealers to match the natural skin tones of people of all colors.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Australian make-up market in 2020, followed by department stores and health & beauty stores.

The per capita expenditure (PCE) of make-up in Australia decreased from US$29.2 in 2015 to US$27.9 in 2020, which was higher than both the global level (US$7.5) and the regional level (US$4.3). However, the PCE of make-up in Australia is expected to increase and reach US$32 in 2025.

​The Estee Lauder Companies Inc., L’Oréal S.A. and Revlon, Inc. were the top three companies in the Australian make-up market by value in 2020, while Revlon and Maybelline were the leading brands.

Ms. Kabali concludes: “Australians are increasingly concerned of the harmful chemicals and synthetic ingredients used in cosmetics and are thus inclining towards ‘natural and organic products. This in turn is driving the demand for products with ‘free-from’ claims. Additionally, rising eco-consciousness has led to increased demand for sustainable and biodegradable packaging for make-up products.”

The post Product personalization to drive Australia make-up market at 3% CAGR through 2025, says GlobalData appeared first on GlobalData.