Australian Beauty Market 2021
As the hair and beauty industry continues to grow in Australia, I have decided to take a closer look at this emerging market.
In this article, I've prepared a brief report on the Australian cosmetic market: statistics, market analysis, and forecasts.
But before that, let's look at the beauty industry in general:
Is the beauty industry growing?
Beauty is a quick-paced and highly competitive industry that's changing very fast.
In 2020-2021, two major environmental factors impacted the beauty market: 'Covid-19' and 'Sustainability'.
Covid-19 surged the use of sanitizers and self-care, while sustainability increased consumer's demand for natural cosmetics such as organic makeup, vegan lipsticks, and cruelty-free sunscreens.
Nevertheless, the global beauty industry continued to grow, valued at $500 Billion (USD) in 2020.
Moreover, this number is predicted to be $716.6 Billion by 2025 according to 'Grand View Research'.
[caption id="attachment_48834" align="alignnone" width="1000"]
Beauty market value from 2005 to 2019 - Statista.[/caption]
So... why do customers keep spending on beauty?
First of all, the beauty industry has gained a lot of popularity over the past five years, reaching a robust and permanent position in the global market.
Second, most beauty services can't be replaced by cheap internet knock-offs.
The beauty market connects people with services provided by specialist salons, and customers happily pay up.
But, the success of the beauty industry isn't just down to salons and country popularity.
It is also the rise of the gender-neutral fashion movement that spills over into the beauty and cosmetics markets.
For example, men are spending increasing time (and money) on beauty, cosmetics, and skincare treatments than ever before.
Therefore, it is only natural that the global beauty industry would see such growth.
How big is the beauty industry in Australia?
Australia is no exception to the growth of the beauty industry.
Although it has a smaller population in comparison to many westernized countries, Australians spend a good chunk on beauty imports, every year.
In fact, in 2018-2019, Australia's expenses on beauty imports stacked up to an impressive $888,405,000 (AUD).
[caption id="attachment_48833" align="alignnone" width="1000"]
Australia's beauty industry projection by 2025.[/caption]
However, that figure pales in comparison to the UK who reportedly spent over $2 billion.
The same applies to China, which topped the league beauty purchasing table with an annual spend of $13,231,829,000.
[caption id="attachment_48835" align="alignnone" width="1000"]
Beauty import spent: Australia compared to the rest of the world - Worldstopeports.[/caption]
If we focus on Australia, there's a massive difference in the beauty purchasing expenses, depending on which area the buyers live in.
Data shows that customers from Queensland, South Australia, or New South Wales shell out close to $1K per year on looking and feeling gorgeous.
However, the figure is much lower in other parts of Australia, dropping to under $500 in Tasmania and the Australian Capital Territory.
