Australian make-up market will accelerate by 4.6% CAGR through 2026, forecasts GlobalData

With Australia lifting most of the COVID-19 pandemic control measures, consumers have begun leaving their homes more often, thereby stimulating demand for color cosmetics. Against this backdrop, the Australian make-up market is set to register a compound annual growth rate (CAGR) of 4.6% during 2021-26, forecasts GlobalData, a leading data and analytics company. GlobalData’s report, “Australia make-up – Market Assessment and Forecasts to 2026,” reveals that the lip make-up category will register the fastest value over 2021-26, followed by nail make-up.

Bobby Verghese, Consumer Analyst at GlobalData, comments: “With most COVID-19 restrictions out of the way, Australians are engaging in more out-of-home activities. This spurred the demand for color cosmetics in the first half of 2022. 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 year’s second half. Moreover, spiraling inflation, triggered by the Russia–Ukraine conflict is constraining consumer purchasing power. As more consumers become bargain hunters, retailers offering discounts and special offers and private labels are set to benefit.”

Australian per capita expenditure (PCE) on make-up increased from $10.3 in 2016 to $15.2 in 2021. This surpassed the regional average of $2.4, and the global average of $3.9 by a huge margin. As the economic and health crisis dissipates, Australia’s PCE on make-up will surge to $17.7 in 2026, according to GlobalData.

​Hypermarkets & supermarkets were the leading distribution channel in the Australian make-up market in 2021, followed by department stores and health & 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.

Verghese concludes: “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 GenZ cohorts will propel the adoption of sustainable ingredients and packaging, including refillable make-up containers. “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.”