The Australian cosmetics and toiletry retailing industry in Australia involves the sale of thousands of cosmetic and toiletry brands. In 2013-14, industry revenue is expected to grow by 2.9 per cent to $3.6 billion, according to a new IbisWorld report.
This compares with revenue of $3.1 billion in 2008-09, equating to annualised growth of 3.2 per cent over the past five years.
The industry has grown modestly over the past decade, boosted by healthy household consumption expenditure on cosmetics, perfumes, soap products and other toiletries.
IbisWorld industry analyst, Arna Richardson, says the industry’s performance is increasingly influenced by intensifying competitive pressures, both within the industry and from a growing number of external competitors.
“Growth in 2013-14 is expected to be marginally below this average because the weaker economic environment may mean cosmetic and toiletry retailers will need to cater to consumers’ desire for functionality and value,” says Richardson.
The industry exhibits a low level of market share concentration. The only major player is Australian Pharmaceutical Industries with its Priceline banner.
Having successfully evolved in line with changing consumer preferences, including the growing demand for environmentally ethical products, the cosmetics and toiletries are expected to continue to grow at a modest pace over the next five years. Technological advances will remain a key driving force, as will the willingness of Australian consumers to buy an increasing range of complex formulated products and green products, which are expected to become more mainstream.
Continued development of fusion and eco-friendly lines will help stimulate demand for industry products. Furthermore, changing community attitudes to skincare and holistic wellness will spur demand.
At the same time, industry growth will be constrained by the growing competitive forces affecting the industry’s operating environment. This includes the growing number of pure-play cosmetic e-tailers whose business models rely on aggressive price offerings and the ability to offer a wider array of international brands.
For more information, visit IbisWorld’s Cosmetic and Toiletry Retailing industry in Australia industry page.
