Australians focus on value for money in beauty products

This underscores the ongoing economic challenges impacting consumer behavior.

The "pursuit of value" megatrend is now shaping Australia’s beauty and personal care market, according to Euromonitor International.

From 2022 to 2027, Australasia is expected to lead in per capita consumer spending on this trend, underscoring the ongoing economic challenges impacting consumer behavior.

About 41% of Australians prioritised value for money in skincare in 2023, indicating a shift towards more discerning purchasing habits. Consumers are now more discerning, evaluating products based on overall user experience to determine their worth. 

The popularity of multifunctional products, particularly those with SPF, highlights a growing consumer preference for versatile items. As the cost of living rises, Australians are opting for fewer, more functional products suitable for daily use. In 2023, 23% of consumers prioritise sun protection features, up from 17% in 2021. 

The trend towards "skinification" has driven innovation in sun care, with local brands like Naked Sundays and Ultra Violette leading the way with products that combine sun protection with skincare benefits. Online beauty retailer Adore Beauty has also expanded its SPF offerings with a new collection under its AB Lab label.

Consumers are increasingly seeking affordable alternatives to premium beauty products, boosting the demand for "dupe" items. Brands like MCoBeauty are offering lower-priced dupes of high-end products, such as Flawless Glow and Xtend Lash Mascara, which are gaining traction. Kmart's OXX Cosmetics is also tapping into this market with affordable versions of premium brands.

Budget beauty lines are also moving into grocery stores and hypermarkets, changing the retail landscape. Woolworths and Coles are leading this shift, with new launches including science-led skincare brands and popular budget-friendly products.