Australian make-up sector to grow 4.6% annually to 2026: GlobalData
The Australian per capita expenditure on make-up reached $15.2 in 2021.
Australia’s make-up market is expected to grow at an annual growth rate of 4.6% from 2021 to 2026 driven by the lifting of most of the pandemic measures, enabling consumers to leave their homes.
In a report, GlobalData said the Australian per capita expenditure (PCE) on make-up rose to $15.2 in 2021 from $10.3 in 2016, exceeding the regional and global averages of $2.4 and $2.9 respectively.
By 2026, the PCE on make-up is expected to reach $17.7 when the economy and health situation recovers.
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“With most COVID-19 restrictions out of the way, Australians are engaging in more out-of-home activities. This spurred the demand for colour cosmetics in the first half of 2022,” said Bobby Verghese, consumer analyst at GlobalData.
“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 second half of the year,” Verghese added.
The analyst also noted that as inflation constrains the consumer purchasing power, retailers offering discounts, special offers, and private labels will benefit as the customers turn into bargain hunters.
Verghese added that the gender diversity theme in the sector will gain ground with market leaders expected to launch more gender-neutral make-up products as the men’s make-up market gains traction.