Australian Hair and Beauty Market Continues to Grow
Is it a good time to buy or sell a beauty or hairdressing business? You bet! Whilst consumers may be cutting back on some luxuries, personal grooming is still considered a must. In fact, the beauty market has enjoyed 10 years of consistent growth and shows no signs of slowing up.
The Australian beauty market is now worth over $6.5 billion, with Australian women spending more on skincare products and makeup than most other developed countries. Sales of skincare products have been increasing by nearly 8% a year, with 25-30% growth in natural brands and dermo-cosmetics.
This impressive growth is partly due to demand by millennials for greener products and independent brands, with the launch of new products a driving force in the industry. Of course, this is a necessity in a mature market that is already saturated with products.
As consumers become more image-conscious, and the population continues to grow, we are demanding a wider range of beauty products and treatments, including higher priced services, such as skin needling, microdermabrasion, laser hair removal and more. This has definitely boosted revenue within the industry.
We have also seen a huge increase in male grooming products and services, with some salons now catering entirely to male clients.
The Australian cosmetics market is expected to hit $7.76 billion by the end of 2020. It appears to be quite unaffected by the peaks and lows of the market. Globally, the cosmetics market will sit at around $429.8 billion by 2022.
We can expect to see even greater demand for organic skincare products and cosmetics and ‘greener packaging’. Male grooming, anti-aging products and youth products will also increase in demand.
Consumers are no longer willing to just accept what they are given. They are supporting companies that are health conscious and environmentally aware, producing ethically-produced chemical free products.
Growth of Organic
Increased consumer awareness is one of the key trends driving growth in the organic beauty industry. There is concern about the long-term effects of the chemicals found in beauty products, perfume and makeup.
Skin care products are likely to dominate, claiming around 30% of the global natural beauty products market by 2024, followed by organic hair care products. The support and participation of celebrities such as Miranda Kerr (KORA Organics) and mum Therese (the Divine Company) is driving this change.