A few figures first! According to the survey of the Franco-Australian Chamber of Commerce and Industry, after a few years of decline, the Australian beauty sector was again on an upward trend in 2015 thanks to both perkier consumer morale and a rise in their disposable income. The sector’s turnover is estimated at EUR 637.8 million (AUD 945 million). The market is expected to grow annually by 1.2% from 2016 to 2021, driven by the popularity of innovative, multifunctional and natural & organic products.

The share of imports is very important since it represents 75% of the market demand. France is Australia’s first supplier in perfumes and the second in cosmetics. According to recent studies, competition is expected to increase even more due to the growing interest of consumers for mass market products. Among the most significant market trends, anti-ageing cosmetic products are very popular among the Baby Boomer generation. Demand is also on the rise for so called "holistic" products and organic and natural products. Multifunctional products or "DIY" beauty solutions are also increasingly popular.

The Australian beauty market’s turnover is estimated at EUR 637.8 million (AUD 945 million).

All surveys highlight the fact that organic products are truly one of the strong points of "Made in Australia" cosmetics and obviously a key argument used by local brands to conquer export markets.

Enthusiastic brands

The dynamism of the market is confirmed by Australian brands themselves. A proof of that is the performance of companies like Nutrimetics, SelfCare Corporation, Napoleon Perdis, Ere Perez, Inika, Natio or Sugar Baby.

"The dynamism of the Beauty sector is truly perceptible on Australian and New Zealand markets," confirmed Olivia Courtman, Product & Accessories Sourcing Specialist at Nutrimetics, a company that produces and distributes via its home sales network (40 000 beauty advisors) skincare products (80%) and make-up products, and that continues - no surprisingly - to enjoy a steady rise in its sales of colour cosmetics.

The story is the same with the brand Ere Perez: "We are on a + 20% yearly trend," highlighted Hiram Martinez, CEO. As for Sonia Amoroso from SelfCare Corporation (40 million dollars in revenue), specializing almost exclusively in the production of skincare products, "with such high market demand, I was actually unable to allow myself a holiday break these past months!"

As for Napoleon Perdis, who last year refocused on the Australian market, now supplying over 875 stockists, David Jones and Myer, its own 85 stores are working at full capacity.

"There has been a constant influx of new brands in to an already highly competitive market,” explained Petra Bergman, PR & Marketing Manager- Mann & Noble, “giving the consumer infinite choice which in turn means beauty brands are constantly challenged to find new ways to stand out from the pack and connect with consumers".

"We are about to launch 70 new products with our Inika brand we acquired two years ago," explained Lino Sinni, Marketing Director, Total Beauty Network.

New Zealand bets on digital

On the side of New Zealand the beauty market is now worth EUR 76 million (NZD 1.25 billion). From 2015 to 2018 a 1.2% growth in volume is expected thanks to the popularity of multifunctional, organic and natural, "DIY" products and sets (gift boxes). Imports account for 90% of the market. France is the leading perfume supplier and the country’s third cosmetics supplier. Despite the country’s geographical isolation and relatively small number of inhabitants, most major beauty brands are represented and their product range is varied.

The economic fundamentals of New Zealand are strong, GDP per capita is catching up with that of other major Western European economies (with more than USD 31,000 in 2013) and unemployment fell to its lowest level since 2009 (5.8% of the working population in 2015).

Note that New Zealand launched in 2005 a long term reform (through 2020) on its digital economy. And that in 2010 the country joined the top 10 of the most open economies to digital innovation. Indeed, due to its geographical remoteness, the Internet appears to be the best source for development. The government is investing heavily to develop its infrastructures: between 2008 and 2015 nearly NZD 4 billion (2% of New Zealand’s GDP) were allocated by the State to develop infrastructures solely dedicated to digital economy.

A common point to all these Australian and New Zealand brands, most of them rely on Asian sub-contractors (China) for their formulas and packagings. On the other hand they are thirsty for innovation and are constantly "on the look-out".

Richer consumers

Australian consumers enjoy spending. They have a high purchasing power, which has increased by more than 43% in 15 years, 15% higher than that of French consumers. Household debt is also high but domestic consumption is driving the country’s growth. Consumers are demanding, increasingly sophisticated and aware of European trends.

In Australia the purchase decision is determined primarily by the price tag. In addition, the growing interest of Australians for quality, and the growing impact of fashion phenomena fuelled by the media and advertising make "genuine" products and branded and high-range products particularly popular. Australian consumers - so-called early adopters, fond of new technologies - love novelties and alternative products. Like other people in the world, Australian and New Zealand consumers are increasingly connected and retailers of consumer goods must face strong competition from online players.

Luxury at the forefront!

In general, the premium sector is demonstrating unprecedented economic dynamism. Global market sales in 2012 were already worth some EUR 210 billion, a quarter of which was generated by French luxury industries.

This leading position is being confirmed by exceptional sales increase across all luxury sectors. Indeed, the rising number of foreign tourists from Asia as well as their taste for luxury goods is a strong growth driver for this industry. But not just tourists! It is striking, to notice, for example in Sydney, the number of Asian people who have settled in the country in recent years.

The luxury industry is expected to grow by 11.1% over the coming years.