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Australian basic cosmetics market trends

Product DB australia Eunju Jeong, Sydney Trade Center 2021-10-27 Source: KOTRA
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Keyword #australia #Export #Trade #cosmetics #skin care #Basic cosmetics

- Australian consumers are spending more on skincare than makeup due to the coronavirus pandem
ic -
- Amid competition between various brands , the market size in 2021 will grow by 5% compared to t
he previous year -
- K Beauty , which has emerged as a major export product after the Korea-Australia FTA , is narrowi
ng the gap with the 3rd and 4th largest importing countries -
Product name and HS code

Basic cosmetics (HS code: 330499)
HS code classification of Australian cosmetics
HS Code Item name
beauty or makeup products
3304 (Excluding medicines, including sunscreen/tanning/manicur
e/pedicure products)
3304.10 lip makeup products
3304.20 eye makeup products
3304.30 Manicure , pedicure
https://dream.kotra.or.kr/kotranews/cms/news/actionKotraBoardDetail.do?SITE_NO=3&MENU_ID=430&CONTENTS_NO=1&bbsGbn=254&bbsSn=… 1/12
3304.91 Compressed or powdered powder

3304.99 All cosmetics except makeup , manicure/pedicure, and powd
er
Source : Australian Border Force
Market size and trends
According to Euromonitor, as of 2020, the Australian basic cosmetics ( limited to facial care , excluding
body care and others ) market size is 2.264 billion Australian dollars ( approximately 1.9409 trillion wo
n ) , and lotions and treatments are 1.3685 billion Australian dollars . It accounts for 62% of the total in
dollar terms . The second largest product is face wash, worth 582.5 million Australian dollars, accounti
ng for 27% of the total, and acne care , lip care , mask pack , and toner account for the remaining 11%
of the market .
Market size according to Australian basic cosmetics classification ( as of 2020 )
Source : Euromonitor
Australian basic cosmetics consumers invested more in skin care than makeup from early 2020 to 2021
as they spent more time at home due to the coronavirus. Naturally, cosmetics companies did not hesit
ate to launch new basic cosmetics to reflect these needs, and although offline shops were closed, sale
s and promotion activities were actively carried out through online and social network channels.
Reflecting this, Euromonitor predicted that the Australian skin care market (including basic cosmetics
and body care) will grow at an average rate of 6% over the next five years from 2020. The Australian ski
n care market, worth 2,858.3 million Australian dollars in 2020, is expected to exceed 3 billion units in 2
021 and reach 3,846.7 million Australian dollars in 2025.
Australian skin care market size trend and outlook
(Unit: million Australian dollars)
The main trends related to basic cosmetics in Australia are ‘smooth skin with a bright tone’ and ‘no ad
dition of chemical ingredients’. In particular, local interest in K-beauty products is growing among Kor
ean women with porcelain-like skin, and Korean basic cosmetics are evaluated as products with innov
ative technologies as well as new ingredients. In addition, cosmetics that do not contain ingredients s
uch as parabens , sulfate, and alcohol along with the phrase 'Free from~' can be easily found in various
distribution stores, and if they do not contain animal ingredients, they are promoted as vegan.
Basic cosmetics for light-toned skin distributed in Australia
Source: MECCA
Sukin , Australia's leading natural drugstore brand, has begun applying carbon neutral and biodegrad
able standards to its products. Sukin's motto is 'beauty that does not harm nature' and its products ar
e 100% vegan and has declared and implemented carbon neutrality since its launch in 2007. Sukin's c
arbon neutrality is a method of offsetting carbon emissions from business activities by investing in win
d and solar power generation projects in China and India. In addition, through the Sukin This reflects t
he sustainability trend not only in the cosmetics industry but across all industries in Australia. The Aus
tralian government is changing policies and regulations to reduce the use of plastic packaging, and Au
stralian consumers want to purchase and use eco-friendly products even if they pay more.
Australia Sukin’s sustainability-applied marketing activities
Source : Sukin website

Tariff rates and certifications
Australia's basic tariff rate on basic cosmetics is 5%, but on Korean products it is 0% due to the conclus
ion of an FTA between the two countries.
There is no separate certification for imported basic cosmetics in Australia, but depending on the ingre
dients and functionality of cosmetics, caution is required as ingredient or functionality evaluation may
be required by the Australian Industrial Chemicals Introduction Control System (AICIS) and the Austral
ian Therapeutic Goods Administration (TGA).
AICIS (Australian Industrial Chemicals Introduction Scheme) is Australia's industrial chemical introduc
tion management system . This is a system that was revised on July 1, 2020, and even our export comp
anies and buyers are having difficulty adapting to it, so sufficient consultation, research, and preparati
on are necessary before exporting. First, you must check through AICIS whether the cosmetics you wis
h to export meet the standards set by Australia for each ingredient contained in the product, not as a fi
nished product, and whether the ingredients are already registered.
In this case, if it is a natural ingredient and meets the legal definition of an unprocessed chemical occu
rring in the natural environment, it does not need to be separately registered with AICIS. Other ingredi
ents must be reported or evaluated by ingredient when necessary, but more stringent standards may
apply for chemical ingredients that have never been introduced to Australia. For example, if you want
to export a product that contains ingredients that are patented in another country or contain natural i
ngredients that do not exist in Australia (which have undergone an extraction process that causes che
mical changes), you will need to be more prepared. In general, to check whether an ingredient is requi
red to be reported, the ingredient is searched in the AICIS inventory using the ingredient's unique CAS
registration number. At this time, there are cases where search is not possible for various reasons. In th
is case, you can individually request CAS number and name from AICIS.
Note*: AICIS website: https://www.industrialchemicals.gov.au/
The Australian Medical Products Agency (TGA) manages not only medicines and medical devices, but a
lso cosmetics and sunscreens with therapeutic effects, so if applicable, the product must be registered
in accordance with TGA's regulations before being imported and distributed.
Import trends
Looking at the trend of Australian basic cosmetics imports over the three years from 2018 to 2020, imp
orts increased compared to the previous year in 2019, but decreased by 6.4% in 2020 due to the impac
t of Corona, reaching $609 million. As of 2020, the ranking of importing countries is the United States,
France, Thailand, China, and Korea. Imports from the United States and France account for 45-48% ov
er the past three years, accounting for about half of imported cosmetics. Among Australia's top 10 cou
ntries that import basic cosmetics, the countries whose imports increased compared to the previous y
ear despite COVID-19 in 2020 are Thailand, Korea, and Germany. Korea exported $38 million in 2020, a
n increase of 5.0% compared to the previous year.
Trends in Australian basic cosmetics imports from 2018 to 2020
(HS code : 330499, unit : ten thousand dollars , %)
rank import amount Share Change ra
ing nation te
2018 2019 2020 2018 2019 2020 '19 vs '20
entire 63,427 65,037 60,897 100.0 100.0 100.0 -6.4
One USA 18,619 19,464 18,478 29.4 29.9 30.3 -5.1
2 france 11,217 11,450 11,012 17.7 17.6 18.1 -3.8
3 thailand 3,818 3,664 3,886 6.0 5.6 6.4 6.0
4 china 4,450 4,755 3,877 7.0 7.3 6.4 -18.5
5 korea 3,070 3,619 3,799 4.8 5.6 6.2 5.0

6 uk 3,242 3,742 3,179 5.1 5.8 5.2 -15.0
7 germany 2,349 2,486 2,774 3.7 3.8 4.6 11.6
8 Canada 2,058 2,281 2,187 3.2 3.5 3.6 -4.1
9 New Zealand 3,308 2,332 1,845 5.2 3.6 3.0 -20.9
10 japan 2,224 2,318 1,593 3.5 3.6 2.6 -31.3
Source : Global Trade Atlas
After the conclusion of the Korea-Australia FTA in December 2014, Korea's basic cosmetics imports con
tinued to increase from 2015 to 2020. Looking at the graph below, you can see that there has been no s
ignificant change in the rankings over the past 6 years, but when comparing 2015 and 2020, the gap be
tween Korea's imports and those of Thailand and China has gradually narrowed. As of 2015, Korea's b
asic cosmetics import amount was $13.02 million, but in 2020 it increased by a whopping 191.8% to $3
7.99 million.
Changes in import amount of Australia's top five basic cosmetics importing countries (2015-2020)
(HS code : 330499, unit : 10,000 dollars )
Note : Rankings are as of 2020

Source : Global Trade Atlas
Distribution structure
According to Euromonitor, about 77.8% of skin care, including basic cosmetics, in Australia is sold thro
ugh offline channels and 22.2% through online channels. In offline channels, sales in drugstores/phar
macies (Priceline, Chemist warehouse, etc.) account for nearly 30%, and large supermarket channels s
uch as Woolworths and Coles account for approximately 20%. Sales through cosmetics specialty store
s and department stores accounted for 9.7% and 13.5%, respectively. Meanwhile, the proportion of sal
es through e-commerce was 17.5%, which was larger than the proportion of sales at department store
s.
Distribution proportion of basic cosmetics in Australia ( as of 2020 )
Even before the outbreak of COVID -19 , one or more cosmetics stores selling mainly Korean cosmetics
began to open in areas with dense Asian populations . This is good news for K- beauty followers as wel
l as Korean residents who were unable to easily purchase popular brands in Korea . LA COSMETIQUE, a
cosmetics specialty store that started with one Sydney store , has now expanded to four stores and co
ntinued sales through its online website during the COVID -19 lockdown . The main products sold are
Korean and Japanese cosmetics, and some French brands are also sold . According to the store manag
er, the main customers are still Asian, but there are also quite a few non-Asian customers visiting the s
tore in central Sydney .
La Cosmetic website and stores in Australia
Source : La Cosmetic website

Competitive trends
Based on sales amount, Australia's basic cosmetics market is divided into a market for premium produ
cts sold through department stores and cosmetics specialty stores, and a market for general products
sold in drug stores, large supermarkets, and pharmacies. The top three competitors in order of market
share are L'Oréal Australia Pty Ltd (11.8%), Estée Lauder Pty Ltd (8.0%), and McPherson's Consumer Pr
oducts Pty Ltd (5.3%). Many other multinational and Australian cosmetics companies are competing.
McPherson's Consumer Products is an Australian company specializing in FMCG and owns skin care br
ands A'kin and Dr. LeWinn's. In addition, BWX Ltd, an Australian company with a high market share, dis
tributes American natural cosmetics brands such as ANDALOU and Mineral Fusion along with Sukin, a
representative drugstore natural skin care cosmetics brand, in Australia.
Basic cosmetics competitors with top market share in Australia and product examples
Enter L'Oréal Australia Estee Lauder nsumer McPherson's Co
prise Product Aesop BWX
s
brand L'Oréal Estee Lauder Dr. LeWinn's Aesop Sukin
produ
ct
exam
ple
Source : Each company’s website

Due to COVID-19 in 2020, department stores and cosmetics specialty stores suspended operations and
relied solely on online sales, while drug stores, large supermarkets, and pharmacies were classified as
essential retail stores and were able to continue operating. Swisse, a leading Australian health supple
ment company, is targeting consumers pursuing In-N-Out beauty by launching a skin care product line
in 2021. Large supermarkets such as Woolworths have focused more on inventory management on ski
n care product shelves targeting female customers purchasing groceries during the coronavirus lockd
own.
A basic cosmetics line newly launched by Australian Swisse.
Source : Swisse website

implication
The Australian basic cosmetics market is not led by a monopoly company or brand, but rather various
companies , brands, and products are competing against each other. While the Australian beauty mark
et was polarized a few years ago between large supermarket /drugstore brands such as L'Oréal and pr
emium brands such as Estee Lauder , we have now entered an era where it is possible to easily purcha
se and sell a variety of products from around the world . As Australian consumers become more intere
sted in skin care, demand for various brands has increased.
If you are planning to export basic cosmetics to Australia, you must consider that the Australian marke
t is significantly different in size from the markets in North America, Europe, and Asia. The total popula
tion of Australia is 25.7 million as of 2021, and the female population is 12.79 million (as of 2019), whic
h is less than half of Korea's 25.86 million. As such, the cosmetics market itself is small, supermarkets f
ocus on convenience, brand awareness, and low prices rather than variety, and department stores hav
e been targeting conservative consumers for generations, so it is difficult to target this channel from th
e beginning. However, the emergence of distribution stores specializing in Korean cosmetics that cann
ot be found in these stores is hopeful for Korean exporters. These stores are basically somewhat flexibl
e in importing and displaying various Korean cosmetic products in their stores. The second thing to co
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nsider is seasonality. Australia's peak summer season is between December and February, and mid-se
ason sales take place nationwide around June, the end of Australia's fiscal year, so export and sales str
ategies can be developed taking these factors into account.
K-beauty is now leading trends around the world, and with the expansion of online marketing, the nu
mber of consumers who want to experience new K-beauty trends is increasing in Australia. In an interv
iew with KOTRA's Sydney Trade Center, a local cosmetics buyer said that Korean basic cosmetics have
already been proven in terms of product quality, and that they are willing to receive new products and
import products that can provide differentiation locally. KOTRA Sydney Trade Center is actively suppor
ting Korean export companies through trade missions, business partner connection support, and parti
cipation in local beauty fairs and exhibitions to help Korean cosmetics expand their base in the Austral
ian market .
Source : Euromonitor, Inside Retail, Inside FMCG, each company's website, KOTRA Sydney Trade Cente
r interview, and internal data synthesis
<Copyright: ⓒ KOTRA & KOTRA Overseas Market News>
In the case of KOTRA's copyrighted work (Australian Basic Cosmetic Market Trends), it can be used in
accordance with the conditions of 'Public Nuri Type 4: Source indication + Prohibition of commercial use +
Prohibition of modification'. However, photos and images cannot be used because the copyright belongs to
a third party.
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3/8/24, 9:35 AM Product DB - KOTRA Overseas Market News Product/Industry > Product DB > Product DB

Australian basic cosmetics market trends

Keyword #australia #Export #Trade #cosmetics #skin care #Basic cosmetics

Product name and HS code

3304.91 Compressed or powdered powder

Australia Sukin’s sustainability-applied marketing activities

Source : Sukin website

5 korea 3,070 3,619 3,799 4.8 5.6 6.2 5.0

Note : Rankings are as of 2020

Source : La Cosmetic website

Source : Each company’s website

Source : Swisse website

<Copyright: ⓒ KOTRA & KOTRA Overseas Market News>

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5 Status of skin care cosmetics in Indonesia

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