The Australian cosmetics, perfumes and toiletries industries may have faced a tough couple of years, but it is showing distinct signs of bouncing back, according to new data from IBISWorld.
Following a deflation during the period 2011-2012, the industry is now on an upturn, with IBISWorld researchers estimating the industry will achieve a 2.4 per cent year-on-year growth for 2014-2015. This is a big leap from the 0.6 per cent growth the industry experienced over the last five years through to 2014-2015.
Growth has been constrained by poor economic conditions, tightened consumer discretionary spending, heightened competitive pressures and falling retail prices,” IBISWorld analyst Arna Richardson told CosmeticsDesign.
While the industry does not make up a large part of Australia’s overall economy, the total demand for cosmetics, toiletries and fragrances should hit $AU2 billion during the 2014-2015 period.
The country has experienced gains this year in both the domestic market and from international exports. The industry is still very dependant on imports.
The turnaround is attributed to the recent strength of the Australian dollar resulting in higher levels of parallel imports, while the marketability of the Made in Australia” label has also led to market growth. The clean and green” image of many Australian companies is also likely to contribute to healthy growth levels over the next few years.
