For further information on the Cosmetics industry in Australia, please contact Commercial Specialist Annette Ahern, U.S. Commercial Service Melbourne on Tel: (+61-3) 9526-5928, Fax: (+61-3) 9510-4660, Email: Annette.Ahern@N0SPAM.mail.doc.gov .

Overview

The value of Australia’s cosmetics and toiletries market exceeds US$1 billion. Imports supply nearly 50 percent of the market. The U.S. holds a 31 percent share of the import market. Other major suppliers are France (18 percent) and the United Kingdom (10 percent). The most significant sub-sectors are color cosmetics and hair care, which are valued at US$582 million and US$250 million, respectively.

Driving growth in this market is the men’s and women’s concern about their personal appearance. In the past twelve months, personal products and hair care continue to experience the most growth, with sales growth in each of these sub-sectors exceeding 7 percent. As a result of the Free Trade Agreement between the United States and Australia, cosmetics and toiletries enter Australia free of duty.

Best Prospects

Future growth is in two main areas: personal products and hair care. U.S. imports of personal products including bath products and depilatories increased 16 percent in 2007. This growth is due, in part, to an increase in sales of established depilatory products, but more importantly, women are increasingly purchasing liquid hair removers and women’s razors. There is also a growing popularity among men for premium shaving systems.

The colorant market is the prime driver in the hair care sub-sector, with considerable growth in premium color products for both women and men. Often world-renown hairdressers are integral to new entrants entering the Australian hair care market, offering endorsement to these ranges. Australian consumers are keen to use brands associated with these hairdressers, many of whom are celebrities in their own right.

Opportunities

U.S. companies looking to enter the Australian cosmetic and toiletries market should offer innovative products, thus ensuring an entry point into this market. Distributors in Australia seek novel brands and, in particular, products with unique benefits. Success in the Australian market depends on the ability to secure a particular niche in the market e.g., organics, hypo-allergenic products. Products incorporating herbal and botanical extracts, plant acids, proteins, etc., are expected to experience strong growth in line with fashion trends that show a preference for natural or organic products.

Standards

Australia offers an established, regulatory environment regarding cosmetics ingredients and labeling. Ingredient safety (under the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), administered by the National Occupational Health and Safety Commission) requires approval for a wide range of substances, including ingredients in cosmetics.

Cosmetic and toiletry products are also subject to approval by the Therapeutic Goods Administration (TGA), of the Australian Government. There are many issues concerning the registration process. Suppliers must demonstrate that a product is not a therapeutic good, otherwise the release of the product in Australia must follow the requirements of the Therapeutic Goods Act. For example, some sunscreens require registration with the Australian Register of Therapeutic Goods.

Resources

Trade Events

International Beauty Expo
Melbourne – April 12-13, 2008
Sydney - August 30-31, 2008
http://www.internationalbeautyexpo.com.au/

Associations

Pharmacy Guild of Australia http://www.guild.org.au/
Therapeutic Goods Administration http://www.tga.gov.au/