COSMETICS AND TOILETRIES
Australia
Overview
| x | 2004 | 2005 | 2006 |
| Total Market Size | 1008 | 1045 | 1080 |
| Total Local Production | 568 | 581 | 600 |
| Total Exports | 53 | 57 | 60 |
| Total Imports | 493 | 521 | 540 |
| Imports from the U.S. | 142 | 155 | 161 |
Exchange rates
2004 0.7364
2005 0.7606
2006 0.7569
(Australian Bureau of Statistics)
Australia's cosmetics and toiletries market offers considerable opportunities for American exporters as Australian women and men devote more attention to personal appearance. The cosmetic and toiletries market in Australia is valued at US$1.045 billion, with the market for skin care alone at US$342 million.
Skincare accounts for 33 percent of retail sales in this sector. The increased popularity of age-defying and/or appearance enhancing products is driving this growth. As a result of the Free Trade Agreement between the United States and Australia, the general import duty on cosmetics and toiletries decreased from five percent to zero on January 1, 2005.
Best Prospects/Services
Future growth will take place in two main areas: skincare and haircare. Prospects are favorable for manufacturers that produce skincare products that preserve and protect the skin, rather than just altering cosmetic appearance. These sales are not limited to women’s skincare lines. Men’s skincare products, such as moisturizers, are gaining in popularity.
The hair care sub-sector is also significant, with the increased popularity of high priced colorants, including the men’s market, contributing to growth. Prospects are also promising for salon products promoted by the support of a world-renowned hairdresser or hair care company.
Opportunities
U.S. cosmetics and toiletries enjoy considerable interest in the Australian market, with distributors seeking innovative products. The market offers opportunities for products with unique benefits, while a continuing demand for products incorporating herbal and botanical extracts, plant acids, proteins, etc. also creates favorable prospects for U.S. suppliers.
Standards
Australia offers an established regulatory environment regarding cosmetics ingredients and labeling. Primarily, ingredient safety falls under the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), which maintains a register of all ingredients permitted for use in a wide range of products.
Suppliers should ensure that their cosmetic product does not fall within the definition of a therapeutic good otherwise the goods must follow the requirements of the Therapeutic Goods Act (namely, listing or registration on the Australian Register of Therapeutic Goods). Therapeutic goods are products represented as preventing, diagnosing, curing or alleviating a disease ailment, defect or injury in persons; or influencing, inhibiting or modifying a physiological process.
The main area of interface between a cosmetic and a therapeutic good lies with the inclusion of sun protection products. Sunscreens that claim to prevent skin cancer must have at minimum a SPF value of 30 plus. Items containing a sunscreen protection factor (SPF) greater than 4 are currently classified as therapeutic goods. However, the Therapeutic Goods Administration (TGA) is currently reviewing this classification of a therapeutic good as it relates to sunscreens, and may allow an SPF value of 15 or below to be classified as cosmetics, not as therapeutic goods.
Resources
International Beauty Expo www.internationalbeautyexpo.com.au
Pharmacy Guild of Australia www.guild.org.au
Therapeutic Goods Administration www.tga.gov.au
U.S. companies seeking information on the Australian cosmetics and toiletries market are encouraged to contact Annette Ahern at the U.S. Commercial Service in Melbourne (email: annette.ahern@mail.doc.gov )