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

In Australia, the cosmetics and toiletries sector is valued at approximately one billion (USD).

Australians will continue to purchase cosmetics and toiletries despite the current world economic crisis. Sales volumes, however, have decreased as consumers are now purchasing individual cosmetics and toiletries rather than complete ranges. As cosmetics are somewhat recession-proof, we anticipate a trend toward smaller purchases per client. According to industry analysts, the cosmetics and toiletries sector is expected to grow two percent annually, through 2010.

Imports supply nearly 50 percent of the cosmetics and toiletries market, with 30 percent of imports originating from the United States. A significant sub-sector is color cosmetics, which accounts for 45 percent of retail sales. The Australia-U.S. Free Trade Agreement has eliminated the import duty on cosmetics and toiletries.

Best Prospects

The three sub-sectors experiencing growth are color cosmetics, hair care, and beauty salon products.

Australians are concerned with their wellness and seek products that prolong a youthful appearance. Color cosmetics that offer appearance-enhancing benefits, along with anti-aging properties, are in a strong position for continued growth. Additionally, there is increasing demand for colorants to mask gray appearance, including colorants for the men’s market.

Prospects are also promising for professional hair products that world-renown hairdressers or hair care companies promote. Growth in the beauty salon market is primarily due to professional-based regimes that are increasingly popular with Australian consumers.

Opportunities

Over the next year, the Australian cosmetic and toiletries market will continue to provide opportunities for U.S. suppliers.

In Australia, cosmetics and toiletries distributors are seeking novel brands and products with unique benefits. U.S. companies looking to enter this market should offer unique innovative products.

Standards

Information on standards is available at http://www.nicnas.gov.au and http://www.tga.gov.au

Trade Events

International Beauty Expo
Melbourne – April 4-5, 2009
Sydney - TBA (usually August)
http://www.internationalbeautyexpo.com.au/