Cosmetic and Toiletry Retailing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: April 2024
ANZSIC G4271bRevenue
$5.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
20,300
Businesses
4,580
Wages
$XXX.Xm
Cosmetic and Toiletry Retailing in Australia industry analysis
The Cosmetic and Toiletry Retailing industry sells thousands of cosmetic and toiletry brands through specialty cosmetics stores, with a constant array of new products acting as a key driving force in the industry's performance. Fusion and eco-friendly lines have stimulated demand in an otherwise mature, saturated market, as have new experiential stores. These have been designed to capitalise on cosmetics' hands-on nature and entice online shoppers back into stores. Offering associated beauty services like brow bars, hair services and make-up classes has also helped to give the industry a new service-based revenue stream and boost profit margins, which have come under pressure from rival online beauty sites offering discounted beauty products.
Trends and Insights
- The Cosmetic and Toiletry Retailing industry is one of several retail channels for beauty products. This means it operates against a highly competitive backdrop, vying with traditional department store rivals and a growing plethora of online beauty stores.
- Product portfolios are continuing to change, reflecting new markets and products like cosmeceuticals and male-only lines. Changing product portfolios also reflect an extension of the industry's consumer base in line with diversity and inclusion principles.
- The industry’s geographic distribution reflects Australia's economic, social and demographic breakdown. In line with this, the three eastern seaboard states account for over three-quarters of industry locations.
- A highly competitive backdrop characterises the industry, with cosmetics retailers competing not only against each other but also against other traditional bricks-and-mortar channels. The industry is losing sales to online retailers offering discounted beauty products and international brands.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $5.4bn in 2024.
Trends and Insights
Challenges hinder the industry's growth path
- Cosmetic retailers have contended with various challenges in recent years, including those associated with the market's mature and saturated nature.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Customisation and clean beauty trends are set to drive growth
- A growing range of green beauty products will help support revenue growth as cosmetic retailers seek to cater to consumers seeking clean and ethical beauty products in line with a greater focus on sustainability, traceability and transparency. In line with these trends, a greater proportion of shelf space will be dedicated to beauty products formulated with organic ingredients and packaged with sustainable materials.
Biggest companies in the Cosmetic and Toiletry Retailing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Mecca Brands | 1,150.0 | |
Wesfarmers | 260.0 | |
Sephora Australia | 230.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Haircare products, Make-up and skincare products and Perfumes and fragrances. Haircare products is the largest segment of the Cosmetic and Toiletry Retailing in Australia.
Trends and Insights
A constant stream of new products boosted make-up and skincare product sales
- The make-up and skincare segment covers a range of beauty and cosmetic products, including lipsticks, manicure products, face powders, skincare products and sunscreens.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Online Shopping in Australia
- Pharmacies in Australia
Complementors
- Cosmetics, Perfume and Toiletries Manufacturing in Australia
- Cosmetics and Toiletry Wholesaling in Australia
International industries
- Beauty, Cosmetics & Fragrance Stores in the US
- Perfume & Fragrance Stores in the US
- Online Perfume & Cosmetic Sales in the US
- Beauty, Cosmetics & Fragrance Stores in Canada
- Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
Table of Contents
About this industry
Industry definition
Industry firms sell cosmetics, perfumes, toiletries and personal grooming products. Industry retailers include specialty cosmetics stores, perfume and fragrance stores, and beauty supply stores.
What's included in this industry?
Make-up and skincare productsPerfumes and fragrancesHair-care products Personal-care productsCompanies
Mecca BrandsWesfarmersSephora AustraliaPurchase this report to view all 5 major companies in this industry.
Related Terms
COSMETICSMASSTIGE PRODUCTSCOSMECEUTICALSNUTRICOSMETICSELECTRONIC DATA INTERCHANGEIndustry Code
ANZSIC 4271 - Cosmetic and Toiletry Retailing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Cosmetic and Toiletry Retailing industry is one of several retail channels for beauty products. This means it operates against a highly competitive backdrop, vying with t...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Product portfolios are continuing to change, reflecting new markets and products like cosmeceuticals and male-only lines. Changing product portfolios also reflect an extensio...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The industry’s geographic distribution reflects Australia's economic, social and demographic breakdown. In line with this, the three eastern seaboard states account for over ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
A highly competitive backdrop characterises the industry, with cosmetics retailers competing not only against each other but also against other traditional bricks-and-mortar c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Several international beauty retailers operate in Australia, with the likes of Lush, the Body Shop, Sephora and L’Occitane often present in major Australian shopping malls. D...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Mecca Brands's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sephora Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Mecca Brands, and factors influencing its performance in the industry
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description and key data for Sephora Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Discretionary income levels influence consumer purchasing patterns for cosmetics and beauty products. The current cost-of-living crisis may contribute to consumers opting for...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures vary in line with a retailer’s size and ownership structure, the number of brands it carries, and its business model. This includes whether the company positi...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cosmetic and Toiletry Retailing industry in Australia in 2024?
The market size of the Cosmetic and Toiletry Retailing industry in Australia is $5.4bn in 2024.
How many businesses are there in the Cosmetic and Toiletry Retailing in Australia industry in 2024?
There are 4,580 businesses in the Cosmetic and Toiletry Retailing industry in Australia, which has grown at a CAGR of 2.3 % between 2019 and 2024.
Has the Cosmetic and Toiletry Retailing industry in Australia grown or declined over the past 5 years?
The market size of the Cosmetic and Toiletry Retailing industry in Australia has been growing at a CAGR of 1.4 % between 2019 and 2024.
What is the forecast growth of the Cosmetic and Toiletry Retailing industry in Australia over the next 5 years?
Over the next five years, the Cosmetic and Toiletry Retailing industry in Australia is expected to grow.
What are the biggest companies in the Cosmetic and Toiletry Retailing market in Australia?
The biggest companies operating in the Cosmetic and Toiletry Retailing market in Australia are Mecca Brands, Wesfarmers and Sephora Australia
What does the Cosmetic and Toiletry Retailing in Australia include?
Make-up and skincare products and Perfumes and fragrances are part of the Cosmetic and Toiletry Retailing industry.
Which companies have the highest market share in the Cosmetic and Toiletry Retailing in Australia?
The company holding the most market share in Australia is Mecca Brands.
How competitive is the Cosmetic and Toiletry Retailing industry in Australia?
The level of competition is high and increasing in the Cosmetic and Toiletry Retailing industry in Australia.
