Despite its mature nature, the industry has grown and evolved in the past five years
Melbourne, Australia (PRWEB) July 20, 2012
The Cosmetics and Toiletry Wholesaling industry in Australia plays an essential role in distributing goods to downstream cosmetics and toiletry retailers. Over the five years through 2012-13, the industry is expected to post moderate gains with revenue growing at an annualised 1.9%. IBISWorld estimates that the industry will generate revenue of $4.7 billion in 2012-13. This represents growth of 3.1% on the previous year, boosted by higher discretionary consumer spending, robust consumer confidence and a stronger economy. According to IBISWorld industry analyst Arna Richardson, “despite its mature nature, the industry has grown and evolved in the past five years, with sustained product development stimulating continued customer interest”. New products have been introduced, including ethical, natural and organic products. These products were developed in response to the increasingly sophisticated tastes of consumers and in line with the rise of the ethical consumerism movement. An expanding customer base has also influenced demand, partially offsetting the effects associated with the mature nature of the industry.
Over the next five years, further modest growth is forecast for the industry. “Technological advances will remain a key driving force” says Richardson. Other factors expected to benefit the industry include the willingness of Australian consumers to buy complex formulated products and green products, which are expected to become more mainstream.
The Cosmetics and Toiletry Wholesaling industry is highly fragmented with a large number of small players. The industry has a low level of market share concentration. This is despite the fact that many of the players within the local industry are subsidiaries of global manufacturers that dominate the industry on a global scale throughout the value chain including at the downstream retail level in terms of sales of branded goods. The four largest players in the industry are L'Oreal Australia, Procter & Gamble Australia, Colgate-Palmolive, and Unilever Australia.
For more information, visit IBISWorld’s Cosmetics and Toiletry Wholesaling report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry comprises companies that wholesale toiletries and cosmetics, including perfume, soap and detergent. The products are obtained from upstream manufacturers and then distributed to various retail outlets, including pharmacies, department stores, supermarkets and cosmetics retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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