Melbourne, Australia (PRWEB) March 31, 2014
Over the five years through 2013-14, the Organic Cosmetics and Toiletries Distributors industry has grown phenomenally, backed by surging consumer awareness and increasing concerns about the dangers of chemical compounds in traditional cosmetics. According to IBISWorld industry analyst Ryan Lin, “the strength of the Australian dollar over much of the past five years has also aided imports, which cater to the diverse needs of Australian consumers in their search for natural and organic beauty products.” As a result, while import growth is high, imports are not yet expected to be a major competitor to domestically produced industry products. Over the five years through 2013-14, industry revenue is forecast to grow at an annualised 17.8% as a result of consumers' increasing focus on natural compounds and health and safety.
In 2013-14, revenue is forecast to grow by 7.9% to $236.1 million, continuing its strong performance as consumers seek healthier and safer cosmetics. Domestic demand is forecast to grow at a similar pace as the falling strength of the Australian dollar limits import growth. “Exports are expected to grow strongly but the manufacturing segment will continue to run a strong trade deficit due to the relatively small size of exports,” says Lin.
Over the past five years, the industry has increased in sophistication, with manufacturing and organic compound synthesis techniques producing greater quantities and higher quality products. This has been largely due to the increasing demand from consumers, especially during a time of high discretionary income. The Organic Cosmetics and Toiletries Distributors industry has a low level of market share concentration, with no single operator controlling a significant proportion of industry revenue. The industry is forecast to continue its strong performance over the coming five years, albeit at a slower rate. This performance is expected to be driven by a wider range of organic products being distributed. As economies of scale and scope begin to increase, IBISWorld expects that industry operators will be able to increase output through consolidation and generate higher profit.
For more information, visit IBISWorld’s Organic Cosmetics and Toiletries Distributors report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes companies that are primarily engaged in the supply of certified organic cosmetics and toiletries.
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
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.