Technological advancements will remain a key driving force for the industry over the next five years.
Melbourne, Australia (PRWEB) October 08, 2014
Companies in the Cosmetics, Perfume and Toiletries Manufacturing industry in Australia are involved in the upstream manufacture of cosmetic and toilet preparation products, including cosmetics, perfumes, deodorants, lotions, creams and hair-care products. The industry is relatively small, accounting for just 2.7% of Australia's Basic Chemical and Chemical Product Manufacturing subdivision (on the basis of revenue) in 2012-13. In line with its mature life cycle status, the overall performance of the industry has been modest over the five years through 2014-15. According to IBISWorld industry analyst Arna Richardson, “growth has been constrained by poor economic conditions, tightened consumer discretionary spending, heightened competitive pressures and falling retail prices.” This has been in line with both price harmonisation and price discounting strategies.
After a significant contraction in 2011-12, the industry has bounced back. However, not all lost ground has been recovered as pricing pressures have restrained growth. Over the five years through 2014-15, the industry is estimated to grow by an annualised 0.6%. In 2014-15, industry revenue will be worth an estimated $960.0 million following growth of 2.4% for the year, boosted by gains in both local and international markets. In comparison, domestic demand is expected to exceed $2.0 billion, highlighting the strong role of imports in the industry. “A large number of cosmetics are imported as fully formulated and packaged products,” says Richardson. This reflects the global nature of the cosmetics sector. Over the past five years, a strong Australian dollar has translated into a higher level of parallel imports, which has affected downstream retail sales. Despite this, industry exports have still made headway in international markets with Australian natural and organic cosmetic manufacturers successfully trading on Australia's 'clean and green' image. The industry has a medium level of market share concentration. Major companies include Unilever Australia (Holdings) Proprietary Limited, Pola Orbis Jurlique Holdings Pty Ltd and Ego Pharmaceuticals Proprietary Limited.
Despite the maturity of the Cosmetics, Perfume and Toiletries Manufacturing industry, it will continue to evolve in the short term, offering potential for both domestic and international cosmetic and toiletry manufacturers. Technological advancements will remain a key driving force. The willingness of Australian and international consumers to buy a range of increasingly complex and green products will also assist industry performance.
For more information, visit IBISWorld’s Cosmetics, Perfume and Toiletries Manufacturing industry in Australia report page.
Companies in this industry manufacture cosmetic and toilet preparation products. Key products include cosmetics, perfumes (natural and synthetic), deodorants, lotions, creams and hair-care products. Raw materials are sourced from other chemical industry segments. The finished products are then sold at various retail outlets, including supermarkets, department stores, specialty cosmetics stores and pharmacies.
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IBISWorld industry Report Key Topics
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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