The skincare market is growing faster than any other segment in the beauty industry – accounting for 60% of worldwide cosmetic market growth. Social media has led to consumers becoming more knowledgeable about skincare and demanding higher quality ingredients and formulas.

Australia’s beauty and cosmetics sector is an innovative and forward-looking industry. Brands like The Ordinary are known to be market pioneers of the new skincare era, with its vision of allowing the general population to access high quality skincare products at affordable costs. Similarly, newcomers such as Sukin and Essano are gaining traction for their low price and natural ingredients.



Formulation is key. Demand for ‘clean and natural beauty’ is rising. Australia is respected producer of natural skincare products. Suppliers should consider leveraging local botanical ingredients such as tee tree and eucalyptus for international expansion.  “Ethical consumerism’ is something that is becoming mainstream and so prioritising social and environmentally considerations is a must. Brands should incorporate things like glass packaging, cruelty free or organic ingredients.



Skincare is one of the few products where regular consumers would be willing to pay a price premium in Australia.  The premium skincare market is a lucrative one, representing approximately 30 percent of the market. On the other hand, there is increasing sentiment amongst younger consumers that “you don’t have to pay a high price for quality skincare”. Making skin care accessible and affordable in itself is a branding strategy that millennials and young consumers appreciate.


Embrace the digital. You can appease to the new generation of consumers by utilising online influencers. Transparency is key in a digital world. Give social media users the opportunity to talk about your product – that is the best (and cheapest) way to build up your brand reputation. Skincare suppliers entering the Australian market through retailers (ie pharmacies and supermarkets) must remember to include a contribution to retailers’ marketing in there budget as this can cost hundreds of thousands or even millions of dollars.

Market education on skincare products is also on the rise. Paula’s Choice’s website features its own dictionary where consumers can search up commonly used skincare ingredients and whether this ingredient is good or bad for the skin. Think about how you can also take your brand philosophy a step further to align with the interests of the market.


Leverage multichannel sales in both the B2B and B2C space. Use affiliate links and sponsored social media posts to generate new leads. Wholesalers can leverage growing consumer demand for premium products and expand into the B2C market. Pharmacies and supermarkets are a great place for brands seeking volume and exposure with lower price points whereas the online marketplace is great for new-comers.


The skincare market has undergone one of the biggest transformations in the digital age of social media. Despite being a rather saturated market, we believe opportunities for innovative brands are definitely there. Having a brand philosophy that emphasises on natural footprinting, social and ethical considerations as well as building up a strong brand presence utilising social media can help your skincare exporting business succeed.