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Tightened Pursestrings Affect Australian Skin Care Market
Posted: August 9, 2013
According to a report from Canadean, Australian skin care consumers are coming to favor bulk deals and offers as their budgets tighten. Despite low spending, skin care is the largest sector in the Australian health and beauty industry, and according to Canadean, skin care is projected to grow in volume at CAGR of 2.3% to 2017. However, value growth will be significantly lower over at just 0.4%.
The Australian economy has grown strongly, led by strong raw material exports. However, record low interest rates and high levels of household debt have led to lower consumer spending.
Facial care is the largest category in the sector, with value and volume shares of 61.6% and 62.4% respectively in 2012. Growth is also expected to be positive and a value CAGR of 0.6% will set it above the sector average.
In 2012, body care was the second largest skin care category in Australia, with a value share of 27.0%, and volume at 25.6%. It is forecast to be poorest performing category to 2017, with a volume CAGR of 1.4% and a negative value CAGR of -0.7%.
However, hand care will record the fastest growth in the sector for 2012 to 2017. The category’s value and volume will grow at a CAGR of 3.2% and 5.0% respectively to 2017, well above the sector average.