Makeup sales worldwide are climbing back following the peak of the Covid-19 pandemic. On home turf, the Australian makeup market is expected to experience a CAGR of 4.6 per cent through to 2026, reveals a GlobalData report – Australian Makeup – Market Assessment and Forecasts.

The lip category is expected to register the fastest growth, followed by nail care.

With most Covid-19 restrictions out of the way, Australians are engaging in more out-of-home activities, said Bobby Verghese, consumer analyst at GlobalData. “As more consumers turn into bargain hunters, retailers offering discounts,  special offers and private labels are set to benefit.”

The per capita expenditure (PCE) on makeup in Australia has risen significantly over the past five years, reveals the data tracker. Exceeding the global average of $3.90 by a major margin, the makeup PCE in Australia rose from $10.30 in 2016 to $15.20 in 2021.

By 2026, says GlobalData, Australian per capita spending on makeup is predicted to reach $17.70.

Multinationals hold the top ranking in the Australian makeup market. The Estée Lauder Companies, L’Oréal and Revlon were the top three companies by value in 2021, with Revlon and Maybelline New York leading the brand charge.

The health and wellness trend accelerated by the Covid-19 pandemic will spur demand for clean-label cosmetics with natural and organic ingredients, added Verghese.

“The increasing eco-conscious post-1990s Millennial and Gen Z cohorts will propel the adoption of sustainable ingredients and packaging, including refillable makeup containers.”

GlobalData was also gung-ho about the South Korean makeup market, which is predicted to grow by a CAGR of 5 per cent to US$2.5 billion by 2026.

The face makeup category is expected to enjoy the fastest growth over the forecast period, followed by lip colours.

As the Asian style leader in cosmetics, South Korea’s per capita spend on makeup rose from US$9.60 in 2016 to US$18.10 in 2021. Through to 2026, this figure is expected to increase to US$23.90.

The two homegrown beauty giants – Amorepacific and LG Household & Health care – and the Estée Lauder Companies were the top three companies in the South Korean makeup market in 2021, while the leading brands were Sulwhasoo and The Face Shop.

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