Australians have long been fans of cosmetic oils such as rosehip, argan, jojoba, avocado and coconut in facial, body and haircare products. They absorb into the skin and hair quickly, have well-documented benefits and are often budget-friendly.
According to Global Market Insights, the international research and consultancy company, the worldwide cosmetic oil market will reach US$7 billion by 2027 – up from US$4.8 billion in 2020.
Four main drivers are fuelling the market:
- The surge in the use of oils in makeup products
- The growing consumer interest in essential oils
- The high adoption of haircare products beyond the basics
- The popularity of plant-based oils in cosmetics
The continued growth of the natural and organic beauty categories is carrying plant and vegetable oils along in its wake and they will account for the lion’s share of the cosmetic oils market by 2027 with sales of US$5.9 million.
The use of oils in hair conditioners will also remain a dominant trend, adds the researcher. The accelerated use of DIY hair colourants and increased environmental stresses have super-charged demand for hair conditioning products. The global oil-based hair conditioning market is predicted to hit US$2.5 billion over the next five years.
The Asia/Pacific is expected to remain the top regional market for growth in cosmetic oils. The most in-demand oils for skin conditioning, blending, formulating and adding fragrance to products are: mineral oil, essential oils and vegetable oils.
Many Australian brands have gained popularity in the APAC market, notably during online shopping festivals such as Singles’ Day, and the region is expected to account for 40 per cent of the global cosmetic oil market by 2027 with more than US$2.95 billion in sales.