The organic skincare/cosmetics category report strongest gains in purchase participation.
Growing consumer awareness regarding the dangers of chemical compounds in traditional cosmetics is driving industry growth in the Australian organic beauty industry as reflected in the newly released Australian Organic Market Report 2019.
Out of 18 categories including meat, fresh produce, dairy and groceries, the strongest gains in purchase participation were in the organic skincare/ cosmetics category. More than one third (37 per cent) of the 1,025 households surveyed for the report reported that they had made an organic skincare purchase over 2018 compared to 29 per cent the year before – an increase of 8 per cent. In 2016 the rate was just 22 per cent, illustrating just how much interest in the sector has grown.
The organic cosmetics, health, medicinal, beauty and personal care category also grew in total domestic and export value from $117 million in 2017 to $148 million in 2018 – an increase of 24 per cent. One in five people (21 per cent) now buy an organic skincare product every 1 to 30 days, compared to 14 per cent in 2016.
“This sector has really been a star performer in the organics industry and continues to grow, not only thanks to growing awareness about chemicals and customer recognition of the certified organic Bud Logo, but also due to the incredible innovation of Australian producers in the sector,” said Niki Ford, general manager of Australian Organic.
Overall, the sector was the sixth highest performing organic category overall out of 18 sectors and was the third highest performer in the grocery sector behind ready to eat foods, and the top performer of non-alcoholic beverages. NSW was the state with the most producers accounting for 52 per cent of the sector.
Julie Mathers of beauty supplier Flora & Fauna said it’s an exciting time for producers to be in the space, given the various technological advances.
“Another trend that has really been attracting customers of late is the move to more eco-friendly packaging,” she said. “Not only are people wanting things wrapped in less plastic, they’re also seeking out products which use less plastic with containers. Some really exciting innovations have been shampoo soap bars, deodorants in cardboard tubes, refillable makeup pots and mascara in glass tubes. It’s important to make as much as a committed difference with your product as possible and these things are really adding to the attractiveness of organic and natural cosmetics, which is hugely encouraging.”
For more information on the report click below:
https://austorganic.com/publications/ao-market-report-2019/