Cosmetics and hair care brands will continue to dominate the retail market for the foreseeable future, with retailers accounting for more than half of all the products sold in the country, according to the latest data from NPD Group.
NPD Australia, which compiles data from multiple leading retailers across Australia, found the average retail price of a brand’s product increased by 6.4 per cent to $5,086 per 100g in 2016.
The company found the number of sales for each of the major categories grew by 1.6 per cent.
It also found the percentage of Australians aged 15-24 buying products from the cosmetics and haircare industry rose from 2.4 to 2.6 in the past 12 months.
“The industry is seeing the return of a certain consumer base, and the rise of more and more young consumers,” NPD managing director and analyst Matthew Brown said.
However, the average price of products remained unchanged in 2016, with only a slight increase in the price of some products.
The NPD data also found there was a decrease in the share of the Australian population aged 15 to 24 buying products for hair care.
According to the Australian Bureau of Statistics, the number buying products aged 15 and under increased by 0.9 per cent in the 12 months to March.
There were a number of notable changes in 2016 that can be attributed to the rising popularity of beauty products, according the data.
Firstly, the beauty industry saw a significant increase in volume and was able to meet the demand for new products in a faster time.
Secondly, the cosmetics industry saw an increase in its share of sales, which increased from 11 per cent at the end of 2015 to 16 per cent by March this year.
Lastly, the Australian makeup industry saw its share increase from 13 per cent during the year to 15 per cent for the year, as it gained more popularity.
Dr Brown said it was too early to tell how the industry would respond to the election of President Donald Trump.
“If the election goes against the makeup industry, then you can imagine the makeup companies will look to go back to their roots and start to manufacture their products again, rather than being forced to make a few big changes,” he said.
Topics:commerce,business-economics-and-finance,advertising,industry,products,health,hair-and.-hair,commerce,united-statesFirst posted January 05, 2021 09:31:47Contact Nick WithersMore stories from New South Wales