Megatrends: Quantifying Wellness and Experience More in the Australian Beauty Market

A version of this article originally appeared in Retail World August 2024.

Euromonitor’s Megatrends Quantification Model provides quantitative insights into future consumer spending trends across key global regions. In Australia's beauty and personal care market, the Experience More and Wellness megatrends are shaping market dynamics. Brands are setting themselves apart by delivering superior consumer experiences, from personalised offerings to immersive and engaging retail environments. Simultaneously, wellness continues to play a significant role in the market, even as it reaches a more mature phase with moderate projected growth. Consumers are now increasingly prioritising holistic wellbeing, driving demand for products that promote overall health and self-care. This convergence of wellness-focused products and experiential innovation is fostering a dynamic, growth-orientated market in Australia's beauty and personal care industry.

Experience More prioritises elevating the product experience forefront

Australasia is at the forefront of the Experience More megatrend, with an average annual growth rate of 6% from 2022 to 2027, outpacing other regions in terms of market potential. This trend reflects a strong consumer preference for unique and enriching experiences with products and services. In the beauty and personal care market, brands are pushing the boundaries of traditional offerings, creating products that deliver authentic, personalised experiences. This trend is evident in brands like Sundae Body and Hismile, which have both creatively reshaped everyday routines. Sundae Body has transformed the shower experience with its innovative whipped shower foam. Hismile has similarly captured consumer interest with its creatively flavoured toothpastes, packaged as collectible items. Taking innovation a step further, Hismile launched SmileStika—temporary tooth tattoos—allowing consumers to customise their smiles with unique designs, aligning with their desire for self-expression. These innovative product developments have earned these brands notable recognition and success in the market.

Beyond product innovation, the Experience ­More trend is also reshaping how Australians shop. Australia remains an offline shopping-centric market. Consumers appreciate visiting physical stores to engage directly with products and interact with knowledgeable staff. This makes experiential retailing crucial, especially in the beauty sector.

12% of Australians identified a premium shopping experience as a key aspect of premium beauty, while 15% perceived personalised consultation services as a premium feature

^{Source: Euromonitor Voice of the Consumer: Beauty Survey, fielded June to July 2024}

Local beauty specialist Mecca is at the forefront of redefining in-store shopping through innovative retail practices. Each of its stores boasts unique, bespoke designs that create a distinct and engaging atmosphere. The staff are extensively trained in product knowledge, offering expert guidance to assist customers in finding products tailored to their preferences. Mecca further demonstrates its commitment to excellence by reinvesting 4% of its revenue into staff education and engagement initiatives, ensuring a high standard of service and expertise across its locations.

Wellness is a lifestyle proposition

Wellness remains a firmly established trend in Australasia, with forecast growth in per capita spending maintaining a modest yet positive trajectory. Consumers in this region continue to place a strong emphasis on their health and wellness, consistently prioritising investment in wellness-related products.

Notably, Australian consumers, particularly Generation Z and millennials, are increasingly willing to allocate more of their future spending towards health and wellness in 2024

^{Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024}

For these younger cohorts, wellness has become a central lifestyle proposition, seamlessly integrated into their beauty routines. They are increasingly turning to beauty products for relaxation and self-expression, viewing them as essential to their holistic wellbeing.Ingredient-led beauty has become a cornerstone of Australia's holistic health trend, resonating strongly with beauty shoppers. Nature and organic ingredients have firmly cemented their place in the market, favoured by local consumers. Australian-native botanical extracts such as Kakadu plum are gaining popularity for their eco-friendly and effective properties. This emphasis on natural efficacy has captured the attention of younger demographics, who increasingly prioritise active ingredients in their beauty and personal care products. This shift emerged during the pandemic, when elaborate skin care routines became a form of self-care amidst uncertainty. As daily life resumes its pace, there's a growing preference for simpler skin care rituals centred on high-quality hero products. Additionally, skin care ingredients are also extending into other categories like hair care, sun care, and cosmetics, further embedding wellness into daily life.

Australian consumers now view health as encompassing mental wellbeing and sufficient sleep, as well as feeling good

^{Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024}

Brands are adapting by emphasising emotional and internal health benefits, driving growth in beauty products using neuroscience to enhance emotional wellbeing. Anti-stress skin care, like IKKARI’s Deep Sleep Protocol kit with ingredients such as blue lotus and chamomile, targets skin health linked to quality sleep. In fragrances, neuroscientific advancements are connecting scents with emotional and physical health, appealing especially to consumers seeking emotional and self-care benefits. Brands like Vyrao and Aerway use scent to boost mood and energy, aligning with holistic wellbeing trends.

Read our articles, Beauty and Personal Care Innovation in Botanicals and Functional Fragrances and Rethinking Femcare Amid Holistic Wellness Movement, for more analysis on ingredient-led and holistic wellness-driven beauty trends.