Age catching up: Fierce competition and a saturated market stifle industry revenue growth

The Cosmetic and Toiletry Retailing industry sells thousands of cosmetic and toiletry brands. The industry has grown modestly over the past five years, boosted by strong household expenditure on cosmetics, perfumes, soap products and other toiletries. The constant introduction of new products has been a key driving force in the industry’s performance, as has Australian consumers’ willingness to buy an increasing range of complex formulated products and premium green products. The development of fusion and eco-friendly lines has stimulated new demand in an otherwise mature, saturated industry. As a result, industry revenue is expected to grow at an annualised 2.6% over the five years through 2016-17, to $3.9 billion. This includes expected 1.6%...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
2.6%
Forecast Growth 17-22
Profit
Employment
18,450
Businesses
4,738
Market Share of Companies

Industry Threats & Opportunities

  • Millennial consumers' strong demand for professional-grade is driving industry revenue
  • An increasing range of innovative products has driven growth in a mature market
  • Ongoing development of new fusion and niche products will likely help drive growth
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is currently in the mature phase of its life cycle, as it contends with increasingly challenging operating conditions. While a few industry players are continuing to roll out stores, establishment numbers are falling as the market matures and an increasing number of product segments reach saturation point. This has led to the closure of under-performing stores and, in some instances, the exit of entire chains. The industry is facing intense external competition from numerous sources, such as supermarkets, department stores and pharmacies, which is adding to consolidation pressures. The internet is also proving to be an increasingly important rival for cosmetic and fragrance sales...purchase to read more.

    Additional Insights for the Cosmetic and Toiletry Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cosmetic and Toiletry Retailing Industry are

  • Ability to control stock on hand
  • Having a clear market position
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Female population aged 18 and older in the Cosmetic and Toiletry Retailing industry impact industry performance..

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    What's in this report

    What is the Cosmetic and Toiletry Retailing Industry?

    Industry firms sell cosmetics, perfumes, toiletries and personal grooming products. Industry retailers include specialty cosmetics stores, perfume and fragrance stores, and beauty supply stores.

    Industry Products
  • Hair-care products
  • Cosmetics
  • Bath, shower and skincare products
  • Fragrances
  • Men's grooming products
  • Oral hygiene products
  • Other products
  • Talcum powders and deodorants
  • Industry Activities
  • Cosmetics retailing
  • Bath, shower and skincare products retailing
  • Perfumes and fragrances retailing
  • Hair care products retailing
  • Men's grooming products retailing
  • Oral hygiene products retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Female population aged 18 and older
  • Real household discretionary income
  • Demand from department stores
  • Demand from online shopping
  • Consumer sentiment index

  • Current Performance
  • Modest growth
  • Price and profit pressures
  • Changing players
  • New competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Customers and products
  • Intensifying competition
  • Table: Cosmetic and Toiletry Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cosmetic and Toiletry Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Internet Service Providers
  • Soap and Cleaning Compound Manufacturing

  • Products & Services
  • Bath, shower and skincare products
  • Hair-care products
  • Cosmetics
  • Fragrances
  • Men's grooming products
  • Other products
  • Oral hygiene products
  • Talcum powders and deodorants
  • Chart: Cosmetic and Toiletry Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Cosmetic and Toiletry Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Cosmetic and Toiletry Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cosmetic and Toiletry Retailing Industry

  • Industry Globalization
    Australian Pharmaceutical Industries Limited,
  • Table: Australian Pharmaceutical Industries Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cosmetic and Toiletry Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cosmetic and Toiletry Retailing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cosmeceuticals
  • Cosmetic products that contain biologically active ingredients that claim to have medical benefits.
  • Cosmetics
  • Substances used to enhance the appearance or odour of the human body.
  • Electronic Data Interchange
  • An Electronic data interchange is a computer system that allows the transmission of data between establishments.
  • Masstige Products
  • High-quality, mass-market products possessing the appearance of prestige or premium products.
  • Nutricosmetics
  • Nutritional supplements that support the structure and function of the skin.
  • What Our Customers Say

    Why buy this report?

    The Cosmetic and Toiletry Retailing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cosmetic and Toiletry Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cosmetic and Toiletry Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cosmetic and Toiletry Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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