Nowadays, Beauty is a passion.
The items with mild action on the human body for the purpose of cleaning, beautifying, adding to the attractiveness, altering the appearance, or keeping or promoting the skin or hair in good condition are called beauty products or cosmetics.
However, In this article, we collided the market research data and came to a conclusion. If you want to know the current condition of the beauty product market in new Zealand, check this article.
The Current Condition of The Beauty Product Market In New Zealand
So, health and beauty encompass a variety of products including fragrances, makeup, hair care, and coloring products, sunscreen, toothpaste, and products for bathing, nail care, and shaving. The industry overlaps with other markets like chemicals, health care, and petroleum.
Presently, beauty products have become an indispensable feature of the modern lifestyle of individuals. In addition, the growth in consciousness about external beauty along with individuals’ internal intellect has become one of the major driving factors for use of beauty products in the global market.
Presently along with women, there is a rise in the use of beauty products among men in their daily routine, which complements the growth of the global cosmetics demand. Hence, such changing lifestyles, have led to the growth of the global cosmetics market. But COVID 19 has transformed the beauty industry also as well as disrupted the other industries.
Based on the scenarios most expected by global executives and current trends, it is estimated the global beauty-industry revenues could fall 20 to 30 percent in 2020. In the United States, if there is a recurrence later in the year, the decline could be as much as 35 percent.
Targeted Skin Care Increasingly Popular
The trend for skincare products that are specifically segmented on the basis of the benefit provided was observed over the review period and in 2019. Some of the many benefits that consumers are now looking for include hydration, anti-aging, acne treatment, and brightening.
L’ORÉAL Leands With Its Wide Product Range
L’Oréal New Zealand continued to lead skincare in New Zealand and recorded further share gain in 2019 with its wide range of renowned brands that meet a variety of consumer needs and demands.
L’Oréal took advantage of growing anti-aging concerns and introduced multiple products under its L’Oréal Paris Age Perfect range at the end of the review period, including night cream, an eye serum, cleansing milk, and wipes.
Sales of skincare are now expected to grow by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19, which is the same as the expected 3% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.
Affected Products Within Skin Care
Overall, the skincare category will remain resilient in 2020 as New Zealanders are treating themselves with premium feel-good and pampering products. Categories that are expected to see growth are serums, face masks, and anti-aging products.
Recovery And Opportunities
Skincare in New Zealand is expected to see further value growth at constant 2019 prices over the forecast period, outperforming the review period. With most categories on the rise, COVID-19 is not expected to have a significant long-term impact on sales.
COVID-19 Impact On Beauty And Personal Care
Social distancing and consumers spending more time at home due to the COVID-19 pandemic are expected to reduce demand for certain products with a non-essential positioning, such as fragrances, premium color cosmetics, men’s grooming, and depilatories. Other categories, including oral care, deodorants, skincare, and hair care will remain resilient as they are essential items and fit in the wider context of overall health and wellbeing.
COVID-19 Country Impact
As of 10 May 2020, New Zealand had seen around 21 deaths due to COVID-19 and 1,500 cases. Stage 4 lockdown was announced on 25 March, with all businesses except essential services closed and stay-at-home orders in place except for exercising, shopping for groceries, or going out for medical services.
Clean Beauty Trend With Natural And Sustainable Products In 2019
An overall shift from traditional beauty to health and wellness has been observed in New Zealand, with brands attempting to offer products that are a mix of beauty and wellness.
Elements such as mental wellbeing are entering categories with stress-relieving products in categories such as bath and shower and skincare, meanwhile in skincare ingredients that promote the growth of good bacteria such as probiotics are increasingly important.
Multinational Leads, But Local Brands On The Rise In 2019
In 2019, beauty and personal care in New Zealand continued to be led by multinationals, including L’Oréal and Unilever, which are able to maintain their positions by innovating, providing quality products, and investing in the consumer shopping experience.
L’Oréal New Zealand Ltd has been able to retain its overall leadership with the help of strategic acquisitions such as European Société des Thermes de La Roche-Posay, Korean company Nanda Co.
Further Growth Expected With Ongoing Demand For Natural Aand Sustainable Products
Despite the expected economic uncertainty and rising unemployment in the wake of the COVID-19 pandemic, beauty, and personal care is expected to record further growth in value sales terms at constant 2019 prices over the forecast period, on a par with the growth seen over the review period.
Bath and shower should experience the strongest performance, with ongoing hygiene concerns and more frequent handwashing following the COVID-19 pandemic continuing to benefit further.
The Most Popular Brands and How Are They Leading The Market In New Zealand?
After a beauty routine that’s not only clean but also highly efficacious and sustainably-minded, Snowberry ticks all the boxes. Many of the skin-health-enhancing ingredients are sourced from the Snowberry Gardens just outside Auckland and include a number of indigenous botanicals such as harakeke seed oil and kanuka honey.
There’s science – an eight-week gold-standard clinical trial – behind Snowberry’s New Radiance Face Serum. Powered by New Zealand’s own kanuka super honey, the formula works to hydrate and soothe skin for a more radiant, even-toned complexion.
It was a light-bulb moment that started one of New Zealand’s most successful beauty exports. Ethique’s founder Brianne West was perplexed by the amount of water used in traditional haircare formulations, therefore West’s solution was to manufacture an entirely ‘solid’ product range, sold in biodegradable and compostable packaging.
The Jasmine & Ylang Ylang Butter Block not only smells divine but will keep skin well hydrated right throughout winter with its nourishing formulation of ethically sourced organic cocoa butter and organic coconut oil.
A ‘100 percent wild’ philosophy is at the heart of Kiwi-born beauty brand, Girl Undiscovered. Since its inception, the natural-based, ethically sourced brand has garnered a cult following right around the globe. It’s not hard to understand why – not only do all the products look luxurious, they’ve also been created with sustainability in mind. Many of the ingredients are sourced in New Zealand and the brand takes care to ensure it works with small, sustainable organic producers.
Lightweight Soaked in Sunshine Body Oil is just what dehydrated skin needs during the cooler months.
No one knows lip color quite like New Zealand’s lipstick queen, Karen Murrell. Not only do her lipsticks provide lips with a serious pop of color, but each lipstick shade is made from natural and nourishing ingredients that care for lips. Avocado oil and evening primrose oil keep lips hydrated and soothed right around the clock. Every lip color is also cruelty-free and devoid of nasties including parabens, BBPs, triclosan, and carmine.
The new Karen Murrell Nude Lip Palette is known for Five of its most-popular shades have been collected in a stunning palette.
Launching a new brand during the lockdown, Mel Lewis – the brains behind Ultrella – did. “I had all the stock ready, my website was ready, I’d launched my social media,” says Lewis. “I just thought, ‘I have to give it a go.’” Ultrella is New Zealand’s first demi-perspirant – a clean, natural-based deodorant that uses game-changing ingredients to deter sweat. “Our ingredients had to be safe, clean, irritant-free, soothing, and smell really good,” Lewis says.
Clever Ultrella Natural Deodorant comes in three scents – Manuka Meadow, Vanilla Bean, and Sunshine Lime – and is packaged in colorful, recyclable pouches. They’re free from nasty ingredients and contain a nourishing cocktail of sweet almond oil, shea butter, coconut, and prebiotics to keep your skin nourished and sweat-free.
Prior to launching Bentley & Hart, husband and wife duo, Bryan and Julie Hart, had dabbled in the art of candle making for many years. They even ventured overseas to master the art. Their recently launched business has also helped the Harts’ daughter, Daniella, gain meaningful employment. Diagnosed with autism as a young child, Daniella has previously struggled to find pathways to employment.
Bentley & Hart’s first collection, one by one, has been meticulously handcrafted and made with exquisite scents that will transform your living space and soothe the soul. The scents include French Pear and Custard, Cashmeran & Rose, and Linden Blossom.
Local brand re. skin takes a multifaceted approach to healthy skin. The Kiwi brand combines the best of science and nature in their clever two-step skincare system. The system – perfect for anyone looking for healthy, glowing skin without a long routine – features just two products: their skin reform serum and skin revive supplements.
Their two-step system a go. The serum features a host of active ingredients and anti-inflammatory botanicals, while the supplements have been formulated with antioxidant-rich vitamins and minerals as well as youth-restoring New Zealand-sourced marine collagen.
With 20 years’ experience as a make-up artist behind her, the founder of Aleph Beauty, Emma Peters, knows a thing or two about beauty. Peters founded Aleph when she couldn’t find a make-up brand that aligned with her beauty philosophy – that beauty shouldn’t mean sacrificing one’s health or the health of the planet. With that in mind, Peters launched her sustainable, cruelty-free brand that harnesses the power of clean ingredients.
Aleph’s multi-tasking Cheek/Lip Tint is a handbag essential. Available in four easy-to-wear shades, the clever vegan formula can be applied with fingers to add warmth to match the complexion and a pop of color on lips.
Caci has been guiding Kiwis as they embark on their skin-health journey for more than 20 years. However, no beauty routine is complete without the right skincare, so as well as offering an array of complexion-enhancing treatments, Caci has its own skincare line, Skinsmiths. The range uses ingredients such as retinol and vitamin C to enhance results between treatments.
Retinol is essential for anyone looking to fend off the signs of aging, but introducing it into your routine needs to be done carefully as it can irritate the skin. Skinsmiths Retinol Booster has been formulated especially for those who are new to retinol.
Effective plant-based ingredients are at the heart of Maryse O’Donnell’s eponymous skincare line, Maryse. O’Donnell, a natural-beauty specialist, takes a pared-back approach to her skincare formulations. Each of her products includes deeply nourishing botanical extracts and phytonutrients without any unwanted toxic ingredients. All of her products are small-batch, which means you get the most effective, natural ingredients every time.
If winter weather is wreaking havoc on your complexion, the Intensive Omega Treatment Oil will soon restore skin to its former hydrated glory.
Thinning hair is an all-too-common beauty dilemma for both men and women. Formulated right here in New Zealand, Saw Palmetto has been created with a game-changing cocktail of nourishing botanical ingredients that can help to restore shine, health, and volume to thinning hair.
Star ingredient saw palmetto, which is renowned for its anti-inflammatory properties, is at the heart of the range that consists of a shampoo, conditioner, and leave-in spray. The likes of vitamin B7, caffeine extract, ginger root, and seaweed algae work in unison with the key ingredient to boost the health of hair follicles and encourage growth.
Anyone plagued with skin allergies will know it’s not always easy to find skincare that caters to sensitive skin. Founder of Linden Leaves Brigit Blair was faced with this problem back in 1995 with her two children who suffered severe eczema and allergies.
Blair blended her own effective skincare and body products that nourished all skin types. Today, Linden Leaves is still producing efficacious products that harness quality organic and natural ingredients to deliver great results.
A blend of kiwifruit seed oil, organic rosehip oil, and organic white tea combine in Linden Leaves’ new Regenerating Elixir ($59.99). The NATRUE-certified blend, which helps rejuvenate the skin, enhance hydration and minimize signs of aging, is free from toxic ingredients and is New Zealand made.
The Limitations In New Zealand That Are Affecting The Growth of The Beauty Product Market
The story of the changing beauty industry is a positive one – of women’s empowerment, entrepreneurship, inclusiveness, and a better shopping experience, which should do more to enhance manufacturers’ profit and growth opportunities than threaten them.
As beauty products become an integral part of individual’s lives, consumers especially women, prefer to use cosmetics products, which are handy and easy to use while traveling or attending social meetings.
Moreover, the use of natural ingredients for the manufacturing of cosmetics products, which does not have any adverse effect on the skin, is a popular strategy of manufactures to attract more customers. This also helps in increasing the revenue of companies operating in this industry.
Collectively, all strategies adopted by manufacturers drive the global cosmetic market. However, chemicals used in manufacturing cosmetic products can harm an individual’s skin or other parts of the body.
In addition, the application of cosmetic products on a daily basis could be dangerous for the skin. Chemicals used as ingredients in cosmetic products can have many adverse side effects on the skin. Long-term and extensive use of chemicals-rich shampoos, serum and conditioners lead to heavy hair fall problems.
Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases and consequential health hazards. Therefore, an increase in awareness of probable side effects of cosmetics and skin concerns among customers is an important factor of the market as a whole.
A number of recent reports concerning New Zealand’s beauty industry have revealed that a certain demographic and the rise of natural beauty is helping to boost the annual spend on skincare and cosmetics.
There are still several hurdles that must be overcome when starting a business venture in New Zealand, and having local help on hand can prove to be a real asset when setting up overseas.
Starting a Business
The World Bank and IFC rank New Zealand number one in the world for ease of starting up a business. Companies are required to apply for registration with the Companies Office online (for IRD number and GST registration), which takes only one day to complete.
Dealing with Construction Permits
There are six procedures involved when obtaining construction permits, taking 89 days in total. Companies must receive resource consent (planning), building consent, and an inspection from the District Council, as well as getting CCTV approval by Watercare and getting phone, water, and sewer connection.
It only takes two days and two steps to register property by obtaining a land information memorandum and registering a title through Land Information New Zealand (LINZ).
Getting electricity is the most arduous element of setting up a business in New Zealand, requiring five procedures that take 50 days to complete. Dealing with the utility provider can take some time, particularly in the early stages of the procedure.
Getting Credit and Protecting Investors
New Zealand’s robust financial services sector and strong regulatory environment give good protection to investors and make it relatively easy to obtain credit. The World Bank and IFC rank New Zealand fourth in the world for getting credit and first for investor protection.
The fiscal environment in New Zealand is dominated by headline payments, which streamlines the process substantially. However, there are certain taxes that can be quite time-consuming, such as the accident compensation corporation (ACC) levy or VAT returns, which take well over 100 days combined to complete.
Trading Across Borders
As an island nation, there is a strong reliance on fast and efficient cross-border trade. There are five documents to prepare when exporting and six when importing, taking ten days to complete on average.
There are 30 procedures involved when enforcing contracts, taking 216 days altogether. The cost of the attorney amounts to around 22% of the claim, although the court costs are substantially lower, standing at around 2% of the overall claim.
It takes 1.3 years to resolve insolvency, with the average recovery rate around 83 cents on the dollar.
There are marked differences between Maori and NZ European (Pakeha) societies in New Zealand, and businesses should be mindful of these disparities. Other than that, companies can expect quite a warm and relaxed welcome in the country.
According to information, data, and measurement company Nielsen, New Zealand’s population is an aging one and the number of consumers over 50 years old makes up 38 percent. This is expected to rise to as high as 43 percent by 2025.
Personal care and beauty brands are reaping the rewards of this demographic as they spend increasing sums on achieving a youthful appearance. The Nielsen report revealed that New Zealanders spent $NZ105m on cosmetics in 2016, up 17.7 percent in 2015, and almost double the annual spend five years ago.
Market researchers also note that a surge in the introduction of natural, environmentally-friendly products is also contributing to the boom.
A Euromonitor report released in May revealed that green NZ brands such as Ecostore and Earthwise were experiencing strong sales, while the Essano haircare range Mix and TRESemmé Botanique were proving popular too. According to Cosmetics Business, the trend towards natural formulations is backed up by New Zealand legislation which, “supports a natural approach and promotes high environmental standards.”
Similarly, locally produced brands known for their natural approach are seeing increasing demand worldwide, as well as creating significant additional jobs through domestic manufacturing operations reports the Cosmetic, Toiletry and Fragrance Association of New Zealand (CTFA).
Trilogy, the first New Zealand-made skincare brand to achieve NATRUE natural cosmetics certification, World Organic and Living Nature are just a few of the 60 or so NZ personal care brands to have been established over the past decade.
The Cosmetics industry in New Zealand generates over $150 million in exports across a range of product types ranging from traditional cosmetic products to natural ingredients and unique New Zealand cosmetics. These products are also sold in the domestic market.
Health & Beauty Retailing in New Zealand, Market Shares, Summary and Forecasts to 2022
Health & Beauty Retailing in New Zealand, Market Shares, Summary and Forecasts to 2022, provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to the New Zealand retail environment. In addition, it analyzes the key consumer trends influencing New Zealand’s health and beauty industry.
Health & beauty sector sales reached NZ$3.3 billion in 2017 and are forecast to reach NZ$4.1 billion in 2022, with a CAGR of 4.0% during 2017-2022. The healthcare category is the largest category in terms of sales and accounted for 62.0% of the total sector expenditure in 2017.
- In-depth analysis of the latest trends in consumer shopping, covering the factors driving shopping, consumer insights, market dynamics
- The report also details major retailers in the health and beauty category group with their product proposition analysis and market positioning in 2017 along with recent key developments
- Market insights based on consumer trends, changing economic and demographic factors, technology innovations, and other macroeconomic factors
- Retail sales and the fastest-growing product categories in the health and beauty sector
- Qualitative and quantitative insights of changing retail dynamics in the health and beauty sector.
- New Zealand retail market is forecasted to grow at a CAGR of 4.9% during 2017-2022
- Increasing private spending and growing health awareness will strengthen the sales
- Growing awareness via social media driving sales of beauty products
- Strong growth due to health awareness and rising old age population
- Health & beauty stores to remain the largest channel while online retail grows rapidly
- Online sales to grow due to easy returns and convenient payment options
- Local value player All brands lead the health and beauty sector in 2017
- Bay Audiology/Dilworth registered the highest sales growth boosted by store openings.
Make-up Market in New Zealand: Market Snapshot to 2022
Make-up Market in New Zealand: Market Snapshot to 2022 report provides market and category level consumption within the country’s Make-up market. It provides historic and forecasts consumption along with the latest events and recent developments in the global market.
Get access to detailed historic and forecast consumption values and volumes at the category level along with a top-level overview and detailed insight into the operating environment of the New Zealand Make-up market, making it an essential tool for companies active across the value chain and for all new entrants by enabling them to capitalize the opportunities to develop business strategies.
Mass Beauty and Personal Care in New Zealand
Mass beauty and personal care performed well in 2019 due to a rise in demand for quality, natural products, as well as increased competition with local products offering such products. Consumers, however, remained price sensitive and opted for more affordable items during the year. Supermarkets continued to be the key distribution channel for mass beauty and personal care, with Foodstuffs and Woolworths having an extensive store network and offering price discounting, although the lack of privacy.
Euromonitor International’s Mass Beauty and Personal Care in New Zealand report offer a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2015-2019, allowing you to identify the sectors driving growth. Forecasts to 2024 illustrate how the market is set to change.
Premium Beauty and Personal Care in New Zealand
Premium beauty and personal care recorded further current value growth in 2019 as consumers were prepared to spend more on premium products to experience luxury brands, such as Yves Saint Laurent, Armani, and Gucci, at affordable price points. The strongest growth was again seen in premium color cosmetics, with sales driven by the increasing availability of products both on- and offline through beauty specialist retailers and department stores. The rise in premium color cosmetics is also driven.
Euromonitor International’s Premium Beauty and Personal Care in New Zealand report offer a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2015-2019, allowing you to identify the sectors driving growth. Forecasts to 2024 illustrate how the market is set to change.
Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
Industry operators primarily retail prescription drugs or patent medicines, cosmetics, and toiletries. Industry retailers include community pharmacies, specialty cosmetics stores, perfume, and fragrance stores, and beauty supply stores. The industry does not include related product sales made by rival department stores, supermarkets, and pure-play pharmacy or cosmetic online retailers.
This report covers the scope, size, disposition, and growth of the industry including the key sensitivities and success factors. Also included are five-year industry forecasts, growth rates, and an analysis of the industry’s key players and their market share.