Report

The Sun Care Market in Australia is a growing industry, driven by the country's high levels of UV radiation and the public's growing awareness of the dangers of skin cancer. The market was valued at USD 280.72 million in 2022 and is expected to reach USD 486.31 million by 2030 growing at a CAGR of 7.11% for the forecast period between 2023-2030. In recent years, there has been an increase in the popularity of natural and organic sun care products, which has led to the emergence of new local brands such as Eco Tan and Little Urchin. The Australian government has implemented a number of initiatives to increase public awareness of the dangers of UV radiation and promote the use of sun protection products. These initiatives include the SunSmart program, which provides information and resources to schools, workplaces, and communities, and the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA), which provides guidelines for sun protection.
In Australia, a significant number of individuals actively participate in outdoor sports and activities like beach cricket, rock climbing, abseiling, skydiving, bungee jumping, and hiking. The combination of such an active lifestyle and frequent exposure to the environment underscores the importance of sun care products, to ensure maximum skin protection. Furthermore, in an era where meeting individual consumer needs through personalized and customized skincare is increasingly significant, products with multifunctional claims are experiencing tremendous popularity among consumers. Companies focus on developing sun care products with multifunctional properties to meet the surging demand.
High Levels of UV Radiation
The equator has the highest UV levels. Australia experiences high UV levels because it is close to the equator, located in the Southern Hemisphere and because of its proximity to the ozone hole over Antarctica. In the summer, the UV Index in the United Kingdom is 6-8, while in Australia it is 10-14. UV radiation, a type of energy emitted by the sun, can cause skin damage, premature aging, and an increased risk of skin cancer. It is important for people in Australia to take precautions to protect their skin from UV radiation, such as wearing protective clothing, seeking shade, and using sun protection products like sunscreen and sunblock. The high levels of UV radiation in Australia are one of the main drivers of the sun care market in the country, as many people use these products to shield their skin from the harmful rays of the sun.
Surging Demand for Natural and Organic Formulations and Increasing E-Commerce Trend
In recent times, consumers have grown increasingly conscious of the synthetic chemicals present in cosmetic formulations and the potential side effects they may cause, such as skin irritation, allergies, dullness, and toxicity. As a result, there has been a surge in demand for natural and organic sun care products across the country. These products made from organic and natural ingredients are favoured for their skin-friendly properties, leading to their remarkable popularity. A survey conducted by the Consumer Policy Research Centre in 2022 revealed that more than 25% of Australian consumers consider the availability of sustainable products in the beauty and personal care sector as highly important.
Additionally, the widespread use of the internet, smartphones, and social media, particularly among the younger population, has had a significant impact on driving sales of sun care products through e-commerce channels. Online platforms provide consumers with a diverse array of innovative products to choose from. As of 2022, internet access is available to approximately 99% of Australians, as reported by the Australian Communications and Media Authority. Furthermore, the IAB Australia and Pureprofile Australian E-commerce Report 2021 indicated that 76% of customers purchased products online at least once a month. Among those customers, 70% bought non-grocery items, including beauty and personal care products, online on a monthly basis.
Launch of Innovative Products Driving the Market
The sun care market in Australia has seen a significant increase in the development of innovative products in recent years. These products offer new and improved ways to protect the skin from UV radiation and address other skin care concerns. Some examples of innovative sun care products include water-resistant sunscreens, natural sunscreens, anti-aging sunscreens, and sunscreens formulated with additional benefits, such as moisturizing properties, oil control, and even insect repellent. For instance, in June 2023, Advance ZincTek, an Australian manufacturer specializing in natural Sunscreen Actives, introduced a groundbreaking product called EcoZinc. This non-nano zinc oxide powder is a world-first, solar-powered solution designed for SPF-rated cosmetics and sunscreens.
Impact of COVID-19
The sun care market in Australia has experienced both favourable and adverse effects due to the COVID-19 pandemic. With more people staying at home during the pandemic, there has been an increase in outdoor activities like gardening, exercising, and spending time in the backyard. This has increased demand for sun care products to protect against UV radiation. Also, the pandemic has led to a decrease in international tourism to Australia, which has had a negative impact on the sun care market. It has, furthermore, led to disruptions in global supply chains, which has affected the availability of some sun care products in the country. Some manufacturers have also faced challenges with production and distribution due to lockdowns and restrictions. Overall, while there has been an increase in demand for sun care products due to more outdoor activities, the decrease in tourism and disruption to supply chains have had negative effects. However, with increased competition and new product innovations, the sun care market in Australia is expected to continue to grow in the coming years.
Key Players Landscape and Outlook
The sun care market in Australia is highly competitive, with several key players vying for market share. Some of the major players in the market include Unilever Australia Limited, Beiersdorf Australia Ltd., and Johnson & Johnson Pacific Pty Limited. These key players have been investing heavily in research and development to offer innovative sun care products that provide better protection against UV radiation and other skin care concerns. They have also been expanding their product portfolios to cater to the diverse needs and preferences of consumers in the Australian market.
In January 2023, considering the high consumer preference for active ingredients, Adore Beauty, the Australian skincare and beauty e-tailer, introduced a new range of sun protection products under its private label called Ab Lab. These products are formulated with a variety of active ingredients for enhanced effectiveness.
Overall, the outlook for the sun care market in Australia is positive, with increasing awareness of the dangers of UV radiation and a growing demand for effective sun protection products.