Recent research shows Australians treat beauty and personal care as a category they won’t abandon, even when prices rise. The study found that 27% of adults say skincare, haircare and cosmetics are non-essential purchases they would not give up, no matter the cost.
Beauty seen as non-negotiable despite cost
Women are more likely to hold this view, with 37% indicating the same stance, compared with 16% of men.
Price remains influential, however. About a third of respondents admit they wait for major sales to stock up on personal care items. The category tops the list of products people are most willing to postpone buying, outpacing pantry staples, clothing, gifts and cleaning supplies.
Shoppers upgrade while cutting back elsewhere
Even with price sensitivity, consumers are not reducing overall beauty spend. Instead, they are shifting toward prestige-style and “lux-for-less” brands that have entered supermarkets and mass-market outlets. One notable case is MCoBeauty, whose revenue reportedly jumped from roughly $11 million to $262 million in four years.
Households appear to fund these upgrades by economizing on other categories such as laundry, cleaning and pantry basics. The latest State of Shopping report notes that spreading purchases across multiple retailers has become the most common cost-of-living tactic, overtaking outright cutbacks or switching to cheaper brands.
Three consecutive Reserve Bank rate hikes this year have lifted the cash rate to 4.35%.
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Blake Wright, Sales Director at Shopfully, explained that the real challenge for retailers is not stopping shoppers from trading down on everyday items. “Nobody’s going to stop a shopper trading down on dishwashing liquid. The prize is being the retailer they decide is worth paying more at, for this one thing, on this one trip,” he said.
Sales, parents and millennials drive the market
Parents are especially active during promotional periods. The data shows 51% of those with children use sales to buy personal care ahead of time, versus 23% of childless shoppers. Parents also label the category non-negotiable at a higher rate, 36% compared with 21% of others.
Millennials demonstrate strong commitment as well. 46% say they stock up on beauty products during major sales, and one in three people aged 18-34 assert they would not give up these items regardless of price.
Despite the promotional intensity, the purchase journey remains largely offline. Across pharmacy, beauty, health and wellness, 91% of Australians intend to buy at least some items in-store, while only 4% plan to shop exclusively online.
Retail competition shifts early
Digital catalogue activity supports this trend. Between January and June, engagement with personal care listings rose 16%, and clicks per listing increased by more than 30%, even though the number of products displayed did not change. Shoppers are browsing more but still completing transactions in physical locations.
In this environment, retailers that simplify price visibility, enable easy purchase planning and facilitate swift in-store action are likely to capture the most spend, as beauty spending overall continues to hold up.