Australia's beauty ecommerce sector is experiencing a significant shift, with online marketplaces now generating revenue comparable to that of all major specialist beauty retailers combined, according to a new report from global ecommerce accelerator Pattern. The report, titled "2026 State of Beauty & Personal Care in Australian Ecommerce," indicates that the country's online beauty market is projected to grow 47% to reach US$2.2 billion by 2030.
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Marketplaces like Amazon are reshaping competition, contributing approximately A$200 million in online beauty sales during Q4 2025, on par with the A$199.3 million reported collectively by prominent retailers such as Mecca, Sephora, Adore Beauty, and Chemist Warehouse. Merline McGregor, Managing Director for Pattern Australia, noted that while there are opportunities for beauty brands, the landscape is changing, making it crucial for retailers to adapt.
Social media is also playing a transformative role in Australia's beauty shopping experience. Nearly 47% of beauty buyers are more likely to purchase a product after seeing a recommendation from a creator, significantly higher than the 15% among non-beauty purchasers. Platforms like Instagram and Facebook influenced 47% of beauty buyers, with YouTube at 45% and TikTok at 38%. However, most consumers prefer to buy products through retailer websites or Amazon, with 39% opting for brand sites and 32% choosing Amazon after discovering products via social media.
Amazon saw a year-on-year increase of A$66.7 million in beauty and personal care sales in Q4 2025, now commanding 19.9% of Australia's online beauty market. Research indicates that 71% of Australian online beauty buyers plan to make purchases from Amazon over the next year. However, brand loyalty is under threat, with 43% of consumers open to buying alternative products if their preferred choice is unavailable on Amazon. McGregor highlighted the need for brands to ensure availability across multiple channels, as consumers are increasingly willing to switch products for convenience.
Additionally, AI is playing a significant role in beauty shopping, with 38% of buyers using AI tools more than in the previous year. Over a quarter have engaged with AI assistants like ChatGPT when researching or purchasing beauty products, and 55% trust AI-generated recommendations.
As online beauty sales continue to rise, McGregor emphasized that brands must adapt to the evolving landscape to enhance their visibility and availability throughout the consumer shopping journey.