INTHEBLACK November 2026 - Magazine - Page 23
LUXE FOR LESS
Market growth brings more competition.
The McKinsey report notes consumers are
embracing lower-priced brands that boast
clinical credibility without luxury price tags.
Meanwhile, luxury skincare faces pressure
from non-surgical cosmetic procedures,
such as dermal fillers and laser therapies
designed to enhance physical appearance.
The global “dupe” beauty market, which
comprises affordable products that closely
mimic the performance, colour, texture, scent
or branding of a luxury beauty item, is also
poised for strong growth over the next
decade, expanding from US$4.6 billion
(A$6.4 billion) in 2026 to US$14.8 billion
(A$20.5 billion) by 2036. One of the biggest
players in the dupe market, MCoBeauty,
founded by Australian entrepreneur
Shelley Sullivan, was sold in February 2026
in a deal that valued the company at above
A$1 billion.
“The dupe industry treads a fine line in
how it navigates intellectual property laws,” says
Isabel Ley, lawyer and trademark attorney at
Litton Legal. “There is often not enough true
innovation in product formulas for patents to
be an issue, as many do not meet the threshold
to be patentable. Also, words like ‘glow’ and
‘flawless’ may be closely associated with the
names of certain luxury products, but the
words themselves are not trademarked.”
Growth in private labels — products
that a retailer develops and sells under
its own branding — is also increasing
competition across the industry. The global
private label beauty market is projected to
reach US$18 billion (A$25 billion) by 2032,
up from US$12.3 billion (A$17.1 billion)
in 2024.
Adore Beauty, which stocks more than
14,000 products and recorded revenue of
WHAT DOES “CLEAN BEAUTY” MEAN?
Data from Euromonitor shows sustainable health and
beauty products grew at a rate of 9 per cent compounded
annually between 2020 and 2023, outpacing their
non-sustainable counterparts. In its 2025 global beauty
survey, nearly 46 per cent of fragrance consumers said
they choose products with at least one “green” feature,
while about one-quarter of global consumers were
classified as “clean beauty advocates”, favouring, among
other things, eco-friendly packaging.
Michelle Ruzzene, editor of independent retail beauty business
magazine Retail Beauty, says that while many consumers would
like to buy sustainable products, the popular umbrella term of
“clean beauty” presents challenges.
“The definition of ‘clean beauty’ is quite opaque,” she says.
“For some brands, it means formulating without certain
ingredients. For others, it extends to vegan formulations,
sustainable sourcing, packaging or broader environmental
credentials. The problem is that there is no single, universally
agreed definition of what ‘clean’ actually means.
“When brands use the term without explaining the standards
behind it, particularly where sustainability or environmental benefits
are implied, greenwashing can be a risk across the industry.”
Although consumers have a desire to make sustainable choices,
price plays an important role in their purchase. Euromonitor
analysis shows global beauty consumers are becoming more
price-sensitive and value-driven, engaging in more deliberate
purchasing, trading down in some categories and seeking greater
value rather than simply cutting beauty spending altogether.
“If two products are similarly priced, consumers are more likely
to choose the sustainably or ethically sourced option, but they
may not be willing to pay a significant premium for it in today’s
market,” says Louise Heath, partner and consumer products and
retail sector lead at Deloitte Australia. “Sustainability, ethical
sourcing and sustainable packaging are increasingly becoming
underlying expectations rather than features that automatically
justify a higher price.”
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