Australia’s Economic Analysis

Type
Essay
Pages
6
Word Count
2251
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N/A
Course
N/A
AUSTRALIA'S ECONOMIC ANALYSIS 1
Australia’s Economic Analysis
Australia's Cosmetics Industry Economic Analysis
Introduction
Australia is a continent and country enclosed by the pacific and Indian oceans. As part of the
commonwealth countries, Australia’s head of state is (HRH) Queen Elizabeth followed by the prime
minister who is publicly elected. Australia benefits from a strong economy thanks to its trade relation
with Asia.
Its major industries include agriculture and mining with one of the most efficient farming
rankings in the world. The country is trying to expand its other industries and rely less on the mining
industry.
Australia has an ageing population with a median age of 37.8 years. It also benefits from a
larger educated and skilled work force in comparison to its surrounding neighbors.
The beauty and personal care industry in Australia represents one of the most promising
opportunities for entering and expanding with annual revenues of over 4 Billion dollars and an
average growth rate of 2.1%. (Richardson, 2015). According to recent statistics, the industry has
AUSTRALIA'S ECONOMIC ANALYSIS 2
more than doubled over the last two decades, with many consumers increasingly responding to the
quality and purity of Australian products which range from skin health and beauty care products
such as sunscreens, hair products to cosmetics among others. This may be particularly attributed to a
diverse number of social, political and economic factors, the rising consumer incomes coupled with
the changing lifestyle trends in Australia (Barbalova, 2011).
Potential of the Industry
The beauty and personal care industry in Australia currently offers one of the highest
potentials for future growth. With more than 200 Australian companies currently exporting their
cosmetics products overseas, the industry has currently achieved international recognition. The
recent years have also witnessed a significant growth of ethical consumerism in which a number of
current and potential customers are increasingly taking into account the social, environmental and
ethical consequences of their purchases, leading to an increased demand for Australian beauty and
personal care products (Dutton, 2009).
The increased demand is particularly attributed to the consumer’s perception of high quality
and ethical manufacturing standards of Australian beauty and personal care products as Australian
manufacturers are shifting more towards natural, organic and sustainably made products.(Ibis World,
2015).
The 10 Economic, Social and Political Factors for Growth
There are a diverse number of economic, political and social factors that can significantly
affect and help in the successful entry into the contemporary beauty and personal care industry of
Australia.
1. Ageing Demographic