Australia’s beauty retail landscape is undergoing a major transformation, with online marketplaces now generating as much revenue as all major specialist beauty retailers combined, according to a new report from global ecommerce accelerator Pattern.
The 2026 State of Beauty & Personal Care in Australian Ecommerce report shows that Australia’s online beauty market is forecast to grow 47% to US$2.2 billion by 2030. It also reveals the shopping journey is increasingly being influenced by social media and AI.
“Australia’s beauty market is growing rapidly, but the balance of power is shifting,” said Merline McGregor, Managing Director for Pattern Australia.
“AI, social media and marketplaces are changing how consumers find, research and purchase beauty products. As online beauty sales surge in Australia over the next few years, the brands that grow will be those that understand how shopper behaviour is evolving across multiple touchpoints.”
Beauty product discovery and purchasing
Beauty has become one of the most socially influenced retail categories, as consumers discover products through creators, watching demonstrations and researching ingredients long before deciding where to buy.
Nearly half (47%) of beauty buyers are more likely to purchase a product following a creator recommendation, compared with just 15% of non-beauty buyers.
Instagram and Facebook each influenced 47% of beauty buyers to consider or purchase products in the past year, followed by YouTube (45%) and TikTok (38%). However, social media discovery is not necessarily translating into purchases on the same platform.
When beauty buyers discover a product through social media, 39% say they would most likely purchase it directly from a retailer or brand website, while 32% would head to Amazon.
Amazon challenges brand loyalty
Amazon recorded a $66.7 million year-on-year increase in Australian beauty and personal care sales in Q4 2025, leading to the marketplace now accounting for 19.9% of Australia’s online beauty market.
Research also reveals that 71% of Australian online beauty buyers intend to purchase from Amazon in the next 12 months. However, findings uncover a growing challenge to brand loyalty as 43% of consumers say they are open to purchasing a similar product from a competing brand if their first choice isn’t available on Amazon.
“Brand loyalty has traditionally been a major strength of the beauty industry, but convenience and availability are increasingly influencing purchasing decisions,” said Ms McGregor.
“When more than four in 10 beauty buyers are prepared to switch brands because they can’t find their preferred product on Amazon, that’s a significant commercial risk.”
AI accelerates the shift in beauty shopping
AI is impacting the beauty shopping journey in Australia, with 38% of beauty buyers relying more on AI tools to discover products online compared with the previous year. More than a quarter (27%) have used ChatGPT or a similar AI assistant when researching or purchasing products, while 55% trust AI-generated product recommendations.
“A great product can only go so far if consumers can’t discover it, find credible information about it or purchase it through their preferred channels. Brands need to make themselves visible and available at every stage of the shopping journey to grow their share of Australia’s beauty market,” Ms McGregor said.
