Beauty shock: Marketplaces, social media, AI are reshaping online beauty market

Uyen Duong

12 hours ago

Australia’s online beauty market is shifting as marketplaces, social media and AI influence product discovery and purchasing.

Pattern’s State of Beauty & Personal Care in Australian Ecommerce 2026 report forecasts 47 per cent growth to $2.2 billion by 2030.

In the fourth quarter of last year, beauty sales across marketplaces reached about $200 million, compared with combined sales of $199.3 million from Mecca, Sephora, Adore Beauty and Chemist Warehouse. Amazon’s beauty and personal care sales rose $66.7 million year on year, taking its share of Australia’s online beauty market to 19.9 per cent.

Pattern Australia MD Merline McGregor said marketplaces are competing directly with retailers. According to the report, 71 per cent of Australian online beauty buyers intend to buy from Amazon in the next year, while 43 per cent would consider a similar product from another brand if their preferred product was unavailable.

“Consumers aren’t thinking about a brand’s distribution strategy. They simply expect beauty products to be available through the channels they use, and they’re willing to switch brands for that convenience,” McGregor said.

Social media is also shaping product discovery. Nearly half of beauty buyers are more likely to purchase following a creator recommendation, compared with 15 per cent of non-beauty buyers. Instagram and Facebook each influenced consideration or purchase among 47 per cent of beauty buyers, followed by YouTube and TikTok.

“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,” McGregor said.

However, social media discovery does not always lead to purchase on the same platform. Among beauty buyers who discover products through social media, 39 per cent are most likely to buy from a retailer or brand website, while 32 per cent would buy from Amazon. Consumers may discover a product on TikTok, research it through Google and complete the purchase elsewhere.

AI is also shaping product discovery. Some 38 per cent of beauty buyers use AI tools more often than last year to find products online, while 27 per cent have used ChatGPT or a similar assistant to research or purchase products. More than half (55 per cent) trust AI-generated recommendations.

McGregor said brands need to ensure their products and information can be found across the channels consumers use to search and buy.

“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,” she said.

• Further reading: Oz Hair & Beauty suffers online data breach .