Mecca and Sephora Among Beauty Retail Giants Outpaced by Online Marketplaces

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. The growing influence of marketplaces like Amazon is reshaping competition, generating approximately A$200 million in online beauty sales in Q4 2025, matching the A$199.3 million collectively reported by specialist beauty and health retailers, including Mecca, Sephora, Adore Beauty and Chemist Warehouse.

“Australia’s beauty market is growing rapidly, but the balance of power is shifting. Marketplaces are now competing directly with the country’s established beauty retailers, while consumers are becoming less tied to traditional shopping channels and even their favourite brands,” said Merline McGregor, Managing Director for Pattern Australia.

“While there is significant opportunity for beauty brands, there is also the risk of losing customers to competitors that are easier to discover and purchase online.”

Influencers Reshape Beauty Product Discovery and Purchasing

Social media is transforming the beauty shopping journey in Australia, with nearly half (47%) of beauty buyers 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.

“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,” said McGregor. “But discovery and purchasing are increasingly happening in different places. A consumer might discover a skincare product on TikTok, research it on Google and then purchase it from Amazon. Brands need to connect these channels to turn consumer interest into sales.”

Amazon Challenges Beauty Brand Loyalty

Amazon recorded a 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. 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,” explained McGregor.