This is the one category shoppers protect, no matter what it costs

New research shows 27% of Australians call beauty non-essential and unskippable, even as they cut back everywhere else in the basket.

Yajush Gupta
Yajush Gupta
News · 16 Sept 2026 · 2 min read
Above This is the one category shoppers protect, no matter what it costs. Dynamic Business

When it comes to beauty and personal care, Australians don't necessarily view it as discretionary spending.

According to recent YouGov research commissioned by Shopfully, 27% of Australian adults consider skincare, haircare, and cosmetics to be non-essential purchases they wouldn't be willing to give up, regardless of the price. This sentiment is even stronger among women, with 37% feeling this way, compared to 16% of men. However, price still plays a significant role, with around a third of Australians taking advantage of major sales events to stock up on personal care products. In fact, personal care is the category people are most likely to wait for a sale on, surpassing even essentials like pantry staples, as well as clothing, gifts, and household cleaning.

That protection doesn't mean the category is immune to budget pressure. Australians appear to be trading up in beauty rather than cutting it, with prestige-style and "lux-for-less" brands increasingly appearing in supermarkets and mass-market retailers. MCoBeauty is the standout example, reportedly growing revenue from around $11 million to $262 million in four years.

Households appear to be funding that upgrade by trading down elsewhere, on laundry, cleaning and pantry basics, and by spreading purchases across more retailers to find value. According to Shopfully's State of Shopping report, spreading spend across retailers is now the most common cost-of-living tactic in the country, ahead of cutting back altogether or switching to cheaper brands. That's holding even with three RBA rate rises this year taking the cash rate to 4.35%, with cuts not widely expected before 2027.

Blake Wright, Sales Director at Shopfully, said the real fight for retailers isn't stopping shoppers trading down on everyday items.

"Nobody's going to stop a shopper trading down on dishwashing liquid. The prize is being the retailer they decide is worth paying more at, for this one thing, on this one trip."

Promotions drive the category

Parents are particularly engaged with beauty promotions, with 51% using sales periods to buy personal care ahead of time, compared with 23% of people without kids, and more likely to call the category non-negotiable, 36% versus 21%. Millennials are the most committed age group, with 46% saying they stock up on skincare, haircare and cosmetics during major sales, while one in three 18 to 34 year olds say beauty is something they wouldn't give up regardless of cost.

The store still closes the sale

Despite the category's promotional intensity, the purchase journey hasn't shifted online. Across pharmacy, beauty, health and wellness combined, 91% of Australians say they'll make at least some purchases in-store, with only 4% buying exclusively online. Shopfully's own platform data supports this, between January and June, digital catalogue engagement with personal care products rose 16%, and clicks per listing increased more than 30%, without any increase in the number of products listed. Shoppers are browsing more, but still completing the purchase in-store.

The fight happens before the aisle

Beauty holding up doesn't mean the spend is guaranteed for any one retailer. Shoppers are watching prices, spreading purchases across more retailers, and taking longer to decide. That shifts the real competition earlier, to while someone is still comparing and deciding which retailer earns the trip, and which one earns the premium.

Wright said the retailers and brands that make it easiest to spot the value, plan the purchase and act on it in-store are the ones set to win that spend, even as beauty spending overall continues to hold up.

YG
Yajush Gupta
Yajush Gupta reports for Dynamic Business — covering the founders, money and policy shaping Australia's economy.
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