Kimber Maderazzo is a professor of marketing at the Pepperdine Graziadio Business School and a former senior beauty executive at brands like Proactiv, Procter & Gamble, and Estée Lauder. Kimber shares her thoughts on the impact tariffs could have on the Australian beauty industry.
Australia’s beauty scene is enjoying a moment in the global sun, from Bondi-born brands dominating U.S. shelves to unparalleled access to clinically proven skincare lines with international acclaim.
Unfortunately, behind the beauty lies a harsh reality: Fast-growing Australian beauty brands are much more exposed to global tariff shocks and trade disruptions. Despite Australia’s web of free trade agreements, ripple effects are already being felt on the local shores of the U.S., EU, and China. Brands that rely on imported packaging, active ingredients, or finished goods are experiencing delays and price inflation, and that’s particularly true for those buying from or selling into the U.S. and China. This is creating significant headwinds for Australian brands looking to export to the U.S.
To weather this storm, Australian beauty brands need to focus on transparency and storytelling, showcasing ethical sourcing, sustainability, or innovation, now more than ever, to justify increasing price points. Higher tariffs are bad news for beauty products, particularly international ones already facing a tough U.S. market. These challenges are transforming the strategic thinking of retailers and consumer buying behavior.
Retailers could be reluctant to stock or replenish products, given higher wholesale costs, and might shift their purchases to brands that are unaffected by tariffs or in-house labels. Cult favorite brands may be easily replaced by domestic products with similar effectiveness at a lower price.
“Australian beauty brands need to focus on transparency and storytelling, showcasing ethical sourcing, sustainability, or innovation, now more than ever, to justify increasing price points.”
The beauty industry itself is being rocked by tariffs, and the trickle-down effect has proven exceptionally difficult, especially on small businesses that are less heavily backed than large multinational corporations. We will, unfortunately, see some of the small independent brands close. They don’t have the infrastructure to handle the expensive, confusing, and slow shifts in sourcing to make it work.
While Australian beauty has gained international recognition for its focus on clean, sun- smart, and low-maintenance beauty, the next phase requires more. Innovation must be a top-of-mind business imperative, not a product feature. For Australian beauty founders to remain competitive amidst increasing costs, global supply chain pressures, and changing trade winds, they too will need to work closely with industry experts to right-size their operations, refine supply chains, and double down on sustainable innovation.
Australian beauty has introduced so many indie and clinical brands that rely on overseas distribution, they have the momentum and talent to lead globally. They will need to strengthen their strategic foresight to navigate in a more volatile trade environment. Whether it’s tariffs, shipping crises, or ingredient access, one thing is clear: in global beauty, local resilience is no longer optional–it’s essential.
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