According to Mordor Intelligence, the Australian beauty and personal care products market is forecasted to reach USD 6.7 billion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 4.48% during the forecast period (2020 – 2025).
Although not the most populated country (its population is less than 26 million), it’s a wealthy country with a GDP exceeding $60,000 per person per year and has one of the highest Human Development Indicators (HDI) in the world.
Regulatory Context
Cosmetics and therapeutic goods
In Australia, a cosmetic product is defined as “a substance designed to be used on any external part of the body – or inside the mouth – to change its odour or appearance, cleanse it, keep it in good condition or protect it.”
A cosmetic product is not considered a therapeutic good, which is regulated by the Therapeutic Goods Administration (TGA).
Other regulators
The Australian Industrial Chemicals Introduction Scheme (AICIS) regulates chemical substances. Each ingredient in a cosmetic formula must be listed in the AICIS inventory. If an ingredient is not listed in the inventory, it must be categorized based on its health and environmental hazard. Biorius can help in this process. Both listed and non-listed ingredients must be declare annually to the AICIS.
The Australian Competition and Consumer Commission (ACCC) regulates label requirements, including the INCI list.
BIORIUS strongly recommends following the labeling guidance provided by our experts, since labeling is strongly regulated in Australia.
In order to be allowed to sell cosmetic products in Australia, cosmetics brands have to find an importer established on the Australian territory and registered with the AICIS. This importer is responsible for the compliance of products that he distributes.
How does it work?
BIORIUS ensures the compliance of cosmetic products according to the requirements of the Australian authorities.
The regulatory revision consists of a formula review and a label & claims review.
Formula Review
Assessment of the formula according to the requirements established by the AICIS & the TGA.
BIORIUS’ experts review the classification of the product to ensure that it can be considered a cosmetic.
Next, they proceed to a toxicological analysis to verify the formula’s safety.
Finally, they check the ingredients according to various standards:
- AIICS (Australian Inventory of Industrial Chemical Substance), including the confidential portion of the inventory
- Customs Prohibited Imports Regulation
- SUSMP (Standard for the Uniform Scheduling of Medicines and Poisons)
Upon completion of this review, a formula review report is issued, which includes expert conclusions (categorization of the product, toxicological analysis & ingredients review).
Label & Claims Review
Assessment of the label according to the requirements established by the ACCC.
Evaluation of the product label (ingredients list, symbols, legal requirements, etc.) and claims substantiation.
The labels & claims review consists of a report containing all the information that must appear on the labeling material:
- Required elements
- Presence of required elements (primary packaging, secondary packaging & leaflet)
- Final INCI list
- Claims
- Conclusion of each claim
- Expert commentary – strategic recommendations are provided for updating the label
Specific product categories
CBD Products
CBD products are authorized in Australia under certain conditions:
- In hemp seed oil for purposes other than internal human use containing 50 mg/kg or less of cannabinoids, including 20 mg/kg or less of tetrahydrocannabinols
- If labelled with either of the following warning statements:
o Not for internal use
o Not to be taken
SPF Products
SPF products can be considered cosmetics if the SPF is the secondary function of the product.