About one in eight people recently skipped buying personal hygiene or cleaning products to afford other essentials, according to research conducted on behalf of charity Good360 Australia.
"Our research has uncovered the heartbreaking reality that millions of Australians are struggling to afford everyday basics," managing director Alison Covington said.
Hygiene poverty occurs when people are unable to afford everyday essential products such as soap, shampoo, toothpaste, deodorant, household cleaning products and feminine hygiene products.
"Hygiene poverty can cause feelings of low self-esteem, embarrassment and shame, and make it difficult for people to maintain their health," Ms Covington said.
"It takes a devastating toll on people's mental and physical wellbeing."
People unable to afford basic needs often avoid social events or commitments such as work and school, Ms Covington added.
"There should not be millions of Australians, including children, going without the basics they need to thrive," she said.
The survey, involving a nationally representative sample of 1000 people, also found that one in seven respondents struggled to afford cleaning products in the last six months, while one in eight experienced hygiene poverty for the first time.
A further 19 per cent feared they would soon be unable to afford hygiene or cleaning products and 12 per cent of people were experiencing hygiene poverty for the first time.
Women and young people were more likely to be impacted by the issue, with almost a third of young people and 21 per cent of women concerned about affording essential hygiene and cleaning products, compared to 16 per cent of men.
Liverpool Women's Health Centre, in Sydney's southwest, helps more than 5000 women per year and has found personal items such as soap, deodorant and feminine hygiene products to be in high demand.
"Everyday women that you wouldn't necessarily expect to need a deodorant or a packet of soap are taking it," chief executive Kate Meyer told AAP.
"They're thrilled. They come and they check our freebie table that we have set up in the reception area and their eyes light up.
"They're so grateful to have these things that they thought that they were going to have to make do without."
Ms Meyer said one of the centre's elderly clients was "over the moon with gratitude" when she was given incontinence products.
"That's horrifying for us because these are things that she needs for her everyday living," she said.
"They shouldn't be something that gives her such joy.
"They should be things that she's able to get in her groceries every week."
Good360 channels unsold consumer goods to charities and disadvantaged schools to help people in need, preventing the surplus goods from going to landfill.