Germany at its Most Beautiful

Close-up of eyeshadow and make-up products | © matka_Wariatka -

Source: Close-up of eyeshadow and make-up products | © matka_Wariatka -

Market Potential

Germany is the largest cosmetic market in Europe followed by France, UK, Italy and Spain.

In 2013, Germans spent over 12.9 billion euros in personal care products. The expected compound annual growth rate (CAGR) for the personal care market from 2012 to 2020 is 1.4%. Decorative cosmetics and fragrances are expected to perform above average market development with a CAGR of 2.2% and 1.7% respectively, as per VKE.

According to the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW) there was an increasing demand, especially for decorative cosmetics (3.4%), and distinctly behind, for hair care (+1.2%) and skin care (0.8%) products. Other segments like women’s
(-0.5%) and men’s fragrances (-0.2%), bath and shower supplements (0.0%), and synthetic detergents (-3.3%) hit a slight bump last year. It is expected that these segments will make up for lost ground this year.The IKW sees that demand will continue to grow in 2014.The market for detergents, household cleaning and maintenance products expanded by 0.2% to 4.33 billion euros in 2013. Strongest growth drivers in this segment were laundry detergents (0.6%) and fabric softeners (1.5%).

The largest market segments in the German cosmetic industry are hair care, skin care, oral care products and make–up. The hair care market gained 12% in 2013 and reached 3.06 billion euros. Female fragrances became a one billion euro market in Germany in 2011 – it raised that mark further in 2012 to 1.06 billion euros and stagnated in 2013. Skin care, with a 2.8 billion euro turnover, grew by 0.8% in 2013. Men’s cosmetics is a constantly growing market spurred by the increasing awareness among men for personal care products. Another segment that is rapidly growing is natural cosmetics, which expanded approximately by 7% in 2013.

Germany has around 43,000 successful cosmetic institutes which work for known brands, as well as private labels. Their success is based on guaranteed “made in Germany” quality which is also highly valued abroad.