Economy

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Beauty and Home Care grows despite difficult environment

A well-groomed appearance and a beautiful home are important to people in Germany, even in difficult times. The value of beauty and home care products sold in Germany and abroad in 2023 rose by 8.4 per cent to 33.4 billion euros - a new record. Export sales increased by 8.1 per cent to 12.3 billion euros, while domestic sales rose by 8.6 per cent to 21.1 billion euros.

Nevertheless, the economic situation of companies has deteriorated. The main reason for this is the increase in the cost of energy and raw materials, the shortage of skilled labour and the sharp rise in the burden of regulations.

Mixed outlook for 2024

In view of the continuing rise in costs and the possible effects of a predicted recession, companies are finding it difficult to forecast business development. The industry is optimistic that its services and products will continue to meet with a high level of consumer interest and is forecasting sales growth of 2.5 per cent.

Beauty and Home Care market
Germany 2023

Cosmetics remain consumer favourites

Beauty care products remain in demand despite the gloomy consumer climate: sales of body care and cosmetics rose by 10.6 per cent to 15.8 billion euros. Deodorants recorded the highest growth (up 21.2 per cent), followed by decorative cosmetics, i.e. lipstick, make-up, nail polish and the like (up 17.7 per cent). Fragrances followed with a 15.0 per cent increase in sales.

Clean and neat clothes are in demand

The trend towards a positive image is reflected in the consumer desire to wear clean and well-groomed clothing. The leading products in the household care segment are light-duty and special detergents (up 8.1 per cent). People also spent significantly more on laundry additives (up 7.6 per cent) and fabric conditioners (up 5.1 per cent).

People prefer to buy beauty care products at drugstores

People in Germany prefer to buy their cosmetics in drugstores. The picture from previous years is also confirmed in 2023, with this sales channel accounting for 51 per cent of beauty care products, followed by specialised trade in second place with 20 per cent. E-commerce is growing strongly with an increase of 23.8 per cent. However, its share of the overall market is still comparatively low at 7 per cent.

Drugstores are also the number one place to go for household care products

Washing, care and cleaning products are also predominantly bought in drugstores, accounting for 34 per cent of purchases, but discounters are also important for this business, with a share of 26 per cent. E-commerce is also growing strongly here with an increase of 29.2 per cent. However, its share of the overall market is only 4 per cent.

Society in permanent crisis mode - economy under pressure

With violence and war in Europe and the Middle East and the resulting further intensification of the global political crisis, the tense situation for companies has also intensified. In a recent survey of IKW member companies, 62 per cent stated that they were severely or very severely affected by the cost increases for energy and raw materials. Added to this are increased regulatory requirements.

"Rising costs and increased effort due to more and more regulation and bureaucracy are causing problems for our companies.Our industry is reaching its limits.Rapid relief, a reduction in bureaucracy and a sense of proportion in regulations are now required."

Thomas Keiser,
IKW Director General

Facts, figures and graphics:

Further facts and figures as well as the market graphics in large format – in German only –can be found here.

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