Mr. Held, the German economic output shrank by 0.3 percent in 2023. How did the business of IKW member companies develop in this context?

Georg Held: The sluggish economy, rising prices, and alarming news from international crisis hotspots created a bleak consumer climate in 2023. However, despite the general reluctance to buy: people continue to spend money on beauty and household care products even in difficult times – more than ever before. Thus, our industry once again fulfilled its role as a stabilizing factor in the crisis.

Mr. Keiser, which products were particularly popular in 2023?

Thomas Keiser: Bestsellers included deodorants, cosmetics, and fragrances – products that help express one's personality and feel beautiful and comfortable in one's skin. We also saw solid growth in various categories of laundry, cleaning, and cleaning agents: consumers value well-maintained clothing and a cozy home. Overall, sales of our products in the German retail sector increased by 8.6 percent.

Inflation has taken a significant toll on household budgets in Germany. How do you explain the significant growth in beauty and household care products?

Thomas Keiser: These products are indispensable. Not only because they are essential everyday helpers but also because they contribute to a positive sense of well-being. Studies show, for example, that cosmetics provide confidence and help us go through life with self-assurance. And we all know the satisfaction of a hygienically clean, sparkling home.

What is the economic situation for companies? What challenges do you see?

Georg Held: Our member companies have to deal with significantly increased costs for energy and raw materials. Nearly two-thirds of companies feel severely or very severely burdened as a result. Additionally, there are structural problems: many companies lack skilled workers, particularly in technical professions. The bureaucratic burden has also increased enormously. In many discussions in Germany and at the EU level, we appeal to responsible politicians to exercise more prudence in relevant legislation.

How does the industry approach sustainability?

Thomas Keiser: Responsibility for future generations is the foundation of our actions. This includes environmental and climate protection initiatives with impressive successes – such as reducing the emission of climate-damaging gases. Companies and IKW report on this based on scientific studies and statistics. Sustainability also encompasses social and economic aspects: In Germany, the industry contributes 9.5 billion euros to prosperity and secures 50,000 jobs.

What do you expect for 2024?

Georg Held: The German economic engine continues to sputter. The federal government and economic researchers predict at most minimal growth for the economy this year. These are unfavorable conditions for consumption. However, we have proven that we can respond to consumer behavior and meet their needs even in such a complex situation. Therefore, we expect our industry to continue its growth trajectory.