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Beauty and home care products still in demand even in times of general consumer restraint

Cosmetics and home care products were once again at the top of consumers' shopping lists in 2024. Retail sales rose by 3.6% to 34.6 billion euros. Domestic sales grew by 7.1% to 22.6 billion euros, while export sales fell by 3.3% to 12.0 billion euros. Despite weak macroeconomic conditions and mounting pressures, the industry is maintaining its stable growth trajectory. However, high costs and increasing bureaucracy are reducing investment opportunities and threatening the industry's competitiveness, particularly among SMEs. Over half of companies feel that rising energy prices, labour costs and inflation are placing a heavy burden on them. In addition to cost pressures, new reporting obligations under the 'Green Deal' and supply chain requirements are making business more challenging. New levies and legal uncertainties add to this burden.

2025: Not an easy year, but one that can be shaped

Economic institutes expect a weak economy in Germany and Europe, as well as global uncertainties. Even with rising incomes, German consumers are likely to remain thrifty. Nevertheless, the IKW expects stable growth in its own industry.

Beauty and Home Care market
Germany 2024

Beauty care products remain popular

Even in times of general consumer restraint, beauty care products remain popular: sales of body care and cosmetics rose by 7.0% to EUR 16.9 billion. Decorative cosmetics, i.e. lipstick, make-up, nail polish etc., recorded the highest growth (plus 10.1%), followed by oral and dental care products (plus 9.2%). Shaving care, pre- and aftershaves followed with an 8.3% increase in sales.

Clean clothing still in demand

Clean and well-maintained clothes remain an important topic for the population in 2024. Among household care products, the biggest increases were recorded for fabric softeners (up 22.4%) and universal, heavy-duty and color detergents (up 9.7%). People also spent significantly more on room fragrances (up 9.5%).

Drugstores remain the largest distribution channel for beauty care products

People in Germany prefer to buy their cosmetics in drugstores. The picture from previous years is also confirmed in 2024, with this sales channel accounting for 52% of beauty care products, followed by specialist retailers in second place with 19%. E-commerce is growing strongly with an increase of 17.2%. However, its share of the overall market is still comparatively low at 9%, although it is now one percentage point ahead of the discounters.

Drugstores remain the number one place to go for household care products

Washing, care and cleaning products are also predominantly purchased in drugstores with a share of 35%, but discount stores are also important for this business, with a share of 27%. E-commerce is also growing strongly here with an increase of 20.2%. However, its share of the overall market is only 5%.

No relief so far - economic situation remains tense

The tense situation for companies continues due to international trouble spots and increasing threats to free trade caused by isolationist tendencies. In a recent IKW survey, 51% of member companies stated that they were severely or very severely affected by cost increases for energy and raw materials. Added to this are increased regulatory requirements. Nine percent of respondents believe that their company's existence is under threat.

"Our companies have consistently demonstrated their ability to overcome an otherwise gloomy consumer climate through innovation and consumer-oriented products. Therefore, we expect a 2.3% sales growth by 2025."

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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