Market Data

• Sales revenues increase to EUR 34.6 billion in 2024
• Strongest growth in decorative cosmetics, oral and dental care and detergents
• Increasing economic challenges and bureaucracy place companies under significant pressure

Frankfurt am Main, 5 December 2024: Beauty and home care products remain at the top of consumers' shopping lists in 2024. According to projections by the German Cosmetic, Toiletry, Perfumery, and Detergent Association (IKW), retail sales of these products increase by 3.6 percent to EUR 34.6 billion. Domestic sales grow by 7.1 percent to EUR 22.6 billion, while export sales decline by 3.3 per cent to EUR 12.0 billion. Despite weak macroeconomic impetus and increased burdens, the industry maintains its stable growth course. However, high costs and increasing bureaucracy are reducing the scope for investment and are threatening the competitiveness of the industry, which is strongly characterised by small and medium-sized businesses.

Bestseller: cosmetics

Despite restrained consumer spending, domestic sales of beauty care products rise by 7.0 percent to EUR 16.9 billion.Decorative cosmetics, such as lipstick, concealer and mascara, grow by 10.1 percent, followed by oral and dental care products with an increase of 9.2 percent. Hair care products, the category with the highest overall revenue, also grow significantly by 6.0 percent. "In a time of crisis and conflict, a well-groomed appearance and personalised styling are even more important to consumers. Our companies fulfil these needs with quality and innovations - the key to the industry's robust growth", says IKW President Georg Held.

Home care: a key market

Home care products are also showing strong growth in the domestic market: fabric conditioners increase by 22.4 percent, heavy-duty laundry detergents by 9.7 percent. The second-strongest sales category after detergents, hard surface cleaners, records an increase of 4.1 percent, while dishwasher detergents, the third-strongest category, grows by 4.5 percent. Overall, the home care products segment grows by 7.5 per cent to EUR 5.7 billion.

Sales channels: focus on drugstores and digital trends

Consumers in Germany predominantly buy cosmetics in drugstores (52 percent market share), followed by specialist retailers (19 percent) and E-commerce (9 percent market share, 17.2 percent growth). Drugstores also dominate the market for home care products (35 percent), while discounters (27 percent) and supermarkets (16 percent) are also important. E-commerce shows the strongest growth in this sector as well, with an increase of 20.2 percent, despite accounting for only 5 percent of the market.

Cosmetics exports declining

At EUR 12.0 billion, export sales are 3.3 percent below the previous year's level. While beauty care products have significantly boosted exports in recent years with high, sometimes double-digit growth rates, the market is now calming down: Exports of cosmetics fall by 5.7 percent to EUR 9.0 billion. Home care products, on the other hand, are holding steady abroad, achieving a 4.9 percent increase to EUR 3.0 billion.

Growing burdens for companies

The economic challenges for IKW member companies have intensified. According to an internal survey, more than half of the companies feel heavily burdened by rising costs for energy and labour as well as inflation. Alongside cost pressure, additional reporting obligations, such as those arising from the Green Deal and supply chain regulations, complicate business operations. New levies and legal uncertainties exacerbate the situation. "The increasing burdens reduce the room for manoeuvre and slow down industry's commitment to invest. Our companies call for a reliable and coordinated industrial policy, faster decision-making processes and a reduction in regulatory red tape to remain competitive internationally”, says IKW Director General Thomas Keiser.

Mixed outlook

Economic institutes forecast weak economic performance in Germany and Europe in 2025, alongside global uncertainties. Consumers in Germany are likely to remain thrifty rather than spending. Nonetheless, IKW anticipates a stable growth trend for its industry. Thomas Keiser: "Our companies have always proven that they can detach themselves from an otherwise gloomy consumer climate with consumer-orientated products. We therefore expect sales revenues to grow by 2.3 percent in 2025."

The press release, you can find here, the market data sheet here and the graphic here.

Sources:

Domestic sales: IKW projection based on YouGov Consumer Panel (Jan. - Sept. 2024) and own surveys
Export sales: IKW projection based on the Federal Statistical Office (Jan. - Sept. 2024)

About IKW

The German Cosmetic, Toiletry, Perfumery and Detergent Association, located in Frankfurt am Main, was founded in 1968. It represents the interests of more than 440 companies from the fields of beauty and home care on national and European level. The industry generates sales revenues of more than EUR 22 billion and employs a workforce of approximately 50,000 people. The member companies cover approximately 95 % of the market.

IKW is the contact partner for its member companies, ministries, public authorities, consumers, institutions and associations as well as for the media as far as scientific, regulatory or business topics are concerned. Experts of the competence partners Beauty Care and Home Care within IKW provide competent answers on questions concerning skin and hair care, beauty and self-esteem as well as hygiene and cleaning. More information on www.ikw.org

Contact

Karen Kumposcht
Public Relations/Public Affairs Manager
Industrieverband Körperpflege- und Waschmittel e. V.
The German Cosmetic, Toiletry, Perfumery and Detergent Association
Mainzer Landstrasse 55, 60329 Frankfurt am Main, Germany
T +49.69.2556-1331 / F +49.69.237631
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