Market Data

• Sales revenues increase by 2.9 percent to EUR 35.6 billion in 2025
• High everyday relevance drives domestic sales to EUR 23.9 billion (up 5.5 percent)
• E-commerce sees strongest sales growth in both industry segments

Frankfurt am Main, 3 December 2025: The beauty and home care industry is recording stable growth in 2025 despite the weak overall economy. According to IKW projections, industry sales increase by 2.9 percent to EUR 35.6 billion. Since 2020, the industry has been growing at an average annual rate of 4.4 percent, proving itself to be crisis-proof.

Domestic sales continue to grow

Domestic sales rise by 5.5 percent to EUR 23.9 billion in 2025. Products such as skin and hair care, toothpaste, cleaning and laundry detergents are firmly anchored in people's everyday lives. "Our studies show that beauty and home care products provide stability and support well-being – especially in challenging times," says Gabriele Hässig, IKW President.

Product groups with externally visible impact are trending

Products that shape external appearance are growing the strongest. The frontrunner is skin and face care, which is growing by 11.1 percent, followed by hair care products, with an increase of 8.1 percent. In home care, special detergents, for example for wool and sports textiles, are achieving the highest growth with an increase of 14.8 percent, followed by fabric conditioners with an increase of 5.8 percent.

Where are the products purchased?

Cosmetics are most frequently purchased in drugstores (53 percent market share), followed by specialised trade (18 percent market share). The largest growth is recorded in e-commerce, which is increasing by 22.5 percent and now accounts for 7 percent of the total market. Home care products are primarily sold through drugstores (36 percent market share), followed by discounters (27 percent market share). Here, too, online retail is showing the strongest growth: up 12.7 percent and now accounting for 5 percent of the market.

Exports under pressure

While the domestic market is growing, export sales are declining: foreign business is down 2.1 percent to EUR 11.8 billion. Cosmetics are down 1.9 percent and home care products 2.7 percent. In addition to high energy and labour costs, which are restricting the scope for manoeuvre in Germany, the geopolitical situation is also having an increasingly negative impact on international sales markets.

This is also confirmed by the Roland Berger study commissioned by IKW. Additionally, it shows that 90 percent of the companies surveyed see bureaucracy as a major burden. 75 percent consider Germany to be an unattractive business location. "High location costs and overregulation tie up resources and prevent investment – and that in an industry that stands for innovation," emphasises IKW Director General Thomas Keiser. "The German government must push at EU level to correct disproportionate burdens such as those imposed by the Urban Wastewater Treatment Directive, to ensure the use of ethanol as a safe and proven ingredient, and to consistently support the planned simplifications of the Cosmetics Regulation."

Outlook

The beauty and home care industry continues to prove resilient in 2025, despite the weak economy in Germany, high location costs and challenges in foreign trade. Over 1,000 small and medium-sized enterprises and around 60 large companies secure around 178,000 jobs in Germany and drive innovation. IKW is expecting moderate growth of 1.5 percent for 2026.

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. 2025) and own surveys. Export sales: IKW projection based on Federal Statistical Office (Jan. – Aug. 2025)
Study Clean. Beautiful. Integral to the system – The considerable contribution of the beauty and home care industry to Germany’s economy and society, May 2025.

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 470 companies from the fields of beauty and home care on national and European level. The industry generates sales revenues of more than EUR 35.6 billion euros and employs around 178,000 people in production and sales. The member companies cover approximately 95 % of the market.

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
Head of Department Communication and IT
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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