Prestigekosmetik looks back at a positive 2019 financial year
Approximately 60 leading German medium-sized and upmarket cosmetics companies represented by the VKE Cosmetics Association report an acceptable 2019 financial year. Sales grew by 2.1 per cent, which was more than expected. The total industry sales in the reporting period amounted to 2,133 billion euros.
Skin Care and Men's Cosmetics Most Successful
In the skin care cosmetics sector, especially in facial care and sun cosmetics, the represented companies recorded an overall increase in sales of 3.5 per cent. High-profile and innovative new product launches, including in the face mask segment, provided additional momentum. In the personal care sector, which experienced a considerable decline in 2018, sales were up 0.5 per cent. After years of declining sales, the colour cosmetics industry at least managed this year to avoid a decrease in sales. A number of successful market launches contributed to this outcome. The men's segment presented itself as a strong performer with a 5 per cent increase in sales. This increase was due to the expansion of product ranges. Women's fragrances continued to show an upward trend. Numerous new and classic product launches have resulted in a growth rate of 2.3 per cent.
Business Development in 2020: Optimistic Expectations for the Second Half of the Year
The Corona crisis forced the closure of the retail outlets, and thus affected the sales of selective cosmetics as well. Although there was a significant increase in online business, this was not enough to compensate for these losses.
The VKE members are cautiously optimistic about the coming months and hope for further recovery in the consumer confidence and the corresponding catch-up effects. Currently, 47 per cent of VKE members are again recording satisfactory sales, 10 per cent are even reporting strong or very strong sales.
"Right now, we can only venture to estimate the impact these factors will have. In light of the present difficult economic situation, the resulting restrained consumer spending and a thoroughly positive outlook for the second half of the year, I forecast a 20 per cent drop in sales for our industry in 2020," says VKE President Markus Grefer.
VKE Study: Sustainability as an Opportunity for the Beauty Industry
The issue of sustainability as a selling point has gained further traction in the cosmetics industry. Whilst still not a key reason behind purchases, product sustainability is nevertheless playing an increasingly important role in consumer behaviour. One in five consumers rates the beauty industry as sustainable. However, 74 per cent of consumers would like to see increased activity from the sector on this issue. These responses were collected as part of a study conducted by GIM Market Research for the VKE cosmetics association. Around 1,000 people were interviewed for the survey at the beginning of 2020.
Source: VKE, photo: Adobe Stock/ ronstik