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24/06/2025 CosmeticBusiness

Beautiful and systemically relevant

According to a study, the cosmetics industry holds society together

A study conducted by management consultants Roland Berger on behalf of the German Personal Care and Detergent Industry Association (IKW) has attested to the high social relevance of the beauty and household care sector: The industry is not just a consumer sector, but combines economic strength with social benefits. It acts as a stable factor in challenging times and ensures social well-being. With domestic and export sales of 34.6 billion euros and 16.2 billion euros in added value, the beauty and home care industry is an important economic pillar in Germany. It includes more than 1,000 small and medium-sized companies and around 60 large companies. The companies and their suppliers secure 533,000 jobs, even in difficult economic times.

Care products stabilise in times of crisis

The study also states that personal care and cleaning products provide emotional stability, especially in times of crisis. The industry thus contributes to social resilience. The combination of individual stability and collective resilience ensures a resilient society. "Our industry stands for quality of life, innovation and economic substance - values that Germany urgently needs, especially in difficult times," says IKW Managing Director Thomas Keiser. With an innovation rate of 25 per cent, the industry is also one of the most innovative and dynamic consumer goods markets in Europe. The focus is on functionality, sustainability and social relevance – from low-water formulations and vegan formulas to recyclable packaging solutions.

Industry criticises overregulation

However, 90 per cent of companies would consider national and European regulations to be a heavy burden. 40 per cent expect additional costs as a result. Almost three quarters of companies already consider Germany to be an unattractive business location. Politicians must take countermeasures here. "If you want resilience, you have to promote economic strength and not jeopardise it through overregulation," says Keiser. The study "Clean. Beautiful. Systemically relevant - the underestimated contribution of beauty and home care to Germany" is based on industry data, specialist studies and a survey of IKW member companies conducted in April 2025.

Source: IKW

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