Domestic sales are booming, exports are sluggish: Sales of cosmetics and household products continue to show contrasting trends. According to the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW), its member companies sold products worth €17.8 billion to German and international trading partners in the first half of the year – an increase of 3.6 percent. However, while the domestic market grew by 6.9 percent to €11.9 billion, foreign business continued to decline, falling by three percent. Sales amounted to only €5.9 billion. In the first quarter, however, the decline was even greater at five percent.

Personal care on the rise

Decorative cosmetics such as makeup, skin creams, facial care products, shampoos, and other hair care products were particularly popular: consumers in Germany spent €9.1 billion on these items, representing an increase of 6 percent. Products for washing, cleaning, and sanitizing contributed a further €2.8 billion and an increase of 4.6 percent to domestic sales. Among the products sold abroad, bath and shower additives clearly bucked the negative trend. IKW Managing Director Thomas Keiser explained that exports were suffering from the geopolitical situation. For many of our companies, this is an existential challenge.

Bureaucracy slows down innovation

According to a study conducted by management consultants Roland Berger on behalf of the IKW, 90 percent of companies consider the bureaucratic burden imposed by national and European regulations to be a significant burden. Forty percent of those surveyed expect additional costs in the six-figure range. Regulatory requirements have also led to products being taken off the market or innovations failing. Three-quarters of those surveyed now consider Germany to be an unattractive business location. Nevertheless, only a few companies are considering relocating production abroad. The majority remain committed to Germany out of conviction and a sense of responsibility.