Beauty Is Important to Germans
Significant Growth in the Personal Care and Detergents Market
The German personal care and detergents market is at a high point. According to data from the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW), consumers spent more on these products in 2023 than ever before. Association members are projecting turnover growth of 8.4 per cent for a total of 33.4 billion euros. Domestic and export sales are projected to have grown by 8.6 and 8.1 per cent to 21.1 billion euros and 12.3 billion euros, respectively.
Double-Digit Growth for Cosmetics
The personal care and cosmetics segment even experienced double-digit growth rates, with domestic turnover increasing by 10.6 per cent to reach 15.8 billion euros. The highest growth rates were noted for deodorants at 21.2 per cent, followed by colour cosmetics at 17.7 per cent and fragrances at 15.0 per cent. According to IKW, drugstore markets represented the most popular point of sale, accounting for 51 per cent of sales in beauty products; speciality retail came in second place at 20 per cent. Online retail accounted for 23.8 per cent of sales of beauty products, despite being relatively insignificant overall with only a 7 per cent share of the market as a whole.
Cautious Optimism in the Face of Uncertainties
Nevertheless, persistently high costs and the planning uncertainties brought on by the global political situation continue to be sources of concern. In a recent survey of IKW member companies, 62 per cent of respondents indicated that increases in the cost of energy and raw materials had put them under significant or extreme strain. Labour shortages and growing bureaucracy were likewise heightening pressure on the industry, as were increasing regulatory demands. Given these constraints, the Association is looking ahead to 2024 with uncertainty. However, the IKW remains cautiously optimistic, anticipating 2.5 per cent growth in turnover.