German manufacturers of cosmetics and household care products have reported slight growth of 1.7 percent for the first quarter compared to the same period last year. The industry achieved sales of 7.5 billion euros despite the weak international consumer climate, according to the German Cosmetics, Toiletries and Detergents Association (IKW). The analysis is based on sales prices in German and international retail. Domestic business in particular developed positively, recording growth of more than six percent with sales of 4.5 billion euros. In contrast, exports shrank to three billion euros - a decline of around five percent. A trend reversal in foreign trade had already emerged in 2024 with a decline of more than three percent.

Global conflicts impact exports

"Our companies are clearly feeling the effects of disrupted international trade relations," said IKW Managing Director Thomas Keiser. Military conflicts and concerns about the escalation of further conflicts are causing uncertainty among business partners and consumers. In addition, manufacturers in Germany are at a global disadvantage due to high energy, raw material and labor costs as well as an enormous amount of bureaucracy. Some companies have already focused more on selling their products domestically, Keiser emphasized. Companies were also concerned about the EU's negotiations with the USA regarding future trade relations. Soaps and cosmetics are among the most important consumer goods exported to the USA. Last year, domestic manufacturers sold cosmetic products worth 286 million euros to American customers.

No tariffs on toothpastes

Tariffs on exports to the USA and countermeasures by the EU would cause enormous costs and massively disrupt trade relations. Consumers would be the ones to suffer first and foremost. "Cosmetic products are indispensable in the everyday lives of people on both sides of the Atlantic - not only for hygiene and health, but also for well-being and self-esteem," emphasised Keiser. However, the industry's innovative strength would also be weakened and value creation and jobs would be threatened. "Our business with US partners is characterised by cooperation and fairness," emphasised Keiser. "This is also the basis on which we hope to further develop our relationships."