The VKE Cosmetics Association sees new growth opportunities for the prestige beauty sector despite economic uncertainties. Innovation, emotional brand loyalty and new digital channels to reach consumers are key, the association explained at its general meeting, held under the theme ‘Shaping the Future of Beauty’. The prestige cosmetics market has so far proved resilient, whilst other consumer goods categories are under pressure. According to data from the market research firm Circana, turnover from January to August 2026 rose by 0.8 per cent year-on-year to 2.448 billion euros. Hair and skincare, as well as make-up, performed particularly well, whilst the fragrance segment declined slightly.

Added value rather than low prices

The association sees a significant opportunity in the continued willingness to pay for premium products. Whilst the Circana survey indicates that good value for money is the most important reason for purchasing fragrances, skincare and make-up, a low price alone is not the decisive factor. A credible combination of quality, effectiveness, innovation, service and product experience can justify a higher price. VKE members therefore expect the market to continue moving towards selective premiumisation. However, brands must communicate their unique benefits more clearly and bring them to life. “Prestige does not arise from price alone,” said VKE President Markus Grefer. “Those who create genuine added value and communicate it convincingly will find opportunities for growth even in a challenging environment.”

Growth through AI and authentic content

Companies see particularly great potential in new digital sales and communication channels. 92 per cent of VKE members expect online sales to rise this year. The key growth drivers include social commerce, AI and new sales channels. Social media, influencers, community platforms and AI applications are becoming increasingly important, particularly for Generation Z and younger millennials. AI can also be used for product recommendations, personalised advice and new search and inspiration features. However, relevant content, consistent brand management and clearly recognisable added value remain essential. At the same time, as the market becomes increasingly fragmented, the importance of originality and differentiation is growing. The VKE brand, too, should become even more widely recognised in the run-up to its 75th anniversary in 2027, said Andreas Fuhlisch, Managing Director of the VKE Cosmetics Association.