Projected annual sales 2019 of beauty and home care products in Germany total 18.9 billion euros, reflecting an increase by 1.5 percent over 2018.
Sales of beauty care products grew by 1.8 percent while sales of home care products improved by 0.7 percent. This means that these industry products were largely resistant to the adverse overall economic developments over the course of the year, with the German federal government anticipating 0.5 percent GDP growth in this country. As in previous years, cosmetics continued to make an important contribution to strengthening the domestic economy in 2019.
Good looks, personal care and expression of their individual style were worth 14 billion euros to consumers. This is an increase by 1.8 percent compared with 2018. Relying on figures from the market research institute IRI Information Resources and own market research, the IKW (German Cosmetic, Toiletry, Perfumery and Detergent Association) did the relevant projections and evaluations where the two best-selling product categories show the strongest growth, as in the previous year.
Consumers spent 3.3 billion Euros for skin and face care products. This is a plus of 3.3 percent against 2018. Sales of hair care products rose by 3.5 percent to 3.2 billion euros, while sales of oral and dental care products went up by 1.6 billion euros (+1.6 percent).
A slight increase was recorded in sales of decorative cosmetics (+0.3 percent to 1.8 billion euros). Another feel-good factor is a comfortable home that needs to be tended to. Total sales of all home care products combined climbed by 0.7 percent to 4.8 billion euros.
With sales of 1.3 billion euros heavy-duty laundry detergents were 1.8 percent above their 2018 level and the strongest individual product category. Sales of hard surface cleaners amounted to 1.1 billion Euros (+0.6 percent) and sales of 779 milion Euros (+0.9 percent) were achieved with dishwashing detergents.
Export figures too show that the industry’s growth trend is unbroken.
Increase in exports and outlook 2020
According to the German Federal Statistical Office (Destatis), 2019 saw exports of beauty and home care products to the total value of 10.1 billion euros (+7.7 percent) in end consumer prices. Out of this total, sales of beauty care products account for 7.8 billion euros (+9.1 percent). The share of home care products is 2.4 billion euros (+3.5 percent).
Irrespective of the somewhat less positive picture in the overall economy, the IKW member companies remain optimistic about the business trends to come. According to a membership survey on the business situation, 50 percent of companies see the future market development as “good” or “very good”. Consequently, there is currently a great willingness to set the course for the future by way of investments: 42 percent of respondents are planning or have already carried out major investment activities.
The companies also state that they want to strengthen their innovation ability, open up new distribution channels and work towards more profitable growth. IKW Managing Director Thomas Keiser: “Beauty and home care considerably contribute to economic stabilisation. We are confident that our development will continue on this path. For 2020, we are anticipating growth of 1.5 percent.”
About IKW
The German Cosmetic, Toiletry, Perfumery and Detergent Association, with headquarters in Frankfurt am Main, was founded in 1968. It represents the interests of more than 430 companies from the fields of beauty and home care on a national and European level. The industry generates sales revenues of more than EUR 18 billion and employs a workforce of approximately 500,000 people in the value chain. The member companies cover approximately 95% of the market.
IKW is the contact partner for its member companies, ministries, public authorities, consumers, institutions and associations as well as for the media as far as scientific, regulatory and business topics are concerned. Experts from the beauty care and home care departments within IKW provide competent answers to questions concerning skin and hair care, beauty and self-esteem as well as hygiene and cleaning.