Germany Skincare Product Market - Growth, Trends, and Forecasts (2023 - 2028)

The German skincare products market is projected to record a CAGR of 4.56% during the forecast period.

Key Highlights

• The German skincare products market currently stands first in terms of market revenue in the European market. German consumers are known to make informed product choices based on their skin type and preferences. Although price remains one of the important factors that shape buyer decisions, there has been a marked increase in the demand for premium products that offer higher quality. Among men, there has been a significant rise in the demand for products that provide anti-aging and moisturizing properties. Additionally, the rise of e-commerce has increased the sale of skin care products in the country. Therefore, several key players are launching their products on the e-commerce site.
• For instance, In September 2022, as part of a new partnership with Amazon, Dr. Barbara Sturm Molecular Cosmetics launched luxury stores on Amazon in Europe. The partnership enabled the German brand to deliver its products to United Kingdom, German, France, Italian, and Spanish consumers fast and for free.
• Moreover, there is a growing trend for a greener lifestyle in Germany, leading to an increase in demand for natural beauty products. Due to the benefits of natural ingredients in both beauty and skin care products in Germany, consumers have become more inclined to purchase products that contain those ingredients due to their efficacy. Hence, consumers are willing to spend a higher amount on higher quality products in these products, which is driving the growth of the German skincare market.

Germany Skincare Product Market Trends

Escalating Imports of Skincare Products in the Country

• Germany has a magnanimous demand for skincare products and has been dependent on imports from other countries to satiate its demand. Thus, the government has indulged in trade deals with major skincare-producing countries. In Germany. for skincare, most people focus on many popular brands such as L'Oreal and Unilever PLC.
• According to International Trade Center (ITC) Trade Map, Germany imported 4,392 metric tons of skincare products in 2021, with Italy being the major country having a significant value share of Germany's imports. The imported skincare products in 2020 accounted for USD 97 million, whereas in 2021, the value increased to USD 109 million. However, in 2021, due to the usage of chemical products that penetrate directly into the skin and cause harm, people started using organic products.

Demand for Organic Products

• Consumers are aware of the benefits of organic cosmetics and usually choose natural cosmetics over synthetic ones. The three segments, namely nature-inspired, organic, and natural cosmetics, account for significant sales in the beauty market in Germany. Younger consumers are increasingly pushing organic and natural cosmetics forward.
• Drug stores are the largest distribution channel for natural cosmetics, followed by departmental stores, perfumeries, and salons. Facial skincare products are expected to record the highest number of sales. Online retailers benefit due to the lack of flexibility in retail stationery stores. Men and women are expected to spend equal amounts on beauty products.
• Additionally, the players operating in the market are focusing on developing lines or products to cater to the demand to achieve significant market shares. For instance, in 2021, Beirsdorf personalized face care with the launch of its new brand O.W.N (Only What's Needed), which uses ingredients that are specially formulated for individual needs and scientific findings.

Germany Skincare Product Market Competitor Analysis

• The German skincare products market is highly fragmented, with some global and local players. Key players in the market include L'Oreal SA, Procter & Gamble, Beiersdorf AG, Unilever PLC, and Shiseido Company. The major strategy is product development, followed by the company's expansion. The companies compete on different factors, including product offerings, quality packaging, and marketing activities, to gain a competitive advantage in the market.
• Market players are exploiting the potential e-commerce channels for distribution to provide the convenience of shopping and reach more consumers across geographical boundaries. Companies are innovating their products and advertising advanced and niche categories, which can eliminate recurring problems faced by consumers due to pollution, aging, and lack of time.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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