Sales of beauty care products in Germany and abroad rose by 1.8 per cent to reach 8.3 billion euros in the first half of the year. This is according to a report by the German Cosmetic, Toiletry, Perfumery and Detergent Association (Industrieverband Körperpflege- und Waschmittel e.V., IKW). By contrast, the household care products business has suffered a decline of about two per cent to 3.1 billion euros. All in all, the sector has particularly benefitted from a strong exports business. Sales turnover in this area rose by 8.1 per cent to 4.5 billion euros, according to extrapolations by the IKW. The development has been driven primarily by increased demand for perfumes and skincare products.

Decline in German Business

Although the hygiene regulations last year led to an increase in sales of cosmetics and beauty care products, German consumers have been more reserved about buying personal hygiene products in the first half of 2021. Sales turnover amounted to 5 billion euros, a drop of 3.9 per cent compared to the previous year. Products with decreasing sales included haircare (minus 4.2 per cent) and shower gel (minus 3 per cent). On top of that, decorative cosmetics were not able to recover to pre-pandemic levels due to the restrictions on everyday life during the first half of the year.

Slump in Hygienic Cleaners

There were similar developments in the market for household cleaning products. The increased demand for these products for private use last year, due to consumers working from home and the closing of schools and nurseries, returned to a lower level in 2021. Hygienic and sanitary cleaners showed the highest decline (minus 21.6 per cent) as consumer demand decreased considerably.

For the rest of the financial year, Thomas Keiser, Managing Director of the IKW Association, expects business to gradually move towards a new normality which could in part also entail changes in consumer behaviour.

Source: IKW