Market Trends of Europe Beauty And Personal Care Products Industry
Popularity of Effective and Smart Skincare
The increasing focus on grooming habits and self-perceptions among emerging adults, especially Gen Z and millennials, represents the key factor driving the demand for beauty and personal care products in the region. The region has witnessed an increasing demand for natural and organic products due to consumer awareness about the harmful effects of certain compounds, such as parabens and aluminum, in cosmetics. Such factors have compelled manufacturers to improve their product offerings to meet changing consumer requirements. Companies focus on offering products containing vitamins, aloe, chamomile, and other ingredients with multi-functional properties. For instance, in November 2023, British heritage beauty brand Odylique expanded its makeup range by launching two unique organic-certified foundations specifically designed for sensitive skin.
Germany Holds the Largest Share
Germany is the largest market for beauty and personal care products in Europe, followed by France and the United Kingdom. Hair, skin, and face care products have the highest turnover. According to the Federal Statistical Office, the domestic and international revenue of the industry for the production of body care products and fragrances in Germany was EUR 3,580.1 (USD 4223 million) and EUR 2,560.08 million (USD 3020 million) in 2022. The market players are also focusing on developing innovative lines to cater to the growing demand and achieve significant market shares. Moreover, companies are reaching out to consumers through various distribution channels, such as online stores, supermarkets/hypermarkets, convenience stores, and others. Amazon is by far the most extensive online store in Germany. Online shopping is expanding beyond the desktop, as supermarket operators like Edeka and Rewe rolled out app development for younger and busier consumers. Furthermore, manufacturers are optimally leveraging online platforms by selling their products through their websites and listing them on popular e-retailing websites to improve their brand visibility and reachability.
