The cosmetics or beauty products industry in the world is one sector which remains impervious to the ups and downs markets. Overall sales are indeed affected in the event of an economic downturn, but one can count on sales of cosmetics to maintain a certain volume overall. This is because of continuing and growing usage of products by women, and increasingly, by men, across the world.
It is estimated that the Germany cosmetics market is worth USD 18.95 billion in 2015, and will grow at a CAGR of 5.57% over the forecast period, to USD 24.85 billion by 2020. The market experienced stronger value growth in 2015. The market exhibits relatively high purchasing power, a high penetration of almost all global brands, a lack of new markets, and a strong regulatory framework. While the market suffered and registered a decrease in revenues and sales during the Eurozone crisis, sales have regained value. They are driven by an increased preference for vegan, organic and natural beauty products to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products, increased awareness about sustainability and socially responsible cosmetics available. An up and coming market in this region is that of ethnic cosmetic products matching skin tones of African and Asian and South Asian skin tones.
The most popular trend is the blending of multiple benefits under one beautifying product. The result of this trend, originating in South Korea, is the BB (followed by CC, DD and EE) creams, which have the colour correction properties of foundation, SPF benefits of sunscreen and a multitude of other medical and natural benefits.
Cosmetics can be subdivided by the areas of application. Cosmetics used on the face (and other parts of the body like foundation, glitter, etc.) include products like primer, foundation, concealer, face powder, bronzer/blusher, face contour creams, highlighter, and setting spray to help makeup stay put longer. Cosmetics used on the lips include lipsticks in matte or non-matte and other varieties, lipstains, coloured lip balms, and lip glosses. Furthermore, the eye-area makeup items include kohl, eye liners, eye brow pencils (and recently, fake eye brows), fake eye lashes, mascara, and more. Another extension of cosmetics are nail colours. Aside from these products, there are ancillary industries for cosmetics supportive products like make up brushes, beauty blenders, etc.
The predominant trends for cosmetics include lasting power and new colour palettes, increasing market share for ethnic products, and an increased preference for vegan, organic and natural beauty products to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products.
High disposable income are the reason for a high penetration of luxury brands like Dior, Guerlain, Clarins, Clinique, Lancome, Estee Lauder, Shiseido, etc. Distribution is pervasive through exclusive stores of luxury products in malls or standalone, while ecommerce is emerging as a competitor to direct sales for all mass and premium brands. Direct sales for Avon continue to hold and grow market value. Customers are increasingly looking for value for money products which are natural and beneficial for the skin, provide benefits of high priced premium products, at a lower than premium cost. This product class has been dubbed “masstige”.
Some important players in the mass/masstige makeup/cosmetics field include P&G, Beiersdorf, Unilever, MAC, Revlon, Olay, Avon, L’Oreal, Boots No 7, Maybelline, Rimmel, Bourjois, Boots 17, and others.
High disposable incomes, an inclination to spend on appearance, a large section of the world’s teens growing older, younger, a union of for skin-benefiting and beautifying aspects in new makeup products through research into use of natural products, continuing breakthrough research on products, are some of the drivers of this market.
Tight purse strings, lack of unpenetrated and potential markets, insufficient research into the prevalent trend of organic products, inadequate regulatory, and a few other factors make up the challenges in this market.
What the report offers
- Market Definition for the specified topic along with identification of key drivers and restraints for the market
- Market analysis for the Germany Cosmetics Market, with region specific assessments and competition analysis on a Germany and regional scale
- Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a Germany and regional scale
- Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares
- Identification and analysis of the Macro and Micro factors that affect the Germany Cosmetics Market on both Germany and regional scale
- A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
1.1 Study Deliverables
1.2 Study Assumptions
2. Research Methodology
3. Executive Summary
4. Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat from new entrants
4.3.4 Threat from substitute Products
4.3.5 Competitive rivalry within the industry
4.4 Industry Policies
5. Market Dynamics
5.1.1 Innovation in Packaging and Design
5.1.2 Aging population
5.1.3 Growth of E-Commerce
5.1.4 Increasing access to Middle-bottom segment of pyramid consumers
5.2.1 New medical technologies for beauty enhancements
5.2.2 Volatile Raw Material Prices
5.3.1 Growing Demand for Organic Products
6. Germany Cosmetics Market Segmentation
6.1 By Product Types
6.1.1 Hair care products
6.1.2 Skin care products
6.1.3 Oral care products
6.1.4 Make up & Color Cosmetics products
6.1.5 Fragrances & Deodorants
6.1.6 Soaps and shower gels
6.1.7 Sun care products
6.2 by Distribution Channel
6.2.1 Direct selling
6.2.2 Hypermarkets/ Retail Chains
6.2.4 Specialty stores
7. Vendor Market Share Analysis
8. COMPANY PROFILES
8.1 L'Oreal Group
8.2 Procter & Gamble
8.3 Beiersdorf AG
8.4 Avon Products, Inc.
8.6 The Estée Lauder Companies Inc.
8.8 Kao Corp.
8.9 Revlon Inc.
8.10 Mary Kay
8.11 Yves Rocher
8.12 Oriflame Cosmetics S.A
9. Investment Analysis
9.1 Recent Mergers & Acqisitions
9.2 Strategic Alliances
9.3 Investment Scenario
10. Future Of Germany Cosmetic Products Market