Market Snapshot
| Study Period: | 2016 -2027 |
| Base Year: | 2021 |
| CAGR: | 4.56 % |
|
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Market Overview
The German skincare products market is projected to record a CAGR of 4.56% during the forecast period (2022-2027).
The outbreak of COVID-19 impacted the overall sales of skincare products in Germany. The pandemic influenced consumers spending habits and purchasing decisions which led to a slight decline in the market growth. Furthermore, the on-premise sales through supermarkets and convenience stores witnessed a decline due to the subsequent lockdowns and closure of retail stores, as individuals have been practicing social distancing measures and avoiding gatherings and outings. However, online e-commerce platforms performed well across skincare categories in 2020.
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. Men and women alike continue to seek product formulations that meet their needs in terms of product quality and associated side effects.
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.
Scope of the Report
Skincare is the range of practices that support skin integrity, enhance its appearance, and relieve skin conditions. These are applied to the skin in order to avoid symptoms of early aging, pimples, and black patches. Skincare products include cleansers, eye creams, moisturizers, sunscreens, and toners. The German skincare products market is segmented by type into facial care, body care, and other types. Based on distribution channel, the market is segmented into supermarkets/hypermarkets, conveniences stores, specialist stores, and other distribution channels. The report offers market size and forecasts in value (USD million) for all the above segments.
| Type | |
| Facial Care | |
| Body Care | |
| Other Types |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Conveniences Stores | |
| Specialist Stores | |
| Other Distribution Channels |
Key Market Trends
Escalating Imports of Skincare Products in the Country
Germany has a magnanimous demand for skincare products, and it has been dependent on imports from other countries to satiate its demand. Thus, the country has been indulging in several trade deals with major skincare-producing countries over the years. In Germany. for skincare, the majority of people focus on many popular brands such as L'Oreal and Unilever PLC. According to ITC Trade Map, Germany imported 4,392 metric ton of skincare products in 2021, with Italy being the major country having a major value share of Germany's imports. The imported value of 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.
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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 cosmetics, organic cosmetics, and natural cosmetics, account for almost 15% of the total sales of 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 and account for approximately 40% of the market share, 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. Online spending is expected to increase by 8% in the next two years. Men and women are expected to spend equal amounts of money on beauty products. Additionally, the players operating in the market are focusing on developing lines or products to cater to the demand to achieve major 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.
Competitive Landscape
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 the following is product development, followed by the expansion of the company. The companies are competing on different factors, including product offerings, quality packaging, and marketing activities, to gain a competitive advantage in the market. The potential e-commerce channels for distribution are being exploited by market players 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.
Major Players
L'Oreal S.A.
Procter & Gamble
Beiersdorf AG
Unilever
Shiseido Company
Recent Developments
In January 2022, L'Oreal and Verily announced a strategic partnership exclusive in beauty to advance skin health. The first of its kind partnership in the beauty industry is expected to entail two programs aimed to better understand and characterize skin and hair aging mechanisms.
In July 2021, MONO skincare developed a range of eco-friendly microbiome-friendly skincare tablets that are activated by dissolving them at room temperature. The brand is currently in its pre-launch stage and offers seven products, including a facial serum and moisturizer, as well as a deodorant. The product also utilizes allantoin for its soothing, moisturizing, and healing properties as well as inutec H25P, a highly purified inulin that forms on the skin to provide a softening effect.
In February 2021, Beirsdorf AG personalized face care with the launch of a new brand O.W.N.(Only What's Needed). The new brand was launched in key European markets. O.W.N uses artificial intelligence and is built around a proprietary algorithm that brings together Beirsdorf's 140 years of skincare expertise and consumer knowledge.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Facial Care
5.1.2 Body Care
5.1.3 Other Types
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Conveniences Stores
5.2.3 Specialist Stores
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Unilever PLC
6.3.2 Shiseido Company
6.3.3 L'Oreal SA
6.3.4 Procter & Gamble
6.3.5 Beirsdorf AG
6.3.6 ESTEE LAUDER COMPANIES INC
6.3.7 Skinceuticals Inc.
6.3.8 Riverderm AG
6.3.9 Natura & Co.
6.3.10 Mussa Canaria
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Germany Skincare Product Market market is studied from 2016 - 2027.
What is the growth rate of Germany Skincare Product Market?
The Germany Skincare Product Market is growing at a CAGR of 4.56% over the next 5 years.
Who are the key players in Germany Skincare Product Market?
L'Oreal S.A., Procter & Gamble, Beiersdorf AG, Unilever, Shiseido Company are the major companies operating in Germany Skincare Product Market.
