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Beauty and Personal Care in Germany

Germany beauty products market: Constant growth witnessed between 2007-2012

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2014-01-31 17:16:01 - Beauty and Personal Care in Germany - a new market research report on

In 2012 the beauty and personal care market registered another good performance, despite the fact that most consumers remained tired of the economic situation. Growth was mainly driven by categories such as men´s grooming and colour cosmetics. Within colour cosmetics, ground-breaking product innovations in facial make-up and in nail products, contributed to growth.

Parapharmacies/drugstores is the dominant distribution channel in beauty and personal care in Germany. This channel saw its value sales increase in 2012, as the chains DM and Rossmann expanded rapidly. Both drugstores added more food to their stores, which increased the frequency of visits. German consumers like to purchase beauty products in parapharmacies/drugstores because of their convenient locations and wide selection of mass-market beauty brands. Beauty specialist retailers,



the second channel for sales of beauty and personal care products, could also increase its value sales in 2012, due to the strong performance of premium products.

Following the general consumer demand for organic and natural beauty and personal care products, major brand manufacturers and retailers engaged in "greenwashing" their new products. For example, Beiersdorf offered a natural-inspired product range under its core brand Nivea. In addition, the retailer DM introduced, separate to its certified organic product offerings, a "greenwashed" skin care line, Balea Nature. Within certified organic beauty and personal care products, the key players saw the healthy growth of natural-inspired products as a positive market development, as it presents these players with the opportunity to tap into new target segments, even though demand is slightly slowing.

After a successful performance over the review period, men´s grooming saw slightly less growth in 2012. The category appeared to have nearly reached its full potential, with key brands and retailers taking advantage of untapped consumer segments and stimulating consumer demand. Major manufacturers and retailers launched new products, with the positioning of "sensitive skin" or "´hydro gel formula" in beauty and personal care categories such as men´s deodorants and skin care.

Beauty and personal care saw constant value growth over the 2007-2012 review period. However, the growth rate is predicted to slow down over the forecast period, and beauty and personal care is expected to record a stagnant constant value CAGR. Colour cosmetics, oral care and men´s grooming are expected to outperform other beauty and personal categories, such as bath and shower, sun care and deodorants, which have strong price competition and operate in a highly mature market.

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