This report provides an insight into the German market for color cosmetics. Product segments covered are: facial make-up with foundation, rouge, face powder, blusher, highlighter and face bronzer; eye make-up with mascara, eyeliner, eye shadow, eye and eyebrow pencil; lip products with lipstick, lip pencil, lip gloss, transparent base and tinted lip moisturizer, multi-purpose color stick to be used for cheeks and eyes; and nail products, with nail polish, nail polish remover, treatments, home manicure products, such as cuticle softeners and nail strengtheners.
In 2009, the color cosmetic market increased to sales of EUR 1.44 billion, a plus of 7.8% compared with 2008. Unit sales grew by 10% when compared with 2007, attesting to the fact that price pressure in this market is still high. Industry experts expect the color cosmetic market to grow further in turnover and volume over the next years. U.S. manufacturers selling innovative, high quality, cost-competitive products should find adequate sales opportunities in this market.
The largest product group in the color cosmetics market was eye make-up, accounting for 37% (EUR 409.6 million) of total sales in 2008, an increase of 8.7% compared with 2007. All sub-segments, such as mascara, eye shadow and eyeliner, greatly improved their overall sales performance with eyeliners being in demand the most. Mascara has overtaken lipstick as the product most frequently bought by consumers and is expected to further increase its sales in the future.
Facial make-up constitutes 34% (EUR 379.7 million) of the color cosmetics market, improving sales by 6.8%. Blush (7.7%) and foundations (4.3%) increased their sales moderately, while powder (10.4%) and concealer sticks (13.1%) recorded the highest growth. Increases in these product groups are attributable to their convenience; they fit easily into handbags and can be used ‘on the go’ and thus meet the younger consumers’ demand.
With a share of 19% (EUR 203.5 million), the lip care segment was the third-important segment in the color
cosmetics market in 2009. While the overall segment for lip care products increased by 3.9% compared with
2008, performance in the sub-segments varied: sale of lip colors declined by 5.8%, whereas lip gloss
products offset these losses with a growth of 7.2% during the same time period.
The nail products segment accounted for 9% (EUR 100.8 million) of the total color cosmetics market in 2009. Sales in this segment increased by 9.7% compared with 2009 with a growth of 10% evident in the nail polish sub-segment.
Reasons for the positive market development in color cosmetics are varied. Studies verify that more than 90 percent of all women between the age of 14 and 70+ state to be interested in new color cosmetics products. Industry market leaders have increasingly targeted young and teenage girls with tailor-made, inexpensive products over the last years, raising the percentage of young females who indulge in color cosmetics at an ever younger age. At the same time, Germany’s specific demographic development with its growing share of best agers and seniors creates an often affluent female clientele who spends considerable amounts on cosmetics and beauty products.
While glamorous ‘must-haves’ and high-end brand cosmetics remain in demand, one of the trends in the German market is an increase in natural and mineral cosmetics products. Currently, about 5% of all cosmetics sales in Germany are generated by natural cosmetics, thus making it the largest natural cosmetics market in Europe. Industry experts estimate a growth to a 10% market share over the next years. Both major brand manufacturers as well as large retail chains have recognized this trend and are offering their own natural cosmetic brands. However, there are no standards or official regulations governing which cosmetics can be certified as ‘natural’.