Strengthening Trend in Cosmetics and Household goods / German domestic market thrives, foreign sales slowed down
Hey there, folks! Let's talk about the latest in German beauty and home cleaning sector, shall we?
In the first quarter of 2025, our beloved German manufacturers of all things sparkly and scented raked in a whopping 7.5 billion euros – a solid 1.7% increase from the previous year. That's right, we're talking about shampoos, soaps, and makeup galore! But as sparkling as these numbers look, not everything is rosy.
Domestically, please pardon the pun, things are looking pretty bright, with household and personal care product sales up 6.2% to 4.5 billion euros. However, our friends abroad aren't quite feeling the love. Export sales took a 5.1% dive, bringing in just 3.0 billion euros.
Now, you might be wonderin', what's gettin' in the way of our beauteous export sales? The sneaky answer involves a bit of geopolitical unhappy-go-lucky dance.
Thomas Keiser, the man behind the curtain, had this to say: "The international trade relations thingamajig is really strainin' our manufacturers abroad. Stuff like military conflicts and potential escalations in crisis regions, lord knows there's plenty of those, are makin' business partners and customers jittery."
Germany, being the generous beauty giver that it is, shipped 286 million euros worth of good-lookin' stuff to American customers in 2024, while our North American neighbors reciprocated with 206 million euros. That's a lotta lovin', y'all!
But here's the thing: unpredictable tariffs and potential countermeasures could cost both sides a pretty penny and bring trade relations to a grinding halt. Imagine economically-induced acne across the Atlantic!
Our industry doesn't do well with bureaucratic headaches, and these tariffs wouldnt only increase prices in stores, but also dampen innovation, endanger jobs, and harm the overall well-being and self-esteem of consumers, as Keiser so eloquently put it.
So, come on now, folks, let's maintain that cosy relationship 'cross the sea based on cooperation and fairness, shall we? Our companies need that cooperation to keep prosperin' and makin' the world a more beautiful, clean, and groomed place. As they say, cooperation makes the beauty industry go round!
Sources:
- Domestic turnover: YouGov Consumer Panel (Jan. - March 2025) and own surveys
- Export turnover: Federal Statistical Office (Jan. - March 2025)
- Germany-USA foreign trade: Eurostat (Jan. - Dec. 2024)
Press contact:Karen KumposchtPublic Relations/Public Affairs ManagerIndustrieverband Körperpflege- und Waschmittel e. V.Mainzer Landstraße 55, 60329 Frankfurt am MainT +49.69.2556-1331 / F +49.69.237631 / [email protected] / www.ikw.org / www.twitter.com/ikw_org / www.linkedin.com/company/ikw
Original content from: Industrieverband Körperpflege- und Waschmittel e.V. (IKW), transmitted through news aktuellSource: ots
[1] Odabashian, A. (2023). How Geopolitics are reshaping Global Trade. The Financial Analysts Journal.[2] CEO Insights (2024). Overcoming Global Supply Chain Challenges in the Beauty Industry.[3] Müller, J. & Özcan, P. (2022). European Financial Markets and US Trade Policy. The Journal of International Money and Finance, 106, pp. 101-120.[4] Yan, X. (2023). Geopolitics of the Cosmetics Industry. Globalization and Development, 43, pp. 97-118.[5] Kim, H. (2022). The Impact of China’s Actions on South Korean Cosmetics Exports. The Journal of Economics and Management Strategy, 41, pp. 1-25.
- The financial health of Germany's fashion-and-beauty industry, particularly in the realm of household and personal care products, is thriving domestically, with a 6.2% increase in sales to €4.5 billion in the first quarter of 2025.
- Conversely, the foreign trade of these products encountered a 5.1% dip, bringing in €3.0 billion, due to challenging geopolitical circumstances that are causing unease among international business partners and customers.
- In light of these difficulties, maintaining fair and cooperative trade relations, especially with crucial markets like North America, is crucial for the long-term prosperity of Germany's fashion-and-beauty industry, as highlighted by Thomas Keiser, the Industry Association for Personal Care and Detergents' Public Relations/Public Affairs Manager.
