The economy is weakening, but the cosmetics and cleaning products business in Germany is growing. However, there are setbacks in exports.
The German cosmetics industry has been able to increase its sales despite the weakening consumer sentiment in the country. In the first half of the year, revenue from cosmetics and personal care products rose by 2.0 percent to 12.3 billion euros, according to the German Personal Care and Detergent Industry Association (IKW) in Frankfurt. At the same time, sales of detergents and cleaning products increased by 8.3 percent compared to the same period last year to 4.1 billion euros.
The industry was helped by strong business in Germany. Sales in this country grew by 7.3 percent to 10.4 billion euros. In the cosmetics sector, oral hygiene and facial care products were in demand, and fabric softeners, laundry detergents and universal cleaners also saw growth. “Our industry is once again showing strength in a rather weak economic environment,” said IKW Managing Director Thomas Keiser. Beauty and cleanliness are a priority for consumers.
The industry’s foreign business, however, cooled off and, with sales of 6.0 billion euros in the first half of the year, was 2.6 percent below the previous year. After several years of double-digit growth rates in exports, there is a phase of market adjustment, it was said.
The IKW represents a good 440 companies with around 50,000 jobs. According to the association, the member companies account for more than 95 percent of the German market.
Source: Stern
