Continuing growth of the natural and organic cosmetics market in Germany

natural and organic cosmetics as the driver of growth for the German cosmetics market

At the end of 2015, the role of natural and organic cosmetics as the driver of growth for the German cosmetics market was confirmed. According to the German industry association for personal hygiene products and detergents IKW, the turnover of cosmetics and toiletries in the German retail trade in 2015 came to about €13.4bn, an increase of 2.4 % compared with the period January to September in 2014. Natural and organic cosmetics grew, according to the market research organisation IRi MarketResearch, by around €15.2m (9.2 %).The conventional cosmetics sector grew by a good €62m (3.6 %), whereas the turnover of nature-based cosmetics fell by almost €1.9m compared with the same period the before.

With this rise in turnover, organic and natural cosmetics made an above-average contribution to the positive development of the overall market and again proved to be the engine of growth in this market segment. Rainer Anskinewitsch, from IRi Information Resources GmbH in Düsseldorf, attributes this positive development of the natural cosmetics market to the “wide-ranging activities of manufacturers, the rising number of new products and innovative concepts, an increase in marketing measures and improved availability in the retail trade.”

Chart IKW©: Expenses for cosmetics and detergents in Europe.

According to IRi Market Research, the market share of controlled natural and organic cosmetics rose to approximately 9 % in 2015. Total turnover of natural and organic cosmetics amounts to over €1bn and the products with the biggest share in this figure continue to be face care with 38.6 % - an increase of 6.8 % - and toiletries with 24.4 % - growth of 7.5 %. Face masks registered the highest growth rates (+22 %), shower products (+14.8 %) and facial cleansing products (+14.5 %). The face care category  alone generated growth in turnover of around €4.4m. In the case of toiletries there was an increase of a good €3m and the corresponding figure for shower products was over €3.7m.

Chart IRi©: Face care, toiletries and shower products contributed approximately11million euros to the growth of the natural cosmetics market.

Responsible consumers – interesting target group for natural and organic cosmetics

Dr. Robert Kecskes (picture) from GfK market research took a closer look at consumers and their preferences. The so-called responsible consumers are particularly interesting as a target group for natural and organic cosmetics. Kecskes said that they constitute almost a third of younger households in Germany and account for 51 % of expenditure on natural and organic cosmetics (GfK ConsumerScan).

Chart GfK©: Responsible consumers are a group who spend above average on natural and organic cosmetics.

Kecskes identified a still growing target group for natural and organic cosmetics, namely the representatives of the Lifestyle of Health and Sustainability (LOHAS), with the LOHAS core group continuing to grow at a fast rate (2014: 14.7 %, a plus of 5.8 %), and also the LOHAS marginal group that registered 12.5 % in 2014. These consumers regard issues like the environment, climate, their home region, social justice and working conditions as important,  and they bear these in mind when they go shopping.

Picture: Dr. Robert Kecskes, GfK. Photo Karin Heinze

Big demand for natural cosmetics in the generation Y

According to the GfK data, regarding the consumption of natural and organic cosmetics in Germany, we see that the biggest extension of reach applied to the generation Y (people up to the age of 34): from 2009 to 2015 customer reach doubled from 3 % to almost 6 %.   

Important consumption trends identified by Kecskes are the continuation of the trend to consuming with more awareness
and sustainability, regionality, fairness, organic, vegan and health as drivers of growth. He pointed to something that is becoming important: accelerated meaningfulness, that links convenience with high quality and responsibility for the environment. The GfK expert explained that contributing to the success of an integrative brand in the future are “listening and engaging in dialogue” and “trust through coherence” (we keep to our promise).

Chart GfK©: Big demand for natural cosmetics in the generation Y