Germany's cosmetics market recovers

Private label and added-value products promoting wellness and
beauty are expected to see future growth in Germany in 2005,
reports Euromonitor. More confident consumer spending is expected
as Germany shows signs of recovery after a mini-recession
experienced in the country last year.

Less money was spent on luxury items such as fragrances, bath and shower products in Germany in 2003 as a result of the countries economic downturn. Consumers increasingly opted for private label products reducing the average unit prices for cosmetics and toiletries.

However both specialist and private label brands are to experience significant growth by 2005, predicts Euromonitor. Private label products in particular are likely to gain further market share as both their quality and lower prices continue to appeal.

Germany's ageing population in particular has opened up a new specialist market for anti-ageing products. Creams specifically formulated to fight wrinkles and other signs of age, such as sagging skin, have sprouted over the last two years, spreading from the premium to the mass market.

With baby boomers keen to reduce the signs of ageing, ingredients such as Q10 or extract of caviar - that promise miracle cures - have particular appeal to those aged between 40 and 50 who on average have more disposable income.

Convenience and ease of application were other concepts that further influenced the development of products in Germany, such as facial cleansing wipes, compact deodorants and fuss-free depilatories.

Consumers were also happy to spend their money on products perceived to enhance their wellness and health. Where wellness or medical aspects were involved in marketing, brands managed to halt the onslaught of private label products through the perceived competence of established brands.

Fragrances, oral hygiene and bath and shower products suffered the most in 2003, while depilatories performed well. Private label brands were particularly strong in sun care, baby skin care and bath and shower products.

Despite Euromonitor expecting more confident consumer spending by 2005, most sectors growth will remain low as cosmetics and toiletries as a whole constitute a relatively mature market in Germany.

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