Europe remains the largest beauty market in the world with annual revenues of US$85.88 billion, ahead of North America and China.
Germany is the number one regional market with beauty and personal care sales of US$15.08 billion, followed by France (US$12.46 billion) and the UK (US$11.91 billion).
More importantly for Australian brands, Germany is the largest natural and organic beauty market in Europe.
Leading local brands such as Lanolips and Nude by Nature have entered the German market through Douglas, the largest European specialist beauty and fragrance chain, with 2400 stores in 19 countries.
The majority of Australian beauty brands targeting the German market, such as Miranda Kerr’s Kora Organics, are premium or prestige.
Upmarket beauty sales in Germany flatlined to US$3.5 billion in 2019, but the continent’s leading economy was the only European market that didn’t experience a decline, reports the NPD Group.
Sales of prestige fragrances and skincare increased by 1 per cent and 3 per cent, respectively.
According to NPD, double digit growth in online sales boosted the performance of prestige beauty brands.
Germany’s dynamic e-commerce market now represents 20 per cent of total prestige skincare sales.
Naturally-based and organic skincare and beauty supplements were major contributors to growth in the category, notably facial serums, moisturisers and anti-ageing products.
Transparency and sustainability have become more important to German consumers, notes Samantha Grand, Germany beauty director, NPD Group.
“This could be a benefit for any brand with natural or green positioning,” she said.