The market for makeup - Germany

In recent years, the makeup market has seen strong growth and is considered a significant segment of the cosmetics industry. Makeup is also referred to as decorative cosmetics and includes products that change or enhance appearance. These include products such as blushers, concealers, mascara, eye makeup, lipstick, and foundation (although in popular parlance makeup often just means foundation). In Germany, the annual growth rate in 2021 was 2.5% (CAGR), and the companies with the largest market share in Germany are Cosnoca GmbH, L'Oréal, and Beiersdorf AG. Globally, eye makeup accounts for 54% of the total revenue. The global market has also witnessed steady growth. In recent years, the market for cosmetics has grown at an average CAGR (annual growth rate) of 4.5. The wide range of beauty criterias according to each countries' culture has been the biggest factor of the recent market growth at the global scale. The market leaders in the global market are P&G, L'Oréal, and Shiseido. The COVID-19 crisis has led to a slump in sales of makeup between 2019 and 2021, but the numbers have already recovered to pre-pandemic levels in 2022. The slump can be explained by lower demand as a result of exit restrictions, and the crisis has led companies to rely more on e-commerce to open up new distribution channels. At the same time, there is growing interest among consumers in animal-friendly and sustainable cosmetic products, leading to a trend towards vegan and natural products. This is also reflected in growth rate expectations in the area of vegan decorative cosmetics. In fact, the expected annual growth rate of vegan cosmectics is 6.5% until 2027.