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Perfume & Cosmetics Manufacturing in Germany - Market Research Report (2015-2030)

Yuhua Tang Yuhua Tang Frankfurt, Germany Last Updated: September 2025 WZ C20.42DE

Revenue

€10.6bn

2025

€10.6bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

34,112

Businesses

656

Wages

€X.Xbn

Perfume & Cosmetics Manufacturing in Germany industry analysis

The production of personal care products and fragrances in Germany has been characterised by a large number of regulatory requirements and structural challenges over the past five years. National and European regulations, such as the ban on certain chemicals and microplastics as well as new labelling requirements, demand extensive investment in the areas of product development and production modernisation. Due to the new regulations, manufacturers were forced to adapt formulations, test alternative ingredients and implement new systems to prove the origin of raw materials, which resulted in significant cost increases. These developments increased the barriers to market entry and strengthened the competitive position of established manufacturers with extensive compliance experience. Industry sales have declined slightly over the past five years, falling by an average of 0.2% annually.

Trends and Insights

  • Skin care products are increasingly developing into self-care tools that promote holistic well-being and contribute to mental relief. Consumers are willing to pay higher prices for products with calming fragrances or herbal sleep aids, opening up new sales potential and niche markets.
  • The tariffs of 20% threatened by the USA on personal care products and fragrances from the European Union would significantly worsen the export opportunities of German manufacturers. Companies that rely on the US market but do not have local production facilities in the USA are particularly affected.
  • The South region has the most companies in the sector. The decisive reasons for choosing this region as a location are its geographical proximity to important raw material suppliers on the one hand and its good connections to important export markets on the other.
  • Imports of low-priced cosmetic products are a substitute for the products of German manufacturers. Foreign manufacturers are able to produce and offer the same or similar products at lower costs due to lower labour costs, cheaper raw materials or more efficient production processes.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated €10.6bn in 2025.

Trends and Insights

Manufacturers invest in research and development to fulfil regulatory requirements

  • The manufacture of personal care products and fragrances is subject to increasing regulation and stricter reporting requirements. National and European regulations - including the ban on intentionally added microplastics from October 2023, restrictions on retinol content from November 2025 and the ban on 21 specific carcinogenic, mutagenic or reprotoxic chemicals from September 2025 - pose considerable challenges for manufacturers. New labelling obligations and comprehensive documentation requirements are increasingly affecting the entire supply chain, from development to production and distribution.
  • Additional trends and insights available with purchase
Perfume & Cosmetics Manufacturing in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The market for personalised cosmetics solutions is likely to continue to grow

  • Instead of offering standardised products for broad target groups, more and more cosmetics companies are using advanced technologies to develop customised solutions. This ranges from the individual composition of a cream based on a skin analysis to personalised skincare routines developed by artificial intelligence. In this way, customers are transformed from passive consumers into active partners in the development of their own skincare product.

Biggest companies in the Perfume & Cosmetics Manufacturing in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
Beiersdorf AG
2,430.0
The Procter & Gamble Company
1,509.0
L’Oréal S. A.
921.7

To view the market share and analysis for all 10 top companies in this industry, view purchase options.

Products & Services Segmentation

Perfume & Cosmetics Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Skin and facial care products, Decorative cosmetics and Hair care products. Skin and facial care products is the largest segment of the Perfume & Cosmetics Manufacturing in Germany.

Trends and Insights

Skin and facial care products are increasingly in demand as a result of demographic change

  • Skin and facial care products are used to cleanse, care for, protect and beautify the skin and face. The product range includes skin and facial cleansing products such as shower gels and scrubs as well as skin and facial care products such as sun creams and face masks.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The companies operating in this sector produce personal care products such as cosmetics, dentifrices and oral care products, perfumes and deodorants as well as soaps. However, the production of natural essential oils is not part of the industry's activities.

What's included in this industry?

Products and services covered in the Perfume & Cosmetics Manufacturing industry in Germany include Skin and facial care products, Decorative cosmetics, Hair care products, Fragrances and deodorants, Oral and dental care products and Shower gels and bath additives.

Companies

Companies covered in the Perfume & Cosmetics Manufacturing industry in Germany include Beiersdorf AG, The Procter & Gamble Company and L’Oréal S. A.

Purchase this report to view all 10 major companies in this industry.

Related Terms

Related terms covered in the Perfume & Cosmetics Manufacturing industry in Germany include trademark, anti-ageing product, private label, pomade, foundation and microplastics.

Industry Code

WZ 2008

WZ 20.42 - Perfume & Cosmetics Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Skin care products are increasingly developing into self-care tools that promote holistic well-being and contribute to mental relief. Consumers are willing to pay higher pric...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The tariffs of 20% threatened by the USA on personal care products and fragrances from the European Union would significantly worsen the export opportunities of German manufac...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The South region has the most companies in the sector. The decisive reasons for choosing this region as a location are its geographical proximity to important raw material su...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Imports of low-priced cosmetic products are a substitute for the products of German manufacturers. Foreign manufacturers are able to produce and offer the same or similar pro...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Beiersdorf is expanding its commitment to climate and resource protection. To this end, the company acquired the natural cosmetics brand Stop the water while using me in 2020...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Beiersdorf AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of The Procter & Gamble Company's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of L’Oréal S. A.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 7 additional companies

Detailed analysis

  • Description and key data for Beiersdorf AG, and factors influencing its performance in the industry
  • Description and key data for The Procter & Gamble Company, and factors influencing its performance in the industry
  • Description and key data for L’Oréal S. A., and factors influencing its performance in the industry
  • Description, key data and performance trends for 7 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The industry is benefiting from growing retail sales of personal care products and cosmetics. Drugstores are the industry's most important sales market. Consumers generally c...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry has a moderate profit margin. Large industry players can utilise economies of scale through high production volumes and thus increase their profitability. In add...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Perfume & Cosmetics Manufacturing industry in Germany in 2025?

The market size of the Perfume & Cosmetics Manufacturing industry in Germany is €10.6bn in 2025.

How many businesses are there in the Perfume & Cosmetics Manufacturing industry in Germany in 2025?

There are 656 businesses in the Perfume & Cosmetics Manufacturing industry in Germany, which has grown at a CAGR of 0.3 % between 2020 and 2025.

How may import tariffs affect the Perfume & Cosmetics Manufacturing industry in Germany?

The Perfume & Cosmetics Manufacturing industry in Germany is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.

How may export tariffs affect the Perfume & Cosmetics Manufacturing industry in Germany?

The Perfume & Cosmetics Manufacturing industry in Germany is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.

Has the Perfume & Cosmetics Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Perfume & Cosmetics Manufacturing industry in Germany has been declining at a CAGR of 0.2 % between 2020 and 2025.

What is the forecast growth of the Perfume & Cosmetics Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Perfume & Cosmetics Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Perfume & Cosmetics Manufacturing industry in Germany?

The biggest companies operating in the Perfume & Cosmetics Manufacturing industry in Germany are Beiersdorf AG, The Procter & Gamble Company and L’Oréal S. A.

What does the Perfume & Cosmetics Manufacturing industry in Germany include?

Skin and facial care products and Decorative cosmetics are part of the Perfume & Cosmetics Manufacturing industry in Germany.

Which companies have the highest market share in the Perfume & Cosmetics Manufacturing industry in Germany?

The company holding the most market share in the Perfume & Cosmetics Manufacturing industry in Germany is Beiersdorf AG.

How competitive is the Perfume & Cosmetics Manufacturing industry in Germany?

The level of competition is moderate and steady in the Perfume & Cosmetics Manufacturing industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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