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Revitalized Sales Amidst Crises but Sluggish Exports

Economic growth persists amid crises, however, exports are experiencing a decline

Economic growth persists amidst crises, yet export rates falter
Economic growth persists amidst crises, yet export rates falter

Strong sales growth amid crises, yet exports decline - Revitalized Sales Amidst Crises but Sluggish Exports

The domestic business sector has been the sole driver of growth for the cosmetics and household cleaner industry in Germany, according to a report by the Industry Association for Body Care and Detergents (IKW). The home market grew by a significant 6.9 percent to reach 11.9 billion euros, as reported by the IKW.

However, the export sector is facing challenges due to the geopolitical situation, as stated by Thomas Keiser, CEO of IKW. The foreign business sector experienced a decline, with sales of 5.9 billion euros down by 3.0 percent. For many companies, this geopolitical situation poses an existential challenge.

The IKW, based in Frankfurt am Main, represents over 470 companies with a total of around 178,000 employees. The member companies of IKW account for around 95 percent of the German market.

In the first half of 2025, cosmetics and household cleaner manufacturers increased their sales by 3.6 percent to reach 17.8 billion euros. This growth is expected to continue for the full year, with the domestic business expected to increase by 2.3 percent to around 23.4 billion euros.

The IKW attributes the slower growth rates to increased costs for energy and raw materials, as well as increasing bureaucracy. Excessive bureaucracy, according to Keiser, hinders innovation and weakens the German location.

Despite the strong domestic growth, there are no specific search results listing the member companies of the IKW or identifying which ones produce in Frankfurt am Main. The IKW did not forecast a growth rate for the foreign business, nor did Thomas Keiser mention any expected continuation of the sales increase for the full year.

The cosmetics industry in Germany had sales of 34.6 billion euros in 2024. While the home market grew, foreign business experienced a decline. This trend, driven by the geopolitical challenges, may continue to impact the industry in the coming years.

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