Make-up - Germany - August 2008

Make-up - Germany - August 2008

About this report

The colour cosmetics market continues to grow. Value sales reached €1,460 million in 2008, up 5% on 2007, thanks to a strong desire to look attractive amongst German women and more and more women in paid employment.

There are three divergent trends: towards more sophisticated and high-tech lines; towards natural and organic lines; and towards economy lines. Established suppliers are taking a tip from the skincare category and catering more successfully for the ageing female population, adding care and anti-ageing properties.

L’Oréal leads the market (29% of sales), with its two heavily promoted flagship brands L’Oréal Paris and Maybelline Jade and the premium Lancôme brand. Coty is in second place (10%) with Rimmel and Astor, and Beiersdorf’s Nivea Beauté, Dr. Scheller’s Manhattan and P&G’s Max Factor vie for the third spot.

The countries examined within the Consumer Goods Intelligence series of reports are France, Germany, Italy, Spain and the UK. Mintel last examined this market in Fragrances and Cosmetics, Germany, June 2006. Please note that some data are revised from previous reports due to the inclusion of data on make-up sets.

Contents

Issues in the Market
Definition
Consumer research
Abbreviations
Market in Brief
Growth continues for a third year
Efforts to target specific age groups pay off
The improved economic climate helps higher-margin lines
L’Oréal powers ahead with a strong media presence
Although the consumer base is growing, penetration remains comparatively low
Natural lines to become more prolific
Internal Market Environment
Key points
Strong desire to look attractive
Figure 1: Attitudes towards personal appearance and facial skincare in Germany and comparison index, 2007
Price becoming more important
Figure 2: Attitudes towards branding and price in make-up products, 2002-06
Health and environment take second place to celebrity
Figure 3: Attitudes towards cosmetics, 2002-06
Broader Market Environment
Key points
The ageing female population inhibits volume sales
Figure 4: Trends in German adult female population, by age, 2003-13
Increasing female employment drives the market
Figure 5: Trends in German female employment, 2002-12
Favourable economic outlook helps the market grow
Figure 6: Trends in German PDI, consumer expenditure and GDP, at current prices, 2003-13
EU guidelines for product safety
Who’s Innovating?
Key points
France and UK have the highest amount of cosmetics NPD
Figure 7: New product launches in make-up, % by country, 2003-07
Figure 8: New product launches for make-up in Germany, by top 10 companies, 2007
Mature beauty
Targeting teens
Fuller lips
Natural and organic…
…vs technology
Bronzing
Cosmetics on-the-go
Market Size and Forecast
Key points
Sales recovery since 2006
Figure 9: German retail value sales of make-up, at current and constant prices, 2003-13
Sales forecast to grow to 2013
New formats and caring ingredients
Minerals
Anti-ageing crosses over from face care
Tailored sets
Designers emerge
Natural make-up is a growing niche; hi-tech is also a winner
Prospects
Anti-ageing trend may not last
Greater confidence among consumers will help
Perfumeries will have to adjust
Natural to continue growth
Forecast
Factors used in the forecast
Segment Performance
Key points
Eye make-up takes over a third of cosmetics expenditure
Figure 10: German retail value sales of make-up, by type, 2006-08
Forecast sales by sector
Figure 11: Forecast German retail value sales of make-up, by sector, 2009-13
Eye make-up
Figure 12: German retail value sales of eye make-up, by type, 2006-08
Face make-up
Figure 13: German retail value sales of face make-up, by type, 2006-08
Lip make-up
Figure 14: German retail value sales of lip make-up, by type, 2006-08
Nail make-up
Figure 15: German retail value sales of nail make-up, by type, 2006-08
Market Share
Key points
A plethora of make-up brands
Figure 16: Brands’ value shares of make-up, 2006-08
Figure 17: Brands’ estimated value shares of make-up, % by segment*, 2007
L’Oréal Paris increasingly popular, but own-labels now lead
Figure 18: Popularity of colour cosmetics brands, 2003-07
Companies and Products
Brand map
Beiersdorf
Coty/Lancaster
Dr. Scheller
L'Oréal
Procter & Gamble
Brand Communication and Promotion
Key points
Italy devotes the most to advertising make-up
Figure 19: Main monitored media advertising expenditure on make-up, by country, 2005-07
Figure 20: Share of adspend vs market share, by brand, 2007
Figure 21: Main monitored media advertising expenditure on make-up, by brands spending €1 million or more, 2007
Figure 22: Top advertised brands, 2007
Channels to Market
Key points
Self-service druggists have the right image
Figure 23: German retail value shares of make-up, by outlet type 2006-08
Grocers revise strategies and bottom out; discounters rise
Nivea goes it alone
Naturals go mainstream
Parties the new trend?
Perfumeries strong for eye make-up
Figure 24: German retail value shares of make-up, by segment, 2007
The Consumer – Pan European Overview
Key points
Penetration in Germany remains lower than European average …
…as does frequent use
German women want to be well-groomed
Figure 25: Penetration and frequency of using make-up, by women, by country, 2007
The Consumer – Who Uses
Key points
Loyal users
Figure 26: Change in consumer base for make-up in Germany, 2003-07
Use of make-up strongly dependent on age, employment and higher incomes
Figure 27: Use of make-up*, Germany, 2007
Foundation
Figure 28: Most valuable consumers for volume sales of foundation, Germany, 2007
Blusher/highlighter
Figure 29: Most valuable consumers for volume sales of blushers/highlighters, Germany, 2007
Lipstick/lipgloss
Figure 30: Most valuable consumers for volume sales of lipstick/gloss, Germany, 2007
Eye make-up
Figure 31: Most valuable consumers for volume sales of eye make-up, Germany, 2007
Nail varnish
Figure 32: Most valuable consumers for volume sales of eye make-up, Germany, 2007
Appendix
Internal Market Environment
Figure 33: Attitudes towards appearance and cosmetics, by country, 2007
The Consumer – Who Uses
Figure 34: Use of make-up*, by demographic sub-group, Germany 2007
Foundation
Figure 35: Penetration and frequency of using foundation, Germany, 2007
Blushers/highlighters
Figure 36: Penetration and frequency of using blushers and highlighters, Germany, 2007
Lipstick/gloss
Figure 37: Penetration and frequency of using lipstick/lipgloss, Germany, 2007
Eye make-up
Figure 38: Penetration and frequency of using eye make-up, Germany, 2007
Nail varnish
Figure 39: Penetration and frequency of using nail varnish, Germany, 2007