Three Trends Shaping the German Beauty Market in 2023 and Beyond

The end of 2022 offered festive occasions and opportunities to celebrate out of home for the first time since the beginning of the COVID-19 pandemic. Fast forward to Spring 2023, and most of the pandemic restrictions in Germany have been lifted. That means: goodbye masks, hello (more) make-up!

While the rediscovery of the creative, playful component of putting on make-up is the industry’s greatest opportunity, it’s also its most critical challenge. Here are three trends our analysts have identified in the German makeup market this year:

One development we are seeing in many prominent categories is the move towards hybrid products. These either incorporate a mix of existing product features, or the addition of new benefits to familiar formats. The decorative cosmetics segment has some great opportunities for additional skincare ingredients. As the latest Mintel research reveals, the majority of consumers are interested in ingredients claiming to have benefits for the skin.

In order not to operate past consumer needs, going for the right product feature or the most appealing claim is key for brands. For example, anti-ageing and protective formulas, as well as acne-fighting products, are increasingly more in demand than those with brightening properties. Only 6% of female make-up consumers in Germany express interest in ‘brightening,’ which was promoted on 71% of product launches in 2021. And while a third of German makeup buyers under 35 are looking for anti-acne products, only 2-4% of innovations carry this specific claim.

In line with the aforementioned trend for hybrids, protective properties such as integrated SPFs are equally in vogue. Only a third of foundations launched from January to September 2022 offered UV protection.The latest Mintel Report reveals, however, that more than 40 percent of women who buy make-up are actually looking for this property in foundation. Since many products already have UV filters, companies could increase the concentration of SPF, and claim  protective properties in a more prominent way. Innovations like cutaneous microbiotics, which not only act as a protective shield against harmful UV effects, but can also reverse their negative aspects, also have great potential.

Skin changes with the years of life. Brands that advise their consumers on discovering new make-up routines and looks can benefit from mature consumers’ willingness to experiment. Mintel data reveals that over a third of female make-up shoppers in Germany between 55 and 64 enjoy experimenting with colour cosmetics. Brands can reach this target group in multiple ways, including in-store advice on anti-ageing product claims, to differentiated sections of their online shops, or even apps. It has the added bonus of offering consumers transparent and informative communication, which can help brands defy consumers’ increased scepticism and crisis-ridden wallets.

Opportunities arise from hybrid products that offer more than one possibility of application. Beyond that, protective qualities in make-up are equally appealing to consumers, and worthy to star product claims. Exploring new ways of interaction, especially on new channels, with more diverse consumers is crucial. And last but not least, it’s all about the lightness and joie de vivre that make-up still stands. Hardly any other consumer product can capitalise on fun the way beauty brands can.