BEAUTY ONLINE - GERMANY - 2023

BEAUTY ONLINE – GERMANY –

2023
The beauty ecommerce industry has to address sustainability and fairness Susanne Krenz, Principal
issues while offering the flexibility, convenience and bargains Germans Research Analyst - Beauty
and Personal Care
are accustomed to.

© 2023 Mintel Group Ltd. All Rights Reserved.

BEAUTY ONLINE - GERMANY - 2023

Beauty Online - Germany - 2023

This report looks at the following areas:

• The impact of inflation and the Ukraine conflict The beauty ecommerce
on the online beauty category
industry has to address
• Infrastructure challenges and ethical issues
associated with ecommerce and online delivery sustainability and fairness
• German online BPC buyers' comparatively low issues while offering the
interest in digital innovations and its effect on
flexibility, convenience
online beauty
• How to grow the beauty and grooming
and bargains Germans
subscriptions category are accustomed to.
• The importance of sustainability in online beauty retail
• Purchase factors and barriers
• How to connect with specific demographics, including Millennials and Gen Z
• Consumer attitudes and behaviours pertaining to online beauty shopping

Although the online beauty market fell in 2022, this is expected to be temporary dip as sales
are forecast to rebound in 2023, even in the face of the current economic downturn. 48% of
German adults buy beauty and grooming products online.

However, a flourishing ecommerce market also means increasing pressure on Germany's

urban infrastructure and a consequent need to develop more sustainable last-mile delivery:
24% German BPC online buyers would prefer sustainable shipping options and 49% of
German adults say fair work conditions are a sign of an ethical retailer.

German consumers like discounts – 43% of online BPC buyers, especially those aged 16-34,
say discounts would encourage them to buy new beauty products. Average consumer interest

Americas: +1 (312) 932 0400

BUY THIS REPORT NOW China: +86 (21) 6032 7300
Germany: +49 (0) 211 3399 7411
€2600.00 | £2195.00 | $2995.00* India: +91 22 4445 1045
Singapore: +65 6653 3600
store.mintel.com | [email protected] Thailand: +66 2 821 5122
UK: +44 (0) 20 7606 4533

*These prices are correct at time of publication, but are subject to change due to currency fluctuations.
BEAUTY ONLINE - GERMANY - 2023

in new digital technologies is low, so introducing innovative retail tech such as virtual try-on
tools (which are most popular among digitally savvy younger adults) or the metaverse will
likely be challenging.

In the beauty subscription category, retailers can grow their customer base by offering
improved cancellation options (which appeals to 22% of online BPC buyers) and better
customisation (especially important to the most enthusiastic beauty subscribers aged 16-24).
Companies can also curate lifestage-specific boxes targeting older women.

Americas: +1 (312) 932 0400

BUY THIS REPORT NOW China: +86 (21) 6032 7300
Germany: +49 (0) 211 3399 7411
€2600.00 | £2195.00 | $2995.00* India: +91 22 4445 1045
Singapore: +65 6653 3600
store.mintel.com | [email protected] Thailand: +66 2 821 5122
UK: +44 (0) 20 7606 4533

*These prices are correct at time of publication, but are subject to change due to currency fluctuations.
Beauty Online – Germany – 2023

Report Content

EXECUTIVE SUMMARY

Key issues covered in this Report

• Overview

• The five year outlook for beauty online

Market context
• The cost-of-living crisis impacts ecommerce

• The industry needs to tackle the infrastructure issues of the ecommerce/delivery market…

• …and address the ethical issues associated with online delivery

Mintel predicts
• Market dip in 2022

• Market size and forecast

Opportunities
• Target under-35s with discounts and special offers…

• …and encouragement to sign up for beauty subscriptions

• Focus on underserved consumer groups such as older women

• Help consumers make more sustainable choices when shopping online

MARKET DRIVERS

The German economy

- Graph 1: key economic data, in real terms, 2019-24

• Inflation continues to be the key concern in 2023 for consumers, brands and the economy…

• …impacting financial wellbeing and consumer expenditure

• The cost-of-living crisis impacted ecommerce in 2022

The growth of digital technologies

• Digital infrastructure needs development

• Consumer interest in VR and the metaverse is low

Factors associated with delivery

• Finding new solutions for last-mile delivery

• Product returns negatively impact sustainability

- Graph 2: agreement that promoting the fair treatment of workers best defines an ethical retailer or brand, by age,
2022

© 2023 Mintel Group Ltd. All Rights Reserved.

Beauty Online – Germany – 2023

• Gorillas: putting the treatment of delivery drivers top of mind

• The cardboard/paper shortage is starting to affect ecommerce companies

• Boomerang trials a deposit-based ecommerce packaging system

• Faircado helps consumers to shop more sustainably

MARKET ACTIVITY

Sector size and forecast

• The market dipped 1.8% in 2022…

• …but will rebound strongly in 2023

Channels of distribution
• Bricks 'n' mortar continues to dominate German beauty retail

- Graph 3: online vs offline shopping for BPC products, by age, 2022

WHAT CONSUMERS WANT AND WHY

Purchasing beauty and grooming products online

• 25-34 year olds have reduced their online beauty buying

• Fragrances and facial skincare lead online purchases

- Graph 4: online purchase of beauty and grooming products in the last 12 months, by product type, 2021 and 2022

• Female shoppers lead for online makeup and skincare buys

• Drugstores continue to lead for BPC buying…

• …with dm and Rossmann both posting strong results for offline and online businesses

Encouraging factors for online shopping for beauty and grooming products
• Free delivery is the top motivator to shop online

• Free delivery tops the rankings

• Eco-friendly delivery is only half as important as free shipping

• Willingness to pay more for eco-friendly delivery might rise once the economy rebounds

• Retailers can further help consumers to reduce their CO2 footprint by highlighting the environmental cost of product
returns

• Toern pioneers sustainable product returns

• Product samples are an important online purchase driver

• Snappd offers recyclable single-dose sample sachets

Use of beauty and grooming subscription services

• BPC subscription services must be flexible and convenient and give discounts

- Graph 5: factors that would encourage use or more frequent use of beauty and grooming subscription services, 2022

• Signing up for loyalty rewards

© 2023 Mintel Group Ltd. All Rights Reserved.

Beauty Online – Germany – 2023

• Flexibility and enhanced rewards are key

• Offer greater flexibility in subscription intervals

• Curate subscription boxes for older women…

• …or focus on lifestages such as menopause

• Boost the customisation factor by making it a game…

• …or leave product selection entirely up the consumer

Online beauty and grooming shopping behaviours

• German consumers like discounts and impulse shopping

- Graph 6: online beauty and grooming shopping behaviours in the last 12 months, 2022

• German consumers like a bargain and buying BPC on impulse

• Younger buyers are careful with their money

• Data privacy is a concern for younger Germans

Attributes of online beauty and grooming tools

• Online beauty diagnostics and try-on tools do not (yet) play a significant part in the customer journey

- Graph 7: attributes associated with online beauty and grooming tools, 2022

• Virtual try-on tools mostly resonate with very young consumers

• Brands could organise pop-up demonstrations of digital customisation or diagnostic tools in store

RETAILER ACTIVITY

Retail innovation
• Shiseido explores the metaverse in a collab with Douglas

• Luxury fast delivery start-up Arive becomes a local marketplace

• Douglas and Gorillas receive an award for beauty delivery collaboration

• Douglas launches skin diagnostic tech on its app

Social commerce and live streaming

• Social commerce remains a niche retail channel in Germany

• Live streaming in Germany: still not mainstream

• TikTok's live streaming in the post-pandemic UK has been slow to gain traction…

• …as other social media companies are rolling back live streaming activities in Europe

Direct to consumer
• In decline? DTC in the US

• DTC in Germany

• Inspired by Beauty Pie: Uncorrupted Beauty

© 2023 Mintel Group Ltd. All Rights Reserved.

Beauty Online – Germany – 2023

APPENDIX

Appendix – products covered, abbreviations, consumer research methodology and language usage
• Products covered in this Report

• Abbreviations

• Consumer research methodology

• A note on language

Appendix – TURF analysis methodology

• TURF analysis methodology

• TURF analysis

Appendix – market size and central forecast methodology

• Forecast methodology

• Forecast methodology – fan chart

• Market size – value

• Market forecast and prediction intervals – value

© 2023 Mintel Group Ltd. All Rights Reserved.

BEAUTY ONLINE - GERMANY - 2023

About Mintel Reports: Germany

Access our reports now and get the most What makes us unique?
accurate, credible and powerful data, insights
A 360-degree view of German
and analysis. Mintel Reports Germany gives you
markets
everything you need to know about what German
consumers want and why. Experienced analysts based in
Germany

In each report, we're analysing the market, new Expert-led support from global
product innovations and the competitive category experts
landscape, as well as consumer behaviours
across Germany. Our local analysts, supported by
our team of global experts then translate it into
what it means for you.

How Mintel Reports Germany will help your business grow:

Identify future Make better decisions See the trends and innovations
opportunities by faster by keeping impacting Germany both on a
understanding what informed on what's local and global level
German consumers want happening across your
and why market

Americas: +1 (312) 932 0400

BUY THIS REPORT NOW China: +86 (21) 6032 7300
Germany: +49 (0) 211 3399 7411
€2600.00 | £2195.00 | $2995.00* India: +91 22 4445 1045
Singapore: +65 6653 3600
store.mintel.com | [email protected] Thailand: +66 2 821 5122
UK: +44 (0) 20 7606 4533

*These prices are correct at time of publication, but are subject to change due to currency fluctuations.
BEAUTY ONLINE - GERMANY - 2023

Disclaimer
This is marketing intelligence published by Mintel.
The consumer research exclusively commissioned
by Mintel was conducted by a German licensed
market survey agent (see Research Methodology
Europe for more information).

Terms and Conditions of use

Any use and/or copying of this document is subject
to Mintel‘s standard terms and conditions, which are
available at http://www.mintel.com/terms

If you have any questions regarding usage of this

document please contact your account manager or
call your local helpdesk.

Published by Mintel Group Ltd

www.mintel.com
email: [email protected]

Help desk

UK +44 (0)20 7778 7155

US +1 (312) 932 0600

Australia +61 (0)2 8284 8100

China +86 (21) 6386 6609

Germany +49 211 2409023

India +91 22 4090 7217

Japan +81 (3) 6228 6595

Singapore +65 (0)6 818 9850

© 2023 Mintel Group Ltd. All Rights Reserved.