The German luxury beauty market is on a path of modest but steady growth to 2030, with younger consumers acting as key drivers. This group values both premium experiences and products, with fragrances and colour cosmetics maintaining strong appeal because of their mood-boosting and identity-driven qualities. Established brand heritage and limited editions also remain powerful purchase triggers, blending familiarity with innovation.
Low consumer financial confidence presents a challenge, with cautious spending likely to affect premium categories. Luxury beauty brands must balance exclusivity with accessibility and ensure purchases feel meaningful – consumers will scrutinise the value and authenticity behind premium price tags.
Opportunities lie in embracing attainable luxury through minis and loyalty rewards to capture deliberate yet indulgent shoppers. Experience-driven strategies, such as bundling services with product lines or offering in-store diagnostics, cater to younger consumers’ preference for treatments over products. Luxury can be positioned as a sustainability incubator through refillable formats, resale partnerships and regionally inspired editions.
This report looks at the following areas:
- Purchases of premium/luxury BPC products by demographic and product category
- Amount willing to spend on premium/luxury BPC products
- Incentives to purchase premium/luxury BPC products, with price and proof of effectiveness leading the way
- Expectations of the luxury purchase journey, with personalisation and experiential retail emerging as key drivers
- The roles of treat culture, localism and resales in the luxury beauty market
Capture demand by turning luxury into a space for planned indulgence, experience-driven services and conscious innovation.
Mihaela Suhalitca, Research Analyst – Beauty and Personal Care
Market Definitions
For the purposes of this Report, Mintel has used the following definitions.
- Premium/luxury brands include high-end priced brands typically sold behind the counter in department store beauty halls (eg Lancôme, Clarins), brands that are part of designer fashion and accessories lines (eg Dior, Chanel) and those with their own luxury stores (eg M·A·C, Jo Malone).
Please note that the terms ‘premium’ and ‘prestige’ are used interchangeably throughout this Report.
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EXECUTIVE SUMMARY
- What you need to know
- Opportunities
- Outlook
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OPPORTUNITIES
- Tap into the attainable luxury mindset
- Germans are discerning in their choice of luxury products
- Blend emotional rewards with smart access to prestige
- Minis make for ideal gateways to prestige beauty
- Create indulgent beauty-travel experiences
- Captivate younger consumers with experience-driven luxury
- Experience-led consumption opens opportunities
- Graph 1: behaviours towards experiencing premium/luxury BPC products, by age group, 2025
- Expand skin-/haircare services in retail environments
- Turn luxury into a sustainability incubator
- Sustainability and localism define luxury beauty expectations
- Position luxury as a local sustainability testbed
- Inspiration: brands highlighting local traditions and craftmanship
- Use resale to marry affordability with sustainability
- Inspiration: L’Oréal’s #JoinTheRefillMovement campaign highlights luxury refills
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CONSUMER
- Purchase of BPC products
- Almost three in 10 German beauty shoppers buy premium/luxury products
- Germans buy less luxury compared to other Europeans
- Graph 2: types of BPC products purchased in the last 12 months, 2025
- Younger shoppers drive premium/luxury spending
- Graph 3: purchase of premium/luxury products, by age group, 2025
- Brand diversity grows with product engagement
- Graph 4: types of BPC products purchased in the last 12 months, by repertoire of BPC products bought, 2025
- Luxury shoppers’ top picks
- Graph 5: types of BPC brands bought, by product category, 2025
- Amount willing to spend on BPC products
- Conservative spending dominates, but quality still matters
- Graph 6: maximum amount willing to spend on a single BPC product, by age group, 2025
- Large repertoires fuel premium purchases
- Graph 7: repertoire of BPC products bought, by maximum amount willing to spend on a single BPC product, 2025
- Germans are unwilling to splurge on categories other than fragrances and colour cosmetics
- Graph 8: amount willing to spend on a single BPC product, by product category, 2025
- Emotional value drives high spending on fragrances
- Graph 9: amount willing to spend on a single fragrance product, by generation, 2025
- Quality perceptions impact makeup spending among younger shoppers
- Short-lived beauty trends can be a pitfall
- Spending shifts to the basics when money is tight
- Graph 10: BPC products consumers would prioritise spending on when worried about money, 2025
- Purchase journey expectations
- German consumers hold high standards for luxury shopping experiences
- Personalisation elevates the premium gifting experience
- Experiential retail appeals to younger shoppers
- Incentives to purchase premium/luxury BPC products
- Discounted prices drive premium/luxury purchases
- Gen Z and Millennials seek proof before purchasing…
- Graph 11: selected incentives to purchase premium/luxury BPC products, by generation, 2025
- …but brand image holds sway
- Graph 12: selected incentives to purchase premium/luxury BPC products, by generation, 2025
- Behaviours around premium/luxury BPC
- Behaviours around value along the purchase journey
- Graph 13: behaviours towards shopping for premium/luxury BPC products, 2025
- Gen Z turn patience into prestige purchases
- Graph 14: % who would save to buy a premium/luxury product rather than buy an own-label/mass-market one immediately, by generation, 2025
- Secondhand beauty appeals to younger Germans
- Graph 15: % of consumers who would consider buying secondhand BPC products, by age group, 2025
- Premium goods continue to serve as status symbols
- Graph 16: % of BPC shoppers who agree that owning premium/luxury products makes one stand out, by gender and age, 2025
- Luxury influencers’ relatability falls flat
- Adapt to the shifts in luxury content on social media
- Localisation coexists with global appeal among Germans
- Graph 17: behaviours towards localism in premium/luxury BPC, by age group, 2025
- Global offerings intrigue Gen Z and Millennials
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INNOVATION
- Premium products drive BPC launches in Germany
- Graph 18: launches of BPC products, by beauty price positioning, 2021-25
- LVMH and Estée Lauder continue to lead in prestige innovation
- Graph 19: launches of prestige, luxe and super-luxe BPC products, by ultimate company, 2023-24
- Skincare launches dominate prestige NPD
- Graph 20: % of prestige, luxe and super-luxe launches by category, 2021-25
- Premium facial skincare launches use sensoriality as a hallmark of effectiveness
- Segment longevity facial skincare solutions by age group
- Lip care innovation can be an entry point into premium/luxury
- Premium haircare treatment launches focus on scalp health
- Long-lasting wear moves into long-lasting results in premium colour cosmetics
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MARKET DRIVERS
- The German economy is expected to stagnate in the second half of 2025
- Consumers’ low financial confidence poses a risk to the segment
- #ManufactureTok and the threat of trade war escalations
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APPENDIX
- Report scope and definitions
- Market definition
- Abbreviations
- Methodology – consumer research
- Consumer research methodology
- TURF analysis – methodology
- TURF analysis – expectations of the luxury purchase journey
- A note on language
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