Germany Ingredient Trends in BPC Market Report 2024
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Report Summary
Although the German economy shows signs of recovery, consumer financial confidence remains fragile. This economic backdrop impacts spending in the BPC category as consumers prioritise essential products, potentially reducing their repertoires. However, the extent of research shoppers engage in is heartening: it spotlights consumer interest in ingredients and allows brands to have open and honest conversations about the topic.
Significant threats to the category are Germans’ confusion, lack of understanding around ingredients and avoidance of unfamiliar formulations. Simplifying the research process, overseeing social media discussions and encouraging younger women, who are more adventurous, to create hype around new products can aid in this context.
There are opportunities to help consumers make the best of their routines by giving them a better understanding of the role of actives in beauty products. Achieving desired results, such as increased hydration or breakout control, will up the chance of repeat purchases.
The communication around ingredients is pivoting towards emphasising the research and scientific rigour behind product formulations, providing opportunities for brands. Science-backed beauty not only aligns with consumer expectations but also allows brands to stand out in a crowded market.
This report looks at the following areas:
- The effects of the cost-of-living crisis on the ingredients in BPC market
- The extent of and motivations for research on ingredients in BPC products, with the avoidance of skin irritants and a preference for natural formulations emerging as important topics
- Attributes associated with select BPC ingredients and how to leverage them to better cater to consumer needs
- Behaviours towards beauty ingredients, led by the avoidance of unfamiliar formulations, a preference for high concentrations of actives and an interest in holistic beauty solutions
- Effective communication and marketing strategies on the topic of ingredients in beauty products
Guide consumers to the right actives and explain the science behind them to boost growth. Building on the tried and tested can create hype around new formulations.
Mihaela Suhalitca, Research Analyst – Beauty and Personal Care
Table of Contents
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EXECUTIVE SUMMARY
- The five-year outlook for ingredients in BPC
- Market context
- Fragile financial confidence impacts spending
- Environmental and legal constraints reshape ingredient sourcing
- Mintel predicts
- Research-led communication around ingredients will become the norm
- The demand for allergy-safe formulations is bound to increase
- Consumer scepticism puts a damper on innovative ingredient-sourcing methods
- Opportunities
- Create hype around innovative ingredients by pairing them with classics and catering to younger women
- Germans associate efficacy with a high concentrations of actives…
- …pointing to opportunities to teach them how actives work
- Appeal to Baby Boomers with free-from and allergy-safe formulas
- Supercharge the communication around ingredients
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MARKET DRIVERS
- The German economy
- 2024 remains challenging
- Graph 1: key economic data, in real terms, 2019-25
- The inflation rate is bouncing back to more conventional levels
- Inflation is still the key factor affecting consumers' finances…
- …confidence and expenditure
- Graph 2: financial confidence index, 2022-24
- Low financial confidence leads to slimmed-down repertoires
- Legislative factors
- Legislative changes put pressure on brands
- Legislation around ingredients points to opportunities to reformulate
- Environmental and demographic factors
- Germans take a holistic approach towards beauty…
- …and prefer natural formulations
- Demographic changes pose threats but also open opportunities
- Environmental factors impact ingredient sourcing
- Leverage AI for ingredient research
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WHAT CONSUMERS WANT AND WHY
- Extent of and motivation to research ingredients in BPC products
- Consumers are more likely to research ingredients in haircare and oral care, followed closely by bodycare…
- Graph 3: research of ingredients in beauty and grooming products, by product category, 2024
- …but skincare and suncare category buyers especially zone in
- Graph 4: category buyers who research ingredients in beauty and grooming products, by product category, 2024
- Dispel concerns around harmful ingredients in suncare products
- The repertoire of research among category buyers
- Graph 5: repertoire of types of BPC products researched, by product type, 2024
- The volume of posts regarding ingredients in BPC is rising
- Graph 6: the volume of social media posts around ingredients in BPC, by month, 2021-24
- Germans are concerned about skin irritants and prefer natural formulations
- Graph 7: reasons for researching ingredients in BPC products, 2024
- Cater to a growing need for allergen-free products
- Underline the natural narrative to capture older consumers' attention…
- …but dispel the notion that natural is always safer
- Build on the popularity of existing products to introduce new solutions for skin/hair concerns
- Colour cosmetics and fragrances bring the fun factor
- Engage with ingredient-curious consumers on social media…
- …and steer ingredient-focused content to avoid confusion
- Barriers to ingredient research when buying BPC products
- Time constraints and a lack of understanding deter consumers from researching the ingredients in their BPC products
- Graph 8: barriers to ingredient research when buying BPC products, 2024
- Cut down on research time with on-pack scoring systems
- AI tools and the 'gamification' of ads can help younger consumers stay informed
- Learn from 4AM's social media presence
- Product claims are enough to convince parents
- Employ third-party seals to increase trustworthiness
- Attributes associated with BPC ingredients
- Vitamin C and hyaluronic acid continue to be the most familiar active ingredients
- Graph 9: attributes associated with BPC ingredients, 2024
- Dispel notions of instant results among younger consumers
- Graph 10: BPC ingredient researchers who expect ingredients to provide instant results, by generation, 2024
- Impress men with multipurpose formulations
- There is still room to teach consumers the benefits of actives
- Graph 11: benefits associated with BPC ingredients, 2023
- Position vitamin C for use before instead of after sun exposure
- Graph 12: select benefits associated with Vitamin C usage, by country, 2023
- Bring probiotics to the frontline of the battle against acne
- Highlight the hydrating properties of niacinamide
- Ingredients discouraging BPC buyers
- Formulations with silicones or oils deter almost half of German BPC shoppers from purchasing a product
- Graph 13: ingredients that would discourage the purchase of BPC products, 2024
- Baby Boomers are the most diligent in avoiding certain ingredients
- Reach older generations with free-from claims
- Graph 14: BPC shoppers who would be discouraged from purchasing a product if it contained select ingredients, by generation, 2024
- Tread carefully with petroleum-based formulations
- Graph 15: BPC shoppers who would be discouraged from purchasing a product if it contained petroleum-based ingredients, by market, 2024
- Look into bio-based alternatives to silicones…
- …or relinquish them altogether as a point of differentiation
- Vegan formulations continue to appeal to all age groups
- Call out the gentleness of fragrance-free products
- Behaviours related to ingredients in BPC products
- Unfamiliarity is a strong deterrent, while high concentrations of actives appeal
- Graph 16: behaviours around researching for ingredients in BPC, 2024
- Pair emerging ingredients with well-known ones to encourage adoption
- Create hype around existing but overlooked ingredients
- Younger German women do not shy away from unfamiliar ingredients
- Highlight innovative ingredients to younger women
- Underline ingredient enhancements, big or small
- Efficacy is tied to high concentrations of actives
- Continue to call out actives and their roles
- Gen Zers and parents leverage social media
- Ingredient checker apps can ease concerns
- Cater to the needs of oily and blemish-prone skin
- The interest in functional food and ingestible ingredients aligns with Germans' holistic approach to health
- Graph 17: behaviours towards ingredients in BPC products, 2024
- The interest in food-based ingredients with functional benefits shows premiumisation potential
- Sustain the results of topical products with inside-out solutions
- Among Europeans, Germans are less keen on bio-identical ingredients
- Graph 18: preference for natural ingredients grown in a lab over synthetic ones, by country, 2024
- Guide conversations about molecular size by leveraging the Dalton
- Optimise ingredient efficacy through cycle awareness
- Encourage skin cycling and curated product wardrobes among people who menstruate…
- …and consider using tech tools to support them
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LAUNCH ACTIVITY AND INNOVATION
- Mine the potential of actives beyond the skincare category
- Graph 19: % of launches containing select ingredients, by product category, 2018-24
- Anti-ageing supercharged: innovation is rife in the category
- Ingredient-first facial skincare brands venture into bodycare
- The 'skinification' of haircare: zone in on scalp solutions
- Graph 20: launches of haircare products containing ingredients with scalp care properties, 2024
- Bring marine ingredients to SBS and haircare…
- …and benefit from the sustainability credentials
- Emerging ingredients to watch: exosomes
- Emerging ingredients to watch: retinol alternatives
- Emerging ingredients to watch: biomimetic ingredients
- Graph 21: launches of BPC products with biomimetic ingredients, 2018-24
- Emerging ingredients to watch: Centella asiatica
- Emerging ingredients to watch: totarol
- Launches in neurocosmetics are slowing after an upward trend
- Graph 22: launches in neurocosmetics*, 2018-24
- Carbon neutral claims are becoming more common
- Graph 23: launches in BPC products with carbon neutral claims, 2018-24
- Advertising and marketing activity
- Shift from highlighting new ingredients and their effectiveness to underlying research systems and philosophies
- In it for the long game
- Bring AI to the forefront of communication around ingredient effectiveness
- Dermatologist endorsements can deepen the trust in ingredients
- Leverage social media for ingredient education
- Unique collaborations bring beauty ingredients into consumers' day-to-day lives
- Ethical messaging: the 'Sephora kids' dilemma
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APPENDIX
- Appendix – products covered, abbreviations, consumer research methodology and language usage
- Products covered in this Report
- Abbreviations
- Generations
- GNPD data links
- Consumer research methodology
- Infegy Atlas – coverage
- Infegy Atlas – full list of search terms used
- A note on language
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