Nordic beauty, known for sustainability and minimalism, faces low brand awareness in the German market. However, the growing demand for ethical, natural products by consumers presents an opportunity. Success requires strategic positioning, digital innovation, and transparent communication to build trust and expand beyond niche status.

Authors: Sini Leskinen & Taina Orpana

Nordic Beauty

Nordic beauty refers to premium beauty products meticulously crafted in Finland. These offerings combine the purity of natural ingredients with innovative techniques, establishing a benchmark for excellence in skincare. Nordic beauty is often characterized by its commitment to sustainability, minimalism, and eco-consciousness.

One of the significant challenges Nordic beauty brands encounter is the low brand awareness of their products among German consumers, who tend to favor well-known global brands. As Chevalier and Mazzalovo (2012) emphasized, this underscores the critical importance of strategic brand positioning and building consumer trust, which are essential components for success in competitive markets.

Exploring German beauty markets

Germany, recognized as the largest beauty market in Europe, exhibits a robust demand for sustainable products. The country boasts a well-developed retail infrastructure, encompassing both physical stores and e-commerce platforms that enable broad product distribution and accessibility. Notable players in this market include Beiersdorf AG, L’Oréal S.A., Coty Inc., Procter & Gamble, and Douglas GmbH, all of which significantly contribute to market innovation, brand influence, and product distribution (Expert Market Research).

Consumer awareness in Germany is high, with a growing demand for ethically sourced and transparent brands (Figure 1). Environmental and ethical considerations have become increasingly influential in the purchasing decision process. German consumers prioritize brands that offer natural ingredients, transparent sourcing practices, and eco-friendly packaging (Statista 2024).

The European market indicates that Germany is the largest consumer of cosmetic products, followed by France and Italy in second and third place, respectively. The UK and Spain are also growing in this sector, but they still have a significant gap compared to Germany. Currently, Poland ranks sixth, while other markets are considerably smaller.

Figure 1. European market for cosmetic products in 2023 (Cosmetics Europe 2024)

German consumers demand sustainability and ethical choices

As demand for sustainable and ethical beauty products continues to rise, Nordic Beauty has a significant opportunity to carve out its niche in the market. It is essential to tailor products to local preferences, invest in digital innovation, and effectively communicate brand values to stand out. Consumers are searching for more than just one product; they seek options that align with their values. The beauty industry is evolving to become more inclusive, personal, and authentic. (Mendl 2020.)

The German beauty and personal care market is projected to reach USD 19.72 billion by 2025 and is anticipated to grow to USD 23.98 billion by 2030. (MordorIntelligence 2024.) According to Statista (2024), the market is expected to have an estimated annual growth rate of 1.94% in 2025 (Figure 2). Additionally, there is a noticeable shift towards natural, organic, and vegan beauty products, reflecting a growing consumer preference for sustainable and ethical choices. (Statista 2024.)

The German market is split into two main segments: beauty and personal care products. Personal care products account for over 80% of the total market, while beauty products constitute just under 20%.

Figure 2. Germany’s beauty and personal care products market (Mordod Intelligence 2024)

Key Strategies for Success

To successfully establish a presence in the competitive German beauty market, Nordic beauty brands must prioritize key strategies that align with the core values of sustainability, transparency, and digital innovation. As outlined by Chevalier and Mazzalovo (2012), a brand’s authenticity and connection to its origins are vital for fostering consumer trust. For Nordic beauty brands, effectively communicating their regional identity and ethical principles goes beyond mere storytelling; it represents a strategic advantage in competitive landscapes.

Nordic beauty brands must articulate their value proposition with clarity and effectiveness. Strong communication, targeted marketing, and localization are essential for cultivating consumer loyalty and enhancing brand recognition. This approach includes authentic storytelling and tailored messaging directed at specific segments. Strategic partnerships can further accelerate growth, emphasizing sustainability and building trust within target markets. Collaborating with German influencers, beauty retailers, and sustainability platforms can help amplify the Nordic value message and enhance brand visibility.

Given the rise of e-commerce and digital advancements, Nordic beauty brands must capitalize on digital innovation to deliver personalized consumer experiences. Brands should focus on creating customized online interactions by leveraging artificial intelligence (AI) and machine learning to recommend products suited to individual preferences (Mendl 2020).

Market Changes and Opportunities

The German beauty market is evolving, creating opportunities for Nordic beauty brands. Increasing consumer interest in sustainability and ethical consumption is opening the door for brands that offer clean, sustainable, and natural products. Digitalization has transformed marketing channels, with consumers increasingly influenced by social media and online shopping. Brands that communicate authentically and transparently can quickly build trust, making strategic brand positioning and differentiation essential for success. These market changes, driven by social and environmental concerns, position Nordic beauty brands as attractive options for German consumers seeking responsible and transparent alternatives. Factors such as digitalization, consumer awareness, transparency, corporate social responsibility (CSR), and sustainability are driving competition and are key to differentiation and innovation. To succeed, businesses must focus on brand management, research, and a consumer-centered approach to secure a leading market position. Without these efforts, a brand risks becoming commoditized and losing its competitive edge (Keller 2012).

Leskinen (2025) studied consumers current knowledge of Nordic beauty products. Online survey was conducted in April 2025 with 83 female consumers in Germany aged 18 to 40. Results indicate that while current awareness of Nordic beauty remains limited, its core values of sustainability, simplicity, and ethical production align strongly with emerging consumer expectations. The survey provided valuable insights into consumer preferences, highlighting a growing demand for natural, ethical, and innovative beauty solutions. The German beauty market is full of opportunities, especially for brands that effectively utilize innovation, offer personalized customer experiences, and communicate their values. With the right strategies, Nordic beauty has significant potential to evolve from a niche market to a global megatrend. Ultimately, the path forward lies in proactive adaptation, strategic foresight, and a commitment to the values defining Nordic beauty (Leskinen 2025)

References

Chevalier, M. & Mazzalovo, G. 2012. Luxury brand management. A world of privilege. 2nd edition. Cited 12 May 2025. Available at https://doi.org/10.1002/9781119199168

Cosmetic Industry. 2024. Cosmetics Europe. Cited 5 May 2025. Available at https://cosmeticseurope.eu/cosmetics-industry/

Keller, K. 2012. Strategic Brand Management: Building, Measuring, and Managing Brand Equity (4th ed.). Pearson Education.

Leskinen, S. 2025. Nordic Beauty as a megatrend, future scenarios. Master’s Thesis. LAB University of Applied Sciences, Business Innovation Culture and Creativity. Cited 19 May 2025. Available at https://urn.fi/URN:NBN:fi:amk-202505079564

Mendl, N. 2020. 5 Megatrends to closely follow up in the Beauty industry. Medium. Cited 5 May 2025. Available at https://medium.com/@nataliamendl/5-megatrends-to-closely-follow-up-in-the-beauty-industry-ded56b06f8f0

Mordor Intelligence. 2024.  German cosmetic market size & share analysis – growth trends & forecasts (2025-2030). Cited 5 May 2025. Available at https://www.mordorintelligence.com/industry-reports/germany-cosmetics-products-market-industry

Statista. 2024. Cosmetics – Germany. Cited 5 May 2025. Available at https://www.statista.com/outlook/cmo/beauty-personal-care/cosmetics/germany

Authors

Sini Leskinen is a Master of Business Administration student at LAB University of Applied Sciences. The blog is based on her thesis, which explores the potential futures of Nordic Beauty in the German market.

Taina Orpana is a Senior Lecturer in Business at LAB University of Applied Sciences, guiding the thesis work and inspiring the next generation of thinkers and leaders.

Illustration: https://pxhere.com/en/photo/628677 (CC0)

Reference to this article

Leskinen, S. & Orpana, T. 2025. Rise of Nordic Beauty: A Strategic Outlook on Its Future in the German Market. LAB Pro. Cited and date of citation. Available at https://www.labopen.fi/lab-pro/rise-of-nordic-beauty-a-strategic-outlook-on-its-future-in-the-german-market/