Beiersdorf is predicting a slower year ahead in a “challenging” global skin care market, after reporting a modest rise in sales in 2025 driven by its derma business.
The maker of Nivea and Eucerin said net sales in its consumer business segment are expected to be “flat to slightly growing” on an organic basis in 2026, “with continued volatility and cautious consumer demand”.
The outlook came as Beiersdorf announced that organic sales across the group reached €9.9bn in 2025, up 2.4% on the previous year.
In Beiersdorf’s consumer business, organic sales grew 2.5% to €8.2bn, driven by its derma and health care divisions, which grew 11.7% and 9.3% respectively.
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The performance of the derma division, which includes Eucerin and Aquaphor, marked the division's fifth consecutive year of double-digit growth.
This was primarily driven by strong innovation, such as the Eucerin Epigenetics Serum, and the expansion of products containing its breakthrough hyperpigmentation ingredient Thiamidol regionally, including in the US and China.
All markets contributed to growth, and emerging markets served as “key drivers” in the derma business.
Sales of Nivea, Beiersdorf's largest brand, grew just 0.9%, however, and sales of luxury skin care line La Prairie were down 4.5%.
Nivea’s performance reflected “the marked slowdown in the global skin care market as well as a repositioning of the business in China”, Beiersdorf said in a statement.
After a restructuring in China was completed in Q3, Nivea returned to double-digit growth in the region in Q4, the company added.
The German beauty giant also noted that Nivea’s innovation pipeline was concentrated on the latter part of the year, resulting in innovation’s contribution to performance in 2025 “remaining limited”.
This included the launch of Nivea Cellular Epigenetics Rejuvenating Serum in September 2025, the brand’s biggest ever launch to date.
La Prairie continued to face a volatile environment in the luxury skin care segment, although positive momentum came from new product launches and the strength of e-commerce.
Repositioning the brand in China and an improved market saw La Prairie sales in the region improve sequentially, with Q4 growth of 3.8%.
Beiersdorf ‘rebalances’ Nivea portfolio to fuel growth
“2025 was a demanding year for the skin care industry, marked by slowing growth and continued market volatility,” said Vincent Warnery, CEO of Beiersdorf.
“Beiersdorf delivered solid results and once again clearly outperformed the global skin care market.
“Our derma business continued its strong momentum, driven by breakthrough innovations and targeted expansion into white spaces.
“Growth at Nivea slowed in a challenging mass-market environment.
“This is why we have initiated a focused rebalancing of the Nivea portfolio to restore momentum over time.
“With strong brands, deep skin care expertise and a clear strategic focus, Beiersdorf remains well positioned, even as market conditions remain volatile in 2026.”
Warney said in a letter to shareholders with Beiersdorf’s annual report that Nivea’s performance last year did not meet its target.
He also outlined that the rebalancing of the brand will focus on three strategic priorities: broadening the Nivea portfolio, accessible face care, and local champions.
Beiersdorf will expand its focus across face care, body care and deodorants.
Face care will remain a key priority, but with additional focus on "accessible" propositions.
“In parallel, Beiersdorf continues to rely on global innovation platforms, while giving key markets such as China, the United States, India, Japan, and Brazil greater scope to adapt portfolios and execution to local consumer needs,” the company added in a statement.
The “recalibration” will continue through 2026 and 2027 with adjustments to the innovation pipeline and marketing investments.
Beiersdorf’s 2026 outlook
Beiersdorf expects the first quarter of 2026 to come in below the full‑year range.
This is “affected by disruptions in the US retail and China travel retail landscape, as well as a lower impact from innovations at Nivea compared to the fourth quarter of 2025”, the company said in its financial statement.
“The EBIT [Earnings Before Interest and Taxes] margin from ongoing operations (excluding special factors) in the Consumer Business Segment is expected to be slightly below the prior year’s level,” the statement said.
“This is driven by raw material cost increases, unfavourable foreign exchange and only limited fixed cost leverage on gross margin, while maintaining strong marketing support.”
Warney said in his letter to shareholders that, given the current market environment, the company maintained a conservative outlook for 2026.
“At the same time, our strong derma and health care performance, our innovation pipeline, and our disciplined execution, give us a solid foundation to improve performance and deliver sustainable growth,” he said.
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