Henkel Consumer Sales Decline 3.5% in Q1 as US Demand for Personal Care Products Weakens

THE WHAT?  Henkel has reported a 3.5% decline in Q1 2025 sales for its consumer brands division, citing weak US demand for personal care and laundry products.

THE DETAILS  The German manufacturer, whose personal care portfolio includes Schwarzkopf and Dial, saw group-wide sales drop 1.0% year-on-year to €5.24 billion in Q1. Within its consumer brands segment—which includes both personal and home care—sales fell to €2.48 billion, impacted primarily by softness in the laundry care category.

North American sales, which accounted for 28% of Henkel’s total revenue in 2024, declined 3.4% organically to €1.43 billion. The company pointed to deteriorating consumer sentiment in the region, attributing some of the pressure to US policy decisions and ongoing tariff volatility. Henkel said it remains committed to its 2025 outlook and is continuing to streamline its personal care portfolio. Since 2022, the group has divested or discontinued more than €1 billion worth of brands, including a recent sale of its North American retailer brands business.

THE WHY? The results reflect ongoing pressure in the personal care sector from inflation-sensitive consumers, particularly in North America. As spending in core categories like hair and body care slows, Henkel is under pressure to optimise its offering and divest non-strategic assets. The company’s performance highlights broader challenges for multinational beauty and hygiene brands balancing portfolio rationalisation with growth in uncertain macroeconomic conditions.

Source: Reuters

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