Natural, innovative and at a good price – Polish cosmetics
The cosmetics industry in Poland has over 100 years of tradition and experience. During more than a century of operation, the industry has come a long way, combining traditional ingredients and methods with modernity and technological precision. The Polish cosmetics market is dynamic and full of innovations, and companies from Poland can confidently compete with global leaders. The strength of Polish cosmetics lies in the high quality of the products together with the interesting ideas and strategies for their promotion. Consumers on all the continents can experience this for themselves.
The Polish cosmetics market
Poland is the 6th country in Europe and the 5th in the EU in terms of the value of the cosmetics market. The sector has withstood the pandemic and is expected to grow at an average of 3% per year. Experts estimate that it will reach the value of EUR 4.5 billion as early as 2024. Its growth is also evidenced by the number of newly established cosmetics companies. In the last four years alone, the number of SMEs in the beauty industry has increased by nearly 2/3. During this time, Poland was responsible for as much as 20% of the total increase in the number of companies from the cosmetics sector in Europe.
Both new brands and companies with a long tradition are mainly involved in the production of cosmetics and toiletries for skin care and personal care. These types of products account for over 50% of the Polish cosmetics market. The skincare and personal care sector is also expected to be one of the fastest-growing areas of the industry. However, as a result of the pandemic, sales of colour and super premium cosmetics suffered the most. Despite the overall decline in retail sales of cosmetics in Poland (approx. 6% in 2020), a 7% increase in exports in the same year allowed the sector to maintain stability despite global turmoil.
Looking broadly at the Polish cosmetics market, it can also be stated that the time of growth of local producers has ended, as a result of which many small and medium-sized producers and locally recognizable brands were created. The variety of Polish products can be observed every day in stores – especially online ones. The accessibility of digital sales and online stores have enabled smaller manufacturers to reach a wide range of interested parties with their ranges of products.
Cosmetics from Poland abroad
The volume of Polish exports is about EUR 4 billion. Poland is one of the largest exporters of cosmetic products in the EU and is the only one in the EU that has not experienced significant declines in exports in recent years. European countries, with Germany at the forefront, remain the main direction for export. However, Interestingly Poland has recorded the largest increase in the value of exports outside Europe. Exports to Kazakhstan grew the fastest. Polish companies are more and more boldly looking for contractors in distant markets of Asia, the Middle East or America. Polish cosmetics are currently sold in 170 countries. The top 3 Polish export products are beautifying and skin care products, perfumes and eau de toilette, as well as toothpastes, powders and liquids for cleaning teeth. These products reach countries even as far away from Poland as Japan, Mexico and Taiwan, as well as the Republic of Korea.
Initially, Polish exporters focused on the natural ingredients of their products as their greatest advantage. Currently, however, the naturalness of cosmetics alone does not provide a sufficient competitive advantage and ceases to be the most important export asset. Positive aspects of cooperation with Polish manufacturers are competitive prices, diverse and original product ranges that fit in with global trends and the needs of customers in various markets. It is the attractive price, together with the high quality and uniqueness of the products that go hand in hand with it that are an extremely strong bargaining point for Polish manufacturers in talks with foreign business partners.
Many of the manufactures of Polish products on the shelves around the world, benefited from the support of the Polish Investment and Trade Agency, which has as one of its goals, the process of internationalizing Polish enterprises. If you want to learn more about PAIH or the cosmetics industry in Poland, we encourage you to visit the Industries and Get support tabs.
This is a shortened version of an article published in the July issue of the LOT Polish Airlines in-flight magazine Kaleidoscope.
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