The Polish cosmetics industry is the leader of growth in the EU

The Polish cosmetics industry has come a long way – from a sector that produces mainly for the domestic market to one of the most competitive exporters in Europe. The report of the Polish Cosmetics Industry Association on the state of the cosmetics industry 2025 clearly shows that it is export that is the foundation of Poland’s cosmetics power today.

A dozen or so years ago, the Polish cosmetics market was primarily a consumer market – production was mainly  for domestic sales, and demand depended on the purchasing power of Poles. At that time, exports were only an add-on.

Currently, the domestic cosmetics sector is one of the most dynamically developing industries in Poland and the entire European Union.

Poland is the fastest growing cosmetics market in the EU

The year 2024 brought an exceptional result for the Polish industry – a 16.8 percent increase in market value, the highest in the entire EU. This means a pace almost twice as fast as the European average (8.5 percent). Poland overtook Bulgaria, Hungary, Germany, France and Spain,  to become the fastest growing cosmetics market in Europe.

The dynamic growthis the result of, among other things: the growing purchasing power of Polish consumers, the increase in spending on everyday goods, strengthening domestic demand and record export results.

Today, Poland is the fifth largest cosmetics market in the EU, with a share of 6.6 percent. Since joining the EU, the value of the market has almost tripled, and over the last decade –  grown by 98 percent.

Record exports and Polish competitive advantages

In 2024, exports of Polish cosmetics reached a record EUR 6.0 billion. Poland ranks 9th in the world and 5th in the EU in terms of the value of cosmetics exports. The value of exports exceeds imports by EUR 2.3 billion, which makes Poland a beneficiary of the cosmetics trade.

Poland has a strong position, especially in the segments of everyday cosmetics. Among the EU countries, it occupies:

• 2nd place in exports of oral and dental hygiene products (16.4% of the EU’s share)
• 3rd place in the export of cosmetic soap (14.7 per cent)
• 4th place in exports of care cosmetics and manicure/pedicure products (8.3 percent)
• 4th place in exports of shaving cosmetics, deodorants and bath gels (11.4 percent)
• 7th place in exports of hair care products (7.3 percent)
• 7th place in perfume and eau de toilette exports (3.4 per cent)

67 percent of our exports go to EU countries, and the largest recipients are: Germany (22.2 percent), the Czech Republic (6.8 percent), France (5.4 percent), Belgium (4.6 percent), Ukraine (4.2 percent) and the Netherlands (4 percent).

Among the non-EU markets, the largest recipients are the United Kingdom (8.4 percent) and Russia (4.9 percent).

Poland, diversifying its sales directions, is increasingly reaching Asia, the Middle East and Latin America.

The structure of exports is dominated by: skin care products, manicure and pedicure products (42 percent), cosmetic soaps (14 percent), deodorants and shower preparations (13 percent), perfumes and eau de toilette (11 percent), hair cosmetics (11 percent) and oral hygiene products (9 percent).

Poland is characterized by export specialization exceeding the EU and global averages in the following segments: cosmetic soap, deodorants, bath products and oral hygiene products.

Industry profitability

The cosmetics industry is distinguished by its consistently high profitability. The average net margin in 2013–2024 was 8.1 percent, while in the entire processing industry it was only 4.5 percent.

The sources of advantages are: strong domestic brands and a long value chain under the control of manufacturers, high barriers to entry, a significant share of exports, a favourable exchange rate, low energy intensity of production (1.4 per cent of costs).

In 2023, the industry achieved a record net profit of PLN 1.7 billion. In 2024, there was a return to normal levels – PLN 806 million – mainly due to a decline in inflation and fewer opportunities for price increases.

Poland in the European value chain

The Polish sector is responsible for 5.5 percent of the gross value added of the European cosmetics market (VAB – Value Added). In the EU structure: production (3.9%), distribution (6.0%), sales (7.6%).

Domestic market and production – export facilities

There are 1,320 cosmetics manufacturers in Poland, of which 91 percent are micro-enterprises. The industry directly employs about 20 thousand people, which is almost 10 percent of all employment in the European cosmetics industry.

Domestic capital dominates : 74 percent of companies  have a predominance of Polish capital, and these  are responsible for 45 percent of revenues and generate 65 percent of the sector’s net profit.

Although the industry shows a high capacity for self-financing, the level of investment remains moderate – PLN 4 billion in the years 2013–2024.

National sales structure

In 2024, the largest part of the market was made up of: care cosmetics (45.9 percent), shampoos (11.3 percent), eau de toilette (10.2 percent), soaps and skin wash products (8.4 percent) and hair styling and care cosmetics (8.1 percent). A total of five main categories are already responsible for 84 percent of all cosmetics sales in Poland.

The dynamic manicure/pedicure segment also stands out from the EU (4.7 percent of sales compared to the EU average of 1.6 percent).

Challenges for the sector

Despite its huge successes, the industry faces several major challenges:

1. fluctuations in the EUR/PLN exchange rate (the appreciation of the zloty may reduce the price competitiveness of Polish cosmetics on foreign markets),
2. rising costs of labour, raw materials and energy (companies may reduce margins, especially if inflation and cost pressures return),
3. low expenditure on research and development (R+D) (Polish companies invest in fixed assets, but less often in product or process innovations, which limits the potential for the development of premium brands and niche products),
4. international competition and trade barriers,
5. high dependence on EU markets (although diversification is increasing, 67% of exports still go to the EU).

Further development requires not only maintaining cost advantages, but also investing in quality, innovation and diversification.

Outlook until 2030

If Polish companies maintain their advantages, invest in quality and innovation, and at the same time respond to the changing realities of global trade, exports will remain the surest path to development for them. The forecasts for the industry are definitely positive.

This industry has a chance not only to maintain its current position, but also to significantly strengthen it if: it expands its expansion into non-EU markets (Asia, Americas, the Middle East), expands the share of e-commerce, which reached 17.3 percent in 2024, develops the premium and private label segment, strengthens investments in R+D and automation (which will maintain price and quality competitiveness), strengthens logistics and distribution chains.

Source: The  Polish Association of the Cosmetics Industry, “Kosmetyczna Polska” A report on the State of the Cosmetics Industry 2025, 10.2025

Translated by IDC

JL