The Spanish economy and its importance for Polish exporters

Spain is the 14th largest economy in the world and the fifth largest in Europe, with a GDP of around €1.5 trillion and a population of almost 50 million inhabitants. Thus, it is a market with high purchasing power, creating attractive opportunities for Polish companies.

The Spanish economy is mainly driven by services (about 67 per cent of its GDP), industry (about 23 per cent) and agriculture (about 4 per cent). The country is one of the largest consumers in Europe and at the same time one of the most significant importers on the continent. In 2024, both exports from Poland to Spain and imports from Spain to Poland increased, which proves the growing importance of this market for Polish companies.

Trade  between Poland and Spain – growing dynamics

According to data from GUS  for 2024, Spain is Poland’s ninth economic partner in terms of the value of exports, which amounted to EUR 10.2 billion, which accounted for 29 percent of all exports to southern European countries. Imports from Spain (by country of origin) reached EUR 7.8 billion, placing Spain in 10th place among Poland’s most important contractors.

Source: Export Intelligence according to the Central Statistical Office

Since 2012,  trade balance between Poland and Spain has remained positive, which means that Poland exports more than it imports. In 2023, Spain was also the fifth largest foreign investor in Poland. At the same time, Polish companies are entering the Spanish market more and more boldly.

Industries with the greatest export potential

Among the sectors with the greatest potential for the expansion of Polish companies in Spain are:

• IT industry and digital technologies – Poland is one of the leaders in IT outsourcing in Europe, and Spanish companies are increasingly using the services of Polish technology companies;
• pharma and biotechnology – Poland is one of the leading manufacturers of generic drugs in Europe (EUR 207.19 million in 2024);
• cosmetics – the Spanish cosmetics market values natural and ecological products, which is an opportunity for Polish manufacturers offering organic cosmetics;
•  the automotive industry – Poland is an important supplier of automotive parts and components. Spain, as one of the largest car manufacturers in Europe, is eager to import high-quality products from Poland (EUR 1.625 billion in 2024);
• construction chemicals – Polish construction chemicals, including paints, adhesives and finishing materials, are appreciated in Spain;
•  the food industry – the Spanish market appreciates Polish dairy products, meat , fruit and vegetable products, which are gaining more and more popularity (EUR 1.150 billion in 2024).

Challenges for Polish exporters

Despite the numerous opportunities, expansion into the Spanish market also comes with challenges, the most important of which are:

• preferences of local consumers – Spaniards often prefer domestic products, so it is crucial to build a brand and convince consumers of the quality of Polish products;
• business culture – Spanish companies place great emphasis on building long-term relationships, which is an important element of cooperation;
• language barriers – knowledge of Spanish is often necessary to run a business successfully, as many Spaniards are not fluent in English;
• Regulations – The legal system in Spain is complex and varies from region to region, so the support of a local legal advisor may be necessary.
• transport costs – Spain is a remote market and logistics costs can be high, especially for goods that require special transport conditions.

Strategies for successfully entering the Spanish market

To successfully establish a presence in the Spanish market, it is worth using strategies such as market analysis, tailoring the offer, building a network of local partners, developing a marketing strategy and participating in industry events. Employees of the Foreign Trade Office of the Polish Investment and Trade Agency (PAIH)  can be helpful in these aspects, and you can contact them via a form.

In mid-February, the Spanish-Polish Business Forum was held in Warsaw, during which representatives of the private sector and Government institutions discussed ways to develop economic cooperation. The Forum was organized by ICEX Spain Trade and Investment and the Spanish Embassy  in Poland, and co-organized by PAIH.

We invite you to follow  the events in our calendar

Source:

• Export Intelligence
• Central Statistical Office (GUS)
• The Polish Investment and Trade Agency (PAIH)