Warning: count(): Parameter must be an array or an object that implements Countable in /home/biznesp2/public_html/wp-includes/post-template.php on line 284

Poland’s cosmetic industry worth $4.30 billion; one of the biggest in EU

Known for its rich and eventful history, colorful heritage, delicious cuisine and a wide selection of fantastic places ready for exploration, Poland is dubbed a must-visit destination by travel lovers. It has become a country frequently visited by tourists and draws millions from around the world each year. However, the central European nation has now started making a name for itself in another industry, namely the global beauty market. It has been seeing its cosmetics industry flourish continuously for several years, making it one of the largest cosmetics players in Europe. Products of a number of Poland-based companies can be found on shelves around the world.

Invited by the Polish Investment and Trade Agency (PAIH), we were in Poland with international cosmetics business and media delegates from a number of countries, including Turkey, Hong Kong, Indonesia, China and the United Arab Emirates (UAE), on a study tour to see and examine the dynamics of the Polish beauty market.

PAIH is known for its works to increase the inflow of investments to Poland and the outflow of Polish foreign direct investment, in addition to working to intensify Polish exports.

During the three-day tour in March, participants had the opportunity to meet officials and visit companies, their headquarters as well as research and development (R&D) centers operating in the cosmetics industry. They also attended the Beauty Forum, which was held in Warsaw on Marh 9-10.

Poland is the sixth-largest cosmetics market in Europe with approximately 100 large and medium-sized and over 300 small and very small manufacturers of cosmetics. It will move to the fifth place once the U.K. parts company with the EU.

Poland: An ambitious player making a name in the cosmetics industry

It now attaches special importance to the cosmetics industry where it sees itself as an important player, having many independent laboratories and research facilities carrying out various research on new products and improving existing ones.

The current value of the market stands at around 3.85 billion euros ($4.30 billion), according to report prepared by the PAIH, which also projects the value to increase to 4.82 billion euros in 2021.

Naming the Polish cosmetics sector as having the most dynamic real growth in Europe, growing at a pace of 2 percent per year over the last 15 years, while the major cosmetics markets recorded a decline, PAIH forecasts that the country’s cosmetic sector will grow by 4-5 percent in the coming years.

TURKEY THIRD-BIGGEST EXPORT MARKET

Poland has seen exports of its cosmetics products skyrocket by 300 percent over the last 12 years, currently standing at 2.85 billion euros, 1.5 percent of total Polish foreign sales.

Within the scope of the study tour, we came together with the officials of Polish Association of Cosmetics and Detergents, which has around 123 member companies, including renowned producers and distributors, as well as retail chains, suppliers of raw materials and other companies operating in the cosmetics and detergent industries.

According to the information provided by the association, over 43,000 people are currently employed in the cosmetics industry, whose production is mainly settled in the southern part of the country.

During our meeting, Anna Oborska, the head of the association, told us that 50 percent of the production is being exported, 30 percent of which is going outside the Europe, and is being sold to 160 countries around the world. She noted foreign sales have an average rise of 5 percent each year.

In her address, Oborska informed that Turkey was Poland’s third-biggest cosmetics export market among non-EU countries, right after Russia and Ukraine. Accordingly, cosmetics exports to Turkey amounted to some 77.2 million euros in 2017, while average annual sales between 2008 and 2017 totaled 72.9 million euros.

Our privacy policy
%d bloggers like this: