High costs, a deficit in the production of cosmetics in Hungary are an opportunity for Polish companies

The relatively low production capacity of the cosmetics industry in Hungary and the pan-European increase in production costs, which may affect more countries where the industry is less developed, is an opportunity for Polish cosmetics companies, says Marcin Karaskiewicz, head of the Foreign Trade Office of the Polish Investment and Trade Agency in an interview with ISBnews. (PAIH) in Budapest.

Currently, the export of Polish cosmetics to Hungary records a steady growth of up to 10% y / y.

“Due to the relatively low production capacity of the domestic cosmetics industry, Hungary experiences a greater deficit in foreign trade in the category of care products every year. For several years now, companies from Germany, France and Polish producers have been trying to satisfy the demand for cosmetics, ”said ISBnews Karaskiewicz.

“On the other hand, exports of Polish cosmetics to Hungary record a stable, high growth of up to 10% y / y. Given the disruptions in the supply chains of certain raw materials, the rise in energy and packaging prices, the production costs of the cosmetics industry in the EU could increase by up to 30%. Countries whose cosmetics industry is underdeveloped and dependent on foreign suppliers may be particularly susceptible to price fluctuations and shortages of raw materials, ”he added.

He indicated that in this field Polish companies with practically unlimited production possibilities (from formula development, through production, ending with packaging) may become an even more attractive partner for Hungarian distributors.

PAIH is an advisory institution that is part of the Polish Development Fund Group (PFR). The mission of PAIH is to increase the inflow of foreign direct investments to the country and the range and dynamics of internationalization of Polish enterprises as well as the implementation of Polish investments in the country. It strengthens the recognition of Polish brands on international markets, promotes domestic products and services as well as technological solutions made in Poland.

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