Market News

Further growth in cosmetics trade

The Polish cosmetics market is a mature market, where many foreign and Polish players operate, offering a variety of formats. Despite slow consolidation and high saturation of the market, especially in large cities, it is still a prospective market, which is related, among other things, to the improving material situation of Poles, as well as changes in habits regarding the greater use of cosmetics, especially those from the middle and higher price brackets.

Economic growth remained strong last year, driven mainly by strong domestic demand. Apart from growing investments supported by the growing absorption of EU funds, the key determinant of development remained the consumption of households. Record low (and still falling) unemployment, strong wage growth (supported by a growing imbalance between labour supply and demand) and the income of the population, as well as a favourable macroeconomic environment, have had a positive impact on household optimism, reflecting their increased willingness to consume. As a result, private consumption growth remained strong, although it slowed down slightly compared to 2017. (as a result of, among other things, the effect of a high base and the expiry of the impulse in the form of the introduction of the Family 500+ programme).

Relatively low inflation (below 2%) had a positive impact on the disposable income of households. Although energy commodity prices increased significantly (compared to 2017), still quite slowly rising prices in the euro area and the slowdown in food prices have stabilised inflation. As a result, it was a good time for the cosmetics retail trade. The market grew by 3.7% in 2018 and will grow by a total of 19% between 2018 and 2024.

Over the years, not only the market has changed (structure, shares, players), but also the approach to At present, Poles are becoming more and more aware of their own needs and the products offered to them. For as many as 59% of respondents it is important or very important to get acquainted with the composition of the cosmetic. This issue is more often pointed out by women than men (62% vs. 51%). The percentage of people for whom the composition of cosmetics is important or very important is the highest among people over 54 years old (70%). Persons aged 55 and over often indicated similarly the high importance of shopping for cosmetics in larger or glass environmentally friendly packaging (69%) and shopping for cosmetics of Polish brands (68%). Awareness of the country of origin of a given cosmetic is the most important for people aged 55 and over (58% vs. 40% among people up to 40 years old). Women more often than men are willing to pay more for a cosmetic made of natural ingredients (58% vs. 51% among men).

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