Cosmetics in Poland

A Hot Tip about Retail Sale of Pharmaceutical, Cosmetic and Toilet Articles in Poland

Posted on: 6 Apr 2010

Overview

The statistical data includes the following product categories: HS 3303 perfumes and toilet waters, HS 3304 beauty and make-up preparations, HS 3305 hair care products, HS 3307 deodorant and shaving preparations.

 

In 2008, cosmetics imports into Poland were valued at $1.28 billion, representing a 28% increase from 2007. The largest suppliers were Germany (28.3 %), France (19.4%), Spain (12.2%), Italy (7.5%), and Great Britain (7.2%). The remaining major suppliers were the Netherlands, Belgium and Sweden.7.8%). Poland’s 2008 cosmetics exports totaled $1.97 billion, a 34% increase over 2007. The top importers of Polish produced cosmetics were Russia (20%), Great Britain (12.7%), Ukraine (9.2%), Germany (8.3%), and the Netherlands (5%), followed by Romania, the Czech Republic, and Hungary (4% each).

 

The total value of local production of cosmetics in 2008 was $2 billion, representing a growth rate of 22% over 2007. In 2008, U.S. exports of cosmetics to Poland were $16.5 million, showing 36% growth over 2007.

 

Market Growth

 

The 2009 cosmetics market values were calculated based on statistical data for only the first nine months of 2009. The estimation shows a decrease in all categories caused by the worldwide economical crisis. However, economic results in the fourth quarter usually reveal a gain of 9-10% over the remaining quarters in any given year due to holiday sales.

 

After Poland’s accession to the EU on May 1, 2004, import duties for U.S. produced cosmetics were reduced from a range of 7.5% - 20% to 0%. Also, on December 1, 2006, the Ministry of Finance reduced the excise tax from 10% to 0%. The reduction of import duties and excise taxes as well as a stronger local currency should result in conditions supporting an increase in imports of cosmetics from the U.S.

 

Best Prospects/Services

The greatest market potential for the next three years is expected to be in the following areas: beauty and make-up preparations, sun-tan cosmetics, body care products. Hair care products, especially for professional users, are expected to have very good sales potential in Poland. There will also be a growing demand for healthy and ecological products not tested on animals.

 

Opportunities

In Poland there are two markets for cosmetics: the consumer market and the institutional market. The consumer market can be targeted based upon demographics such as gender, income, age, lifestyle and residential district. Suppliers must use care in making product adaptations appropriate for specific market niches. The institutional market consists of professional beauty and hair care salons. Owners purchase goods from wholesalers and foreign representatives in Poland or sometimes import products themselves. Research indicates the majority of cosmetics used in those salons come from foreign producers.

 

The most important competitive factor for selling cosmetics in Poland is price. Also important are product quality, packaging, advertising and promotion, and strong local recognition and reputation of the firm and its products. Despite the strong position of European suppliers, there are still excellent prospects for American products, which are regarded as the highest quality.

 

 

Read the full market research report

 


Posted: 06 April 2010

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