Cosmetics retail market in Poland grew by 6.2% in 2017

More information on this topic is presented in the PMR report:

Cosmetics retail in Poland is a mature market, with numerous foreign and domestic players trading through a variety of formats. A high degree of saturation is observed especially in large cities, and consolidation is slowly gaining momentum. Nevertheless, the market still has good prospects, and is poised to grow by between 4-7% per annum in the next five years, according to a new report from PMR titled “Cosmetics retail market in Poland 2018. Market analysis and development forecasts for 2018-2023.

Cosmetics retail in Poland has changed significantly over the years, not just in terms of market structure or competitive landscape but also in terms of consumer attitudes. Poles are more aware of their needs, and more informed about the options available to them than they used to be – they have become much more conscious consumers. They like to try out new products, and they appreciate the little pleasures that cosmetics can offer. Furthermore, there is now a heightened awareness in the Polish society of issues such as skin problems or allergies, and of how they can be addressed through the use of dedicated cosmetics (among other things). As a result, the cosmetics market in Poland is developing in multiple directions, with different categories of products gaining in popularity at the same time. Thus on the one hand, we are seeing growing demand for home-grown, Polish cosmetics brands, and on the other – for cosmetics from east of the border. Similarly, cosmetics sold under retailers’ own brands are selling better and better, but so are those from the high-end segment: luxury cosmetics, specialised cosmetics and dermocosmetics.

Cosmetics stores’ leadership unassailable but discounters become second largest channel

Cosmetics stores and drugstores remain the most popular place for buying cosmetics in Poland, and their position appears unassailable, their market share increasing every year. It is the discount grocery chains, however, that have made the biggest market share gains in the last few years, reflecting their relentless store expansion and an ability to lure more and more shoppers into their stores thanks to an attractive offer, which also includes an expanding range of cosmetics. As a result, discount stores have emerged as the second largest distribution channel for cosmetics in Poland. And there is every indication that their position will continue to rise in the years ahead. The leading discount grocers Lidl and Biedronka continue to invest in the cosmetics category. Lidl, for example, took particular care to improve the presentation of cosmetics when it modernised its stores in 2017. They are now displayed on lit shelves and organised in accordance with the market segmentation, with clear descriptions. Also, men’s products are now grouped separately. Lidl also added new categories to its own-brand cosmetics range Clin. Biedronka, meanwhile, is investing more and more in promotions of the top manufacturer brands.

The share of the discount channel in cosmetics retail in Poland is poised to continue to grow also because three new foreign discounters – and non-food discounters at that – entered the Polish market in the last few months, or announced plans to do so.

One is Action of the Netherlands, which opened its first stores in Poland (in the Dolnoslaskie voivodship) in the autumn of 2017. Action’s cosmetics offer includes both manufacturer brands and own-brand products. Another is Tedi, a German chain, which could open its first stores in Poland in the second half of 2018. Tedi’s product assortment includes home decoration products, toys, electronics, fashion, and cosmetics.

The third one is Dealz, known as Poundland in the UK. The chain, which has the same owner as Pepco (Pepkor Europe), opened its first store in Poland – and in the CEE region – in early February 2018 in ETC Swarzedz shopping centre in Wielkopolskie, and plans to open 20 stores in total this year.

Body care and shower products are biggest segment but perfume sales growing fastest

Body care and bath & shower products make up the biggest segment of the cosmetics market in Poland, which is hardly surprising given the universality of their use – they are the basic cosmetic products used by people of both sexes. In 2017 this segment was responsible for almost 25% of the market. A survey carried out by PMR as part of the new report found that in the 30 days prior to being interviewed, the respondents bought three different categories of cosmetics on average, with 53% reporting having bought a shampoo, more than 40% a facial cream and a similar percentage a shower gel.

It is the perfume segment, however, that has enjoyed the fastest growth in the last years. Perfumes are the third largest category at the moment, and we expect them to climb to second place before the end of the forecast period, overtaking facial care products.

Another stand-out performer are colour cosmetics, and we see them significantly outpacing the overall cosmetics market in 2015-2018 too, with sales growth in the double-digits.


More information on this topic is presented in the PMR report:
Cosmetics retail market in Poland 2018. Market analysis and development forecasts for 2018-2023