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PMR Insight: Good prospects for the cosmetics market in Poland


2013-08-22

According to PMR’s estimates, the cosmetics market in Poland exceeded PLN 19bn (€4.7bn) in 2012, which represents an increase of more than 3% y-o-y. We expect that the market will continue to grow steadily, though at a slower pace than before the crisis, helped by consumer attitudes and further expansion of the leading cosmetics chains.

First, a PMR survey conducted in January 2013 shows that despite the crisis, consumers have not reduced their spending on cosmetics . More than 50% of the respondents declared that they had not cut back their expenditures on cosmetics goods in 2012, while about 40% said they had spent more in comparison to 2011, with only 9% admitting that they spent less. The average monthly spending on cosmetics per capita is PLN 92 (€22), according to PMR research.

Apart from consumers’ resilient willingness to spend on cosmetics, another driving force for the market is the continued expansion of cosmetics chains, whose owners see huge potential in the Polish market. By way of example, Rossmann, the leading drugstore chain in Poland, plans to add about 600 new stores to its current network of 730 in the next five years. Another chain, Super-Pharm, has plans to open 8-10 new units annually. Also Dayli will develop its chain in Poland – it has recently increased its opening target for 2013 to 60 new stores. And Jeronimo Martins (JM), the operator of Biedronka discount chain and Hebe drugstores, will focus on the development of the cosmetics part of the business after 2015. Hebe, which now comprises 40 establishments, may then become the fastest growing cosmetics chain in Poland.

Other distribution channels that may have a positive impact on the cosmetics market as a whole are discount chains as well as the online channel. Grocery discount stores are gaining in popularity – not only are they quickly increasing their store networks, but they are also attracting more and more buyers. Discount stores, which are known as shops with low prices and improving product quality (including private labels) reported double-digit growth in both general revenue and sales of cosmetics products, driven by costly promotional campaigns (Biedronka and Lidl are the food retailers with the highest advertising spending).

The online distribution channel is expanding in line with rising numbers of households with broadband access, and with steady growth in the number of internet users who buy online and appreciate this kind of shopping experience because it is convenient, saves time and gives access to lower prices.

Value of the cosmetics market in Poland (%), by distribution channel, 2012

For more information about the cosmetics market in Poland see the PMR report “Retail market of cosmetics in Poland 2013”.



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PMR is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern Europe as well as other emerging markets. PMR key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). With over fourteen years of experience, high international standards in projects and publications, highly skilled multilingual staff and a wide network of co-operating research companies and market experts, PMR is one of the largest companies of its type in the region.