Polish cosmetics have great power that is appreciated in the world. Slavic B2Beauty commences!
The business meetings of the two parties - entrepreneurs from 20 countries and 32 exhibitors from Poland, Lithuania and the Czech Republic, continue on Tuesday and Wednesday, June 21 and 22. They all prosper for target, foreign markets.
- The global cosmetics market is value at approximately EUR 544 billion, and Polish companies enjoy an increasing share. This industry has a bright future. The expansion area for domestic brands is even more significant; I hope that Slavic B2Beauty will contribute to the acquisition of new sales opportunities - emphasised the president of the board of Targi Kielce, Andrzej Mochoń PhD.
The Polish cosmetics market is in an excellent shape
- The Polish cosmetics industry abounds with advantages; the benefits plethora include diversity, diversification and local character. Also, people with knowledge, know-how, experience, innovativeness, creative thinking and businesses-creating skills are the distinguishing feature. All this translates into quality - said Lidia Lukowska, director of Communication and Organization Development at the Polish Union of the Cosmetics Industry.
The value of the Polish market is EUR 4.3 billion. - Compared to European countries, Poland ranks sixth in this respect; it is also the undisputed leader when it comes to the average annual growth. The 2014 - 2020 period produced 4 percent growth. We come away unscathed from the pandemic, the companies went through the covid crisis - she explained.
In 2021 reported an eight per cent increase. According to Euromonitor forecasts, 2022 will result in an extra 3 per cent. - The cosmetics sector, even after the pandemic, is in very good shape - emphasised Lidia Lukowska.
A strong position for domestic brands
Interestingly, Polish Small and Medium-sized Enterprises occupy the largest martke share in Poland, which is a European scale phenomenon. - Every fifth SME company operating in Europe was established in Poland. The share of companies with Polish capital increased by 18 percentage points in the years 2013-2022. SME account for 41 per cent of the revenues in the cosmetics sector - explained the Director for Communication and Organization Development at the Polish Union of the Cosmetics Industry.
Polish cosmetic and pharmaceutical products are selling like hot cakes. In the pharmacy market, domestic brands occupy come first and secon in the ranking of the units sold. In terms of financial value, they are on the podium behind the global giants, i.e. L'Oreal. The most popular are face care products, colour cosmetics, and eye make-up cosmetics.
The export of domestic cosmetics offers excellent prospects, with an estimated value of EUR 3.3 billion in 2020. We have a 3% share in world exports, and we are in the fourteenth, which is a strong position right after Italy. Poland is the fifth largest exporter in Europe. In 2020 the ratio was five per cent, which is a good result during a pandemic compared to other countries. In 2017 it was 12 per cent - the expert explained.
As she pointed out, the trade balance for 2019 is very good. The exports to imports ratio was 38 per cent. - Every other cosmetic from Poland is exported, with Germany, Great Britain, Russia, the Czech Republic, Belgium, France, Kazakhstan, Ukraine, Italy, the Netherlands - being the main target markets - she explained.
Prospering for export opportunities at Slavic B2Beauty
Lidia Lukowska emphasised that the war in the East had altered the whole situation; business owners withdrew from Russia, which was an informed decision. They still support Ukraine, but Ukraine’s is a much smaller market. Furthermore, there were problems related to the supply chain, i.e. shortages of certain raw materials.
- We have to look for new export markets, so we are happy to have Slavic B2Beauty, and we look forward to fruitful talks - she emphasised.
Superpowers of the Polish cosmetics industry
Among the great powers of the Polish cosmetics industry, she mentioned primarily the geopolitical location between the East and the West, which favours business contacts. She also noted that the hundred years of experience have resulted in high-level production capacities as well as highly qualified staff.
- Poland offers a complementary offer with laboratories, packaging, producers and distributors of raw materials. The entire production process of cosmetics is exorbitant, which makes Polish cosmetics a top-quality assortment- she emphasised.