#The Power of Beauty Cosmetics market in Poland on the threshold of 2021 - Brand590.
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#The Power of Beauty Cosmetics market in Poland on the threshold of 2021
Key figures
the number of markets where the percentage of women the number of cosmetics producers
Polish cosmetics are present worldwide among the industry employees and distributors in Poland
th
billion
Poland is the 5th largest the value (in Euro) of cosmetics the percentage of Poles who
cosmetics market in the EU sales in Poland declare they buy cosmetics online
Table of contents
Chapter I # The Power of Polish Beauty - the idea of promoting Polish cosmetics abroad 4
Chapter II # The Power of Tradition - global brands with Polish roots and the development of cosmetics business 5-8
Chapter III # The Power of Competition - how to find your way in the competitive thicket? 9-17
Chapter IV # The Power of Trends - Polish cosmetics in line with global beauty trends 18-23
Chapter V # The Power of Experience and Young Energy - generational change, succession and start-ups 24-26
Chapter VI # The Power of Social Media - how Polish Beauty captures imagination and emotions? 27-28
Chapter VII # The Power of Women - industry leaders who shape the beauty market not only in Poland 29-31
Chapter VIII # The Power of Identity - what distinguishes Polish cosmetics and how do they win over consumers around the world? 32-35
Chapter IX # The Power of Expansion - growing Export of Polish Cosmetics 36-39
Chapter X # The Power of the Polish Brand - investing in the Image of Polish Beauty 40-41
3
Chapter I
# The Power of Polish Beauty
Polish cosmetics can be found on over 170 markets worldwide. Many consumers have
already had a Polish product in their hands, not always confidently knowing that they
have reached for a cosmetic "Made in Poland" - although for some reason it was this one
- out of dozens of others - that attracted their attention. On the other hand, more and
more Polish brands have their dedicated and loyal fans in various parts of the world.
Their choices are less random - they buy cosmetics based on liking and trust in the
brand. In social media, one can easily find reviews, posts and videos marked with the ha-
shtags of Polish cosmetic brands posted by internet users from Asia to the Americas...
From the perspective of individual companies, each such publication devoted to their
brands is worth its weight in gold. It broadens their reach, increases brand recognition,
and allows them to better understand the perspective and expectations of consumers
from different geographical areas and representing different cultures.
All this is extremely important and valuable. After all, everyone is playing to their own
ends in the marketplace. Each exporter makes efforts to reach selected markets and There are several industries in which Polish companies have a high level of expertise and
strengthen its position there. This of course makes business sense, but it seems to be in trust among clients all over the world. We are famous for producing high-class yachts or
the interest of the whole Polish cosmetics industry that "Polish cosmetics" as a slogan computer games, with the global hit "The Witcher" at the forefront. It is worth making
should be present in the broader consciousness and carry the positive connotations it efforts for the world to see the strength of PL-Beauty: perfect quality cosmetics, perfec-
deserves. tly reaching to consumers' hearts and emotions. They are innovative, very up-to-date in
the world of current trends. They are distinguished by attractive design, respect for pro-
Not without reason is the Polish cosmetics industry called the most beautiful showcase -ecological solutions, innovation and effectiveness. We do not have the slightest reason
of the Polish economy. Polish companies create attractive, high quality cosmetics in line to be complex and we can confidently compete in quality with the market leaders!
with the latest trends and technologies, which can compete with the products of market
giants without complexes. Poland has succeeded in this. Here the position of Polish Experts professionally involved in the cosmetics industry know very well that high quali-
brands against the world's competition is truly impressive. This success can be transfer- ty stands behind the slogan Polish Beauty. Now it is time to promote this idea among
red further. consumers - on a really large scale!
4
Chapter II
began selling eye shadow and eyebrow pencils. Four years later, he introduced a full
range of cosmetics, giving the line the name "make-up" - a term that entered the global
cosmetic language for good. In 1929, he won the first Oscar in cinema history for make-
# The Power of Tradition
-up. By 1930, Max Factor was exporting its products to 80 countries. Factor's great
career was cut short by his sudden death in a car accident in 1938.
• Born in 1863 in Gliwice, Silesia, Dr. Oscar Troplowitz began his professional career
as a pharmacist in Poznan. In 1890, he bought the declining pharmaceutical factory of
Carl Beiersdorf in Hamburg. He developed it into the large cosmetics company "Beiers-
dorf & Co". When he took it over there were 11 employees and in 1914 the number of
The story of #PolishBeauty is strongly rooted in Polish tradition. It is here, in spite of employees was over 500! On the eve of the outbreak of World War I, Beiersdorf was
many historical turmoils, at the meeting point of East and West, where numerous co- selling its products in 29 countries on 4 continents. Barely three years after the intro-
smetic companies have always been established and where people who gave birth to duction of Nivea cream, the cosmetic became a real bestseller and was available in 34
world beauty empires were born. countries. Troplowitz went down in history not only as the founder of a cosmetics
empire, but also as an entrepreneur who cared about the social rights of workers. Oscar
Polish roots in the global history of beauty Troplowitz died in 1918.
• The first ever alcohol-based perfume - "Queen of Hungary's Water" - was created
in the 14th century by Elisabeth, daughter of the Polish king Władysław Łokietek, who
sat on the throne of Hungary for almost 60 years;
• Born in 1870 into a family of Krakow Jews, Helena Rubinstein created a real cosme-
tics empire, and business-wise she was most driven by... competition with Elisabeth
Arden. She was called the "Empress of Beauty" - her life was full of unexpected twists
and turns, and she herself was an example of a "self-made woman". It is said that she
changed the image of women by giving them a mirror of eternal youth. She was the first
to offer sunscreen, vitamin creams and anti-acne masks. She popularised mascara, lip-
sticks and face powders. She often said: "There are no ugly women, only lazy ones". She
managed the company until the end. Death found her in her office, where she had a
stroke. She died the next day in hospital at the age of 95.
• Max Factor was born Maximilian Faktorowicz to a Jewish family near Lodz in 1872.
He started modestly, working in a drugstore. The real breakthrough in his career came
in Moscow, where he eventually became a make-up artist at the Imperial Theatre. Due
to growing anti-Semitic sentiments, however, he decided to leave the Empire and emi-
grate to the USA. He quickly became a make-up star at the nascent Dream Factory. Max
Factor painted the most famous film icons such as Ava Gardner, Jean Harlow and Marle-
ne Dietrich. He himself believed that all women should have the chance to feel like a star.
He said: "You are not born glamorous! Glamour is something you create". In 1916, he
5
Chapter II
# The Power of Tradition
The Inter-War Cosmetics Boom
In 1919, with Poland regaining its independence after more than one hundred and
twenty years of foreign rule, society made a huge effort to modernise its economy. This
was a real wave of positive energy associated with the restoration of the independent
homeland. Small, local production plants had been established in what is now Poland
since the mid-19th century, but it was not until the 1920s that cosmetics production on
an industrial scale began. It was then that such cosmetic companies as Schicht-Lever
(later Uroda), Miraculum and Ewa were established.
In 1929 the Pebeco company started production under license from Beiersdorf. All in
all, during the twenty years of the inter-war period, several flourishing plants producing
cosmetics on an industrial scale were established, as well as many smaller, locally-opera-
ting companies. Already then, they were distinguished by real innovation and an in-
novative approach to what we today call marketing.
In 1931, Miraculum's powder won a gold medal at the International Exhibition in Paris,
and the company's founder, Dr Leon Luster, invited celebrities of the time to promote
his products - at home and abroad, including Miss Poland Zofia Batycka and theatre star Not all entrepreneurs who were deprived of their assets overnight wanted to live in the
Hanka Ordonówna. The cosmetics business in Poland developed with great success Communist state any longer. Some fled to the West, although the price was usually
until the outbreak of war. It was a kind of the end of the dream era. During the occupa- many years' separation from their families. The Communist regime nationalised all indu-
tion, most companies were taken over by the Germans. Many people involved in the co- stry. Paradoxically, however, the fact that we had traditions and existing cosmetics facto-
smetics industry did not survive the war, perishing in extermination camps or fighting in ries meant that it was Poland that became the centre of cosmetics and cleaning products
the Polish resistance movement known as the Underground State. production for the entire bloc of countries under Soviet domination. The taken-over
companies were replaced by a conglomerate called the "Pollena" Economic Chemistry
Post-war nationalisation Industry Union. It was in Poland that creams, lipsticks and perfumes used for decades by
Russian, Czech, Hungarian, Bulgarian, Romanian, Vietnamese and Cuban women were
After the war - only for a while - some of the pre-war owners were able to return to their produced.
companies and tried to start all over again. Unfortunately, everything ended according
to one scenario. One day the political police would enter their premises, ordering the Such brands as Pani Walewska, Miraculum or Celia enjoyed an international repu-
owner to pack up within a few minutes and never to return to the company again. This tation and thanks to their quality were considered luxury goods in socialist coun-
was the period of nationalisation and the human drama that went with it. tries.
6
Chapter II
nies" in the country, whose owners were emigrants of Polish origin. This was the basis,
for example, for the company Oceanic, founded by Ignacy Zenon Soszynski, a legend in
the cosmetics industry.
# The Power of Tradition What distinguished the private companies from the state-owned companies from
the very beginning was their excellent sense of the market, their attention to detail,
their brand values and their innovative ideas. Simply the effect of freshness!
In the DNA of Polish companies there was also an absolute flexibility and creativity - in a
period of market shortages getting everything (from raw materials, to packaging or ma-
Cosmetic craftsmen and money from Polish emigrants chinery) was a real organisational challenge, and yet Polish entrepreneurs coped well
and developed their own businesses step by step.
However, the entrepreneurial spirit of the nation has never disappeared. Under commu-
nism, the only way to set up private businesses was through regulations governing craf- The wind of freedom was blowing...
tsmen, and it was on the basis of crafts that the first private cosmetics companies were
established. Some of them have not only survived to this day, but have also developed The Poles have repeatedly made attempts at social revolt against the regime, which
very well over the years. Such were the beginnings of many companies known today, were usually brutally pacified. However, the spirit of freedom never died out in us. Final-
such as Dr Irena Eris, Inglot, Laboratorium Kosmetyczne Joanna, Dax Cosmetics, ly, the historic year 1989 came, when the first democratic elections were held. The com-
Eveline Cosmetics or Bandi Cosmetics. munists had to give up power because the system was no longer viable in any form. The
economy was in ruins. And when things got so bad that they could not get any worse, the
The 1980s saw a certain thaw in the economy, caused by the fact that the communist au- recent oppositionists formed the first non-communist government. Overnight, Poles
thorities needed foreign currency to repay their loans and Western businessmen could moved from a centrally planned socialist economy to capitalism.
use hard currency. It was therefore permitted to establish so-called "Polonia compa-
7
Chapter II
# The Power of Tradition
Characteristic photos from the first free market were of field beds, from which every-
thing was sold: including Western cosmetics, which had not been available in Poland for
years. At the same time more Polish cosmetics companies were established, including
Ziaja, Bielenda, Floslek, Soraya, Dermika and Delia. A new world was just being cre-
ated and everyone was looking for their chance. The memories of many entrepreneurs
paint a common picture: that of a family devoting all its savings, time, energy and efforts
to creating its own business from scratch. And this was a task made all the more difficult
by the fact that the early 1990s was also a period of expansion of Western concerns into
the Polish market. For domestic entrepreneurs, this meant an accelerated lesson in capi-
talism. What Western companies had worked out for decades, Poles implemented at an
express pace and learned the rules of the free market game on the living organism of
their companies. They had the ambition, ideas and dedicated employees to fight for their
position on the market.
At the same time, and this should be strongly emphasised, western concerns ente-
ring Poland did not treat our country only as a market, but the already existing in-
frastructure encouraged them to make strategic investments and establish produc-
tion centres here.
Sometimes these companies also bought the privatised assets of state-owned plants.
As a result, they had access to well-trained personnel and the capital allowed them to
modernise technology and marketing activities. Such market giants as L'Oréal, Avon,
Procter&Gamble, Henkel, Beiersdorf or Colgate-Palmolive, among others, produce
in Poland.
All this has given rise to the picture of the market we have today. Today, the Polish
market is a truly unique conglomerate of global companies, strong domestic enterprises
and new players, start-ups, which in recent years have entered the game with a bang.
They all feel the potential of this beautiful industry and see room for development of
their brands, both in Poland and abroad.
8
Chapter III
# The Power of Competition
Certainly the fact that Polish consumers have not given up on Polish brands has been a
big plus. After a certain period of being enamoured with products unavailable during the
communist era - which happened at the beginning of the 1990s - over time they retur-
ned to cosmetics "Made in Poland", all the more so because these were becoming more
and more attractive in comparison to the competition, not only in terms of lower prices,
but also in terms of excellent value for money. Interestingly, at the time there was no
shortage of analysts who expected rather stagnation and a gradual decrease in the
market share of Polish brands, which were expected to age with their current consu-
mers. From today's perspective we know how untrue those forecasts turned out to be.
Polish entrepreneurs have simply taken up the gauntlet thrown down by global con-
cerns and ... proved that they can create attractive and effective cosmetics, while at the
same time quickly learning the principles of effective marketing and modern sales.
EU acceleration - this miracle did not happen by itself
Also of significance in this story is the year 2004, when Poland officially became a
member of the European Union. Since then all export procedures have been simplified
as we have become part of the large common EU market. However, everything has its
price. The Polish cosmetics industry had to adapt to the legislation set out in the Cosme-
tics Directive within two years. The time of rapid changes in the legislation concerning
the cosmetics sector in Poland obviously did not end with its implementation. Already
three years after Poland's accession to the EU it turned out that the provisions introdu-
ced with difficulty will be replaced by a completely new document. The work on the
new Cosmetics Regulation carried out between 2007-2013 was the first opportuni-
ty for the sector to participate in the creation of sectoral legislation at EU level from
The key watchwords that best describe the character of the Polish cosmetics market scratch. Industry organisations played an important role as a link with the European re-
today are competitiveness and diversity. Despite the huge capital advantage on the part gulator: The Polish Union of the Cosmetics Industry and the Polish Association of the
of cosmetic concerns that entered Poland after 1989, the domestic business has defen- Detergent and Cleaning Agents Industry. Polish companies adapted their business to
ded its position. It was not an easy task, of course, but several factors contributed to the the new regulations at an express pace and passed the exam with flying colours, proving
fact that Polish producers not only were not wiped out of the market, but over time have once again that in their case sky is (not) the limit. Companies, both large and small, have
developed their business more and more and now represent real competition for the implemented good manufacturing practices (GMP), new product documentation and
biggest. safety assessments without a hitch.
9
Chapter III
# The Power of Competition
Today, Polish cosmetics factories, research laboratories and R&D centres are ema-
nations of the technological achievements of the 21st century.
Joining the European Union also meant other opportunities, which were fantastically
exploited by the Polish cosmetics industry. Companies applied for EU funds and grants A visit to Gdańsk (Ziaja), Trąbki Małe (Oceanic SA) or Piaseczno (Dr Irena Eris) is enough
to modernise their production facilities. Anyway, the golden rule of all the companies to convince oneself that they are super-modern, super-safe, equipped with top-of-the-
which wanted not only to survive, but to develop together with the developing market, -range equipment, ergonomically designed, both in terms of high production efficiency
was investments, and the EU aid funds were the dot over the "i" for the decisive moder- and the best possible working conditions. Polish factories have gigantic capacities at
nization of the business. their disposal, which also gives them great opportunities for business diversification in
favour of outsourced production.
Poland's presence in the European Union gives us more export opportunities not only
on the common market, but also on the more distant ones, where the perception of Eu-
ropean cosmetics is exceptionally good. A cosmetic produced in the European Union is a
guarantee of high quality and super-safety, which is determined by the extremely strict
requirements of the European regulator. At the same time, on many markets, e.g. in Asia,
consumers simply feel fondness for European products, identifying them with prestige,
elegance, quality and the best cosmetic traditions. These traditions are also part of the
Polish heritage. On many markets, however - from the perspective of the Polish expor-
ter - it is safer to label a product as "Made in the EU", because this peculiar EU stamp is
for the foreign consumer the key factor guiding his choice.
However, there are exceptions to this rule - e.g. Floslek clearly refers on its packaging to
the Polish and not only the EU origin of its products. Regardless of the labeling, every
Polish cosmetic sold outside our country contributes to supporting the #PL-Beauty idea.
Poland - 5th market in the European Union
Europe is currently the biggest cosmetics market in the world. According to Cosmetics
Europe, the value of the European market - calculated in retail prices - increased by 1.5%
to €79.8 billion in 2019. It is followed by the United States and China. This scale of acti-
vity shows how Polish companies are participating in the division of what is a huge busi-
ness cake.
10Chapter III
# The Power of Competition Top 10 cosmetics markets in Europe (€bn)
1. Germany
14.1
2. France
11.4
3. United Kingdom
10.6
4. Italy
10.5
5. Spain
7.1
The market leader in Europe is Germany with a turnover of EUR 14 bln, followed by 6. Poland
France, Great Britain and Italy. According to Cosmetics Europe, skin care and personal 4.1
care products account for more than half of the retail market value in Europe. Their 7. Netherlands
market share was 27.1% and 24.8% respectively in 2019. 2.8
The European cosmetics industry directly employs 207,000 people, with 1.6 million 8. Belgium/Luxembourg
working in related sectors (including beauty retail). It is worth noting that as much as 2.0
63% of the employees are women. The sector is quite fragmented, as apart from large 9. Sweden
concerns it is represented by around 5.9 thousand small and medium-sized enterprises.
1.9
Poland is currently the fifth biggest cosmetics producer in the European Union, and if 10. Switzerland
we include the United Kingdom in the analysis, we drop lower - to 6th position. 1.9
The value of the Polish cosmetics market is estimated at over 4.1 billion Euro. The Polish
cosmetics market continues to grow. According to Cosmetics Europe, in 2017 its value
was €3.705 billion; in 2018 - €3.861 billion, to reach €4.130 billion in 2019. Of course, Source: Cosmetics Europe, Market Performance Report 2019
there is still a considerable distance between us and the largest markets: German,
French, British and Italian, but at the same time the former are mature markets, while
the Polish one is still relatively young, promising and rapidly growing.
11Chapter III
The year 2020 was relatively stable for the shower gels and bath lotions category - the
value of this category by almost PLN 1.9 million (-0.1%). Deodorants sales amounted to
PLN 1.3 bln (-4.2%). Fragrances are worth PLN 2 billion, but here the pandemic caused
# The Power of Competition
an almost 18% drop. The value of the hair cosmetics segment was PLN 3.2 billion (a
change of -6.6%). Sales of male grooming cosmetics also dropped strongly in the pande-
mic year - by 14.1%, to PLN 2.5 billion. A 3% drop also affected the oral care segment -
this category generated sales of PLN 1.4bn in 2020.
Analysts expect the market to rebound after the pandemic and to see further years of
positive sales.
The potential for growth of the domestic market still seems high. According to Euromo-
nitor International, the volume of expenditure on cosmetics amounted to an average of
€100 per capita in Poland in 2018, with an EU average of €127. The highest averages
were achieved by Norway (229 Euro/person), Switzerland (220 Euro/person) and
Value of the cosmetics market in Poland
Sweden (194 Euro/person), while the lowest was achieved by Bulgaria (58 euro/per- 2016 - 2023 (billion EUR)
son). If Poland manages to maintain its high economic growth dynamics and consumers
return to less conservative purchases after the pandemic period, the sale of cosmetics
should continue to grow rapidly.
There is another perspective which ensures that the prospects for the Polish cosmetics
sector are still optimistic. Over the last 15 years the Polish cosmetics market, calculated 4,5
4,3
in constant prices, has grown by as much as 38%, which gives an average annual growth 4 4,1
3,8 3,9
of around 2.35%. The sector's giants - France and Italy - are already seeing a kind of sa- 3,6 3,7
turation and stagnation - their markets have shrunk by around 0.6%. So everything is
ahead of us!
PLN 17.8 billion - value of the market in 2020
The cosmetics market, which for many years has been growing uninterruptedly year on
year, is this year recording a weaker result in comparison with the last two seasons. The
reason is simple and complicated at the same time: COVID-19.
In 2018, research firm Euromonitor International estimated its value at PLN 18.8 bil-
lion, in 2019 - PLN 19.4 billion, and the latest estimates for 2020 put its value at PLN 2016 2017 2018 2019 2020 2021 2022 2023
17.8 billion. It may not be a dramatic slide, but the pandemic has clearly left its mark on
most cosmetic categories. In the case of colours, the drop is as much as 15.3% on the
previous year. Body care is down 10% and facial care is down 7.4%. Estimates assume Source: Euromonitor International 2019
that sales of facial care cosmetics will stop at PLN 2.8 billion in 2020 (vs. PLN 3.09 billion
in 2019).
12Chapter III Lots of us! Cosmetics attract the ambitious
According to the estimates of the Central Statistical Office, an impressive 1134 cosme-
# The Power of Competition
tics producers and distributors are registered in Poland. For a country of 38 million
people, this is impressive. Over the past three years, as many as 344 companies have
joined the industry, and in 2019 alone, 119 new cosmetics companies have appeared on
the market! Euromonitor International, on the other hand, estimates that cosmetics
production alone was involved in Poland in 2019. 531 companies. According to CSO es-
timates, the entire sector generates employment for over 40,000 people....
Exceptionally wide choice
The Polish cosmetics market is definitely fragmented. Hard figures show this, but life
experience also convinces. It is enough to enter any drugstore to find out that in Poland
the shelves are filled to the brim with a variety of products from many brands - and in
principle in every product category. This situation obviously has its good and bad sides.
On the one hand, strong competition makes it necessary for companies to quickly re-
spond to market trends, compete on quality and build close relations with consumers.
The latter have access to a really wide range of products and can be guided by many fac-
tors in their choices: price, brand, product composition, etc.
At the same time, a number of consumers already admit to being overwhelmed by an
excess of products. Other consumer studies, however, show that most consumers ap-
preciate the wide range of choice, while not being overly loyal in their choices. Poles usu- Strong with small and medium-sized enterprises
ally move within a few brands they like in particular categories, but they are also open to
new ones (sometimes completely unknown to them), if these intrigue them in some way. The majority of Polish cosmetics producers are small (employing up to 50 people, with
Not without significance is the issue of price promotions, which are a strong marketing an annual turnover below 10 million Euro) and medium-sized enterprises (employing up
stimulus and a shopping magnet. to 250 people with an annual turnover below 50 million Euro). Their strength is flexibili-
ty of operation, market experience and know-how, as well as great market imagination,
According to the latest research carried out by ASM - Centre for Market Research and combining cosmetic creativity with consumer expectations and needs. In Poland, the
Analysis in October 2020, commissioned by the Foundation for the Polish Promotional number of small and medium enterprises is still growing, while in Germany this number
Emblem "Teraz Polska", 81% of Polish consumers declare that when shopping, they put dropped last year from 397 to 348, in France from 807 to 607, and in Italy from 828 to
product quality first. At the same time, when making purchasing decisions, the impor- 814. The aforementioned decreases do not have to result from bankruptcies or the ulti-
tance of price is also increasing, which was indicated as a key consideration by 77% of re- mate cessation of business activities, but are sometimes connected with acquisition and
spondents. Consumer patriotism is also becoming an increasingly important trend - as concentration processes. Similar concentration movements - with such a fragmented
many as 73% of respondents, given a choice, declare to buy products of Polish origin. market - can also be expected in Poland in the coming years.
13Chapter III
# The Power of Competition
Strong competition is ideal for smart shoppers
The stronger the competition on the market, the more consumers are able to make favo-
urable purchasing decisions. And this is indeed what is happening. According to rese-
arch by Nielsen Poland, in terms of the number of shops Poland has one of the highest
ratios in Europe (25 shops per 10,000 inhabitants). Shoppers also benefit from this
diversity, which means that they are not tied to one place where they regularly do their
shopping. They are often guided in their choices by attractive prices and available pro-
motions (up to 40% of consumers actively seek them out). Even if the pandemic of 2020
prevented consumers from spending without thinking, and during lockdown shop visits business, move sales to the Internet, but also supply those products for which there was
were severely limited, the movement has clearly shifted to the online world. the greatest market demand. Many Polish producers therefore switched to the pro-
duction of disinfectant liquids, despite difficulties in the packaging and raw mate-
Strong e-commerce growth rials markets. This made it possible to offset losses in other categories.
Online sales have had one of the highest growth rates among all channels of the cosme- The cosmetics of the year were antibacterial soaps and gels. From March to November
tics market for several years and this is not going to change in the coming years. Accor- 2020, Poles bought, according to Nielsen data, over 17 million packages of antibacterial
ding to research conducted by PMR, by 2025 online sales will account for over 15% of hand preparations, 81 million bars of soap and 58 million packages of liquid soap. These
the cosmetics market. The high growth of the online channel dynamics is influenced by are increases of 700%, 12% and 38% respectively compared to the same period in
the presence of all major players in the online channel. In 2019, the last of the big players 2019. The soap category recorded a value increase of 40%, while a year earlier
in the market - Hebe - launched an online shop. The popularity of online shops of other analysts spoke of a stable market (+1.6%). With antibacterial preparations, an incre-
major chains in Poland is also growing. The growth of the channel's dynamics is still influ- ase of 600% seems ... low, but let's remember that this type of product in spring was
enced by new players appearing on the market (e.g. Flaconi), or the expansion of the bought in all possible places, including channels not covered by Nielsen, and supplies
offer of cosmetic articles by companies outside this market, such as Zalando. Clearly, the and sales did not keep up with demand. For this reason, consumers supported them-
COVID-19 pandemic has also contributed significantly to accelerating this trend... selves with homemade remedies, such as those based on spirits - the total size of this
market undoubtedly exceeds the recorded values. Among the few cosmetic categories
The pandemic also had an impact on cosmetics that grew faster from March to November than the year before were hair colorants
+9.3%, while the cosmetics basket recorded a 4% drop in sales value. It has been a diffi-
The year 2020 was definitely unique in every way. The outbreak of the pandemic bro- cult year for the entire cosmetics industry. In addition, this crisis did not have a lipstick
ught the world to a standstill and forced reactive measures in response to sudden and effect. Besides, it is difficult to find a less practical cosmetic in 2020 - the lip make-up
unexpected changes. It is widely believed that the cosmetics sector has proved quite re- segment fell by 35% in value. Colour cosmetics producers hope that when the worst is
silient to the coronavirus. A large part of the credit for this goes to the entrepreneurs over and we can finally take off our masks - women will return to painting their lips,
themselves, who faced many challenges and did everything they could to save their own which may also be a sign of humanity's victory over the plague.
14Chapter III
Another player - by market share - is the food discount chain Biedronka. This company
does not specialise in cosmetics, but due to its large network of shops, even a modest
offer translates into a significant place in this category. A more modest share was taken
# The Power of Competition
by the discount chain Lidl and the drugstore Hebe. There are also several other drugsto-
re chains operating in Poland, including Natura, Kontigo and Jasmin. Selective and pre-
mium cosmetics are sold in Sephora and Douglas perfumery chains. In the case of der-
mocosmetics, the market leader is the Super-Pharm chain.
Poland vs. the rest of the world - what can be seen on the shelves?
Looking at the Nielsen data, it is clear that the share of Polish cosmetic companies varies
depending on the category. Polish brands fare best in the already mentioned face care
category, where they account for almost half of the market, generating a total share of
47%. Polish producers also have a strong position on the local market for facial colour
To buy cosmetics at the drugstore cosmetics, where Polish products account for as much as 38% of the entire category.
Polish women are also keen on Polish eye make-up products (37%). Domestic products
Cosmetics in Poland are purchased mainly in drugstores. According to the Payback Opi- also generate a good sales result in the category of body care products - 34%. We are
nion Poll (2020), as many as 74% of respondents go to drugstores to buy cosmetics. doing quite well - in spite of the competition - in shampoos (17%) and even better in
They are followed by super- and hypermarkets (28%) and the Internet (20%). Almost soaps (22%). The situation is worse in shower gels (11%), deodorants (only 5%) or to-
half of Poles go to drugstores several times a month, while every fourth person visits othpastes (3%). Here, the offer of global corporations tends to dominate.
them even once a week. Attractive prices and promotions, used by as many as 81% of re-
spondents, are among the most important determinants of purchase.
When choosing particular cosmetics, Poles pay attention not only to the price (over
50% of indications), but also to their natural composition, which is important for
almost 40% of respondents, and the brand (32%). Opinions are divided when it comes
to the habitual use of particular producers. Half of consumers always buy the same pro-
ducts, while the rest like to experiment with new brands. As it turns out, Poles are also
willing to reach for private label offers of particular drugstores. 51% of respondents use
them sometimes, while every sixth person often. Over 40% spend from 50 PLN to maxi-
mum 100 PLN a month on the entire shopping, while one in five spends less than 50
PLN.
Rossmann is the leader in cosmetics sales in Poland
According to a PMR study (February 2020), Rossmann remains the leader in cosmetics
sales, with a market share nearly three times bigger than the next player. This retail
chain has dominated the cosmetics sales market in Poland for years. At the end of
2020 it had an astronomical number of around 1400 shops.
15Chapter III
# The Power of Competition
Face care Facial colour cosmetics Eye colour cosmetics Body care Soaps
47% 53% 38% 62% 37% 63% 34% 66% 22% 78%
Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies
Shampoos Shower gels Deodorants Toothpastes Shaving razors
17% 83% 11% 89% 5% 95% 3% 97% 0,5% 95,5%
Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies Polish companies foreign companies
Source: Nielsen, Market shares of Polish and foreign companies in top 10 categories, Total Poland, MAT TY July 2020
16Chapter III
# The Power of Competition
What next?
2020 was akin to a rollercoaster ride. Businesses feared for liquidity, packaging shorta-
ges and broken supply chains were acute (especially during the first wave). It is questio-
nable how demand will develop after the pandemic. It will depend not only on the pur-
chasing capacity of consumers, which is, after all, linked to the state of the economy, but
also on mentality, which will perhaps lead us to make more prudent and thoughtful pur-
chases.
"I believe that the cosmetics industry has handled this unprecedented crisis well - better than
many other FMCG manufacturers whose businesses have often been shaken to their founda-
tions. The period of the pandemic should be treated as confirmation that the Polish industry is
made up of real leaders, and the fact that the cosmetics industry was chosen as one of the
"Champions of the Polish Economy" was no accident. Nevertheless, we still have a long way to
go to get back to the level of March this year, when we recorded dynamic growth in every
aspect of our activity" - said in autumn 2020 Blanka Chmurzyńska-Brown, General
Director of the Polish Union of Cosmetics Industry.
17Chapter IV
"The natural cosmetics market has very high potential. This can be seen in other countries. It's
one of the fastest growing segments of the cosmetics market. I think it will grow very dynami-
cally in Poland, because we are still a bit behind other European countries. However, looking at
# The Power of Trends
the popularity of organic food fairs and vege restaurants in Warsaw, and probably in other
cities as well, it seems that we will catch up with Western Europe very quickly," emphasises
Magda Hajduk, Naturativ's CEO.
The "Slow life in Poland" report by Naturativ shows that 38 per cent of people declare to
buy natural cosmetics. For Poles, it is the effects of use and effectiveness that count, but
for 16% the natural composition is important. More than 40% read the composition of
cosmetics before buying, some also use applications that scan the product code and
The cosmetics industry has always been extremely sensitive to any new trends. They display information about the ingredients. The most frequent buyers of such cosmetics
have been a strong stimulator of the market, a leitmotif that forced companies to look are people aged 35-44, living in cities with 20-50 thousand residents (39%) and big
for their own, original answers. According to Katarzyna Butrymowicz-Knap, marke- cities (34%). Women are more frequent buyers than men.
ting director of Bielenda Natural Cosmetics, it is an extremely important issue in this
branch: "Every brand that wants to develop has to observe trends and quickly react to the The increase in popularity of natural cosmetics is connected, among other things, with
newly emerging ones. In this context, one of the main challenges seems to be to assess to what consumers' growing ecological awareness. Also of significance is the growing number of
extent certain market trends are promising. Are we dealing with a short-term fad or a lasting people declaring veganism or vegetarianism, which translates not only into diet, but also
trend that will have a significant impact on implementation decisions?" into purchases of products from other categories, including cosmetics.
Polish cosmetics companies are quick to sense and adapt global trends. They put them There is another aspect that strongly stimulates the market. In Poland, the number of
into practice in the form of specific products and lines in real time, that is, exactly when natural cosmetics producers has increased significantly in recent years. These are often
the market needs them. Certainly, the strongest trend on the beauty market globally craft brands, created by family teams of several people. In fact, some of them have not
today is naturalness. Poland has a lot to offer here! We have plenty of young companies stopped at this stage, but have grown to quite a sizeable company, as their brands have
that create fantastic products, taking care of every little detail: composition, packaging, become extremely popular. The influence of social media, which we write about in Chap-
creative communication. On the other hand, it is worth remembering that we also have ter 6, was not insignificant for this green boom.
manufacturers on the market who have been creating natural products for decades,
long before it became fashionable (one example is Laboratorium Kosmetyczne Ava, exi-
sting since 1960).
The natural boom continues
Natural cosmetics in 2018 accounted for 4% of the total cosmetics market in Poland.
This share increased in subsequent years, with sales supported by trends related to he-
althy lifestyles. According to PMR, the natural cosmetics market in Poland was worth
PLN 0.9 billion in 2018. However, this data does not fully reflect the market climate, as
it is subject to very dynamic changes. The share of natural cosmetics in some Western
European countries is already in double digits and we will probably reach this level soon.
Already today this segment is growing faster than the entire cosmetics market.
18Chapter IV Feel the change, be a part of it
Cosmetic companies must also respond to social changes, changes in consumer attitu-
# The Power of Trends
des, including those reinforced by the Covid-19 pandemic. In today's world, marketing
without values is an empty shell. Consumers - in every latitude - stress that they are
sensitive to falsehoods, exaggerated promises of manufacturers or the pressure of the
cult of beauty or youth. Rather, cosmetic brands must become allies of their lifestyle,
share their values, speak with the same voice on important issues. Products have to
make the consumer feel better and more confident, and using the product gives her a
break from the stress of everyday life.
So for sure the marketing communication is changing.
Some Polish companies seem to be very progressive in this respect. This is especial-
Key credibility ly true for young brands, who felt that a certain narrative in this industry has run out
of steam.
Consumers today particularly appreciate the sincerity of intentions and the honesty of
producers. This is the strength of young brands, which have quickly convinced a wide au- They focus on a close relationship with consumers, communicate their products very
dience. honestly, and avoid images that are clichéd and too idyllic for the difficult times of 2020.
This is how they win sympathy and loyalty.
"Natural, organic, vegan cosmetics are not just a trend, they are a whole philosophy of life. The
founders of small cosmetic companies were often the first representatives of slow life, eco,
vegan, hygge, before they started production. They unsuccessfully searched for natural cosme-
tics on the Polish market a few years ago, so they started producing them themselves," - says
Hanna Kurcińska, owner of Hagi Cosmetics.
What seemed to be a niche market for some time, together with the growing popularity
of eco-cosmetics, attracted big players who also entered this segment more deeply.
Today we can speak of a snowball effect. Just as social media played an important role in
promoting this type of product, consumers are also verifying online whether this or that
cosmetic is really organic or whether the manufacturer is using the so-called greenwa-
shing, i.e. merely pretending to be natural.
The natural boom continues, and there are no signs that the trend will die out or that the
subject will become boring. On the contrary - more and more consumers declare that
they reach for such products most willingly. Naturalness is a true and definite hallmark
of #PolishBeauty. We have many great brands that are making a green revolution not
only in Poland but also selling well abroad, including Yope, Alkemie, Resibo, Only Bio,
Clochee or Naturativ.
19Chapter IV
strength, and this is not, as its opponents want, a promotion of unhealthy excess weight,
but an encouragement for women to have more self-acceptance. Fortunately, there are
more and more people who are convinced that the glitz of Instagram is just a substitute
# The Power of Trends
for life, and trust in female influencers, who have become advertising pillars for hun-
dreds of brands, is waning...
Examples from #PL-Beauty:
In Poland, many manufacturers offer 70+ cosmetics. We can easily find such in the offer
of the following brands: AA, Janda, Soraya, Farmona or Dr Irena Eris. We also have co-
So which trends do cosmetics companies pay attention to? smetics for eighty plus women. Such creams are offered, among others, by such brands
as Pani Walewska, Bielenda, Perfecta, Lirene or Eveline Cosmetics. However, it is impor-
Inclusive Beauty tant - apart from extending the offer with products for mature women - to change the
perception of age. In the social media of the Nou brand, one can find beautiful photos fe-
The global trend is to send a clear message that the cosmetics industry should not close aturing mature women. This is the right direction, both looking at demographic trends
itself in stereotypes, should not create canons of beauty that exclude or cause com- and the desired inclusivity in the beauty world.
plexes. For many years, consumers have felt that the cosmetics business imposes a
certain ideal model on them, which is difficult to measure up to. Advertisements for
cosmetic products were dominated by the image of youth, a perfect figure and perfect
skin. The cult of beauty has simply become distorted. So much so that L'Oréal's research
shows that 40% of women over 50 feel unnoticed by cosmetics companies. And yet
these are the people with the most money at their disposal. Consumers even believe
that for years the cosmetics business has been lulling women into thinking that their
mature age is something to be ashamed of by offering anti-aging products (hence the re-
placement of this term with "slow-age" or even "pro-age" cosmetics as an expression of
the fact that there is no point in fighting age, but it is necessary to pay better attention to
the needs of mature skin). The approach to age is clearly changing. Series such as "Fran-
kie and Grace" or the popularity of some Instagrammers aged 65+ (not only among their The slogans of democratising beauty, positive enhancement and being together with
peers) show that age is really just a metric, and people remain themselves: they have consumers are close to a really significant number of Polish manufacturers. In the mate-
their passions, emotions, and lives that are far from the stereotypes of the old lady knit- rials promoting the Annabelle Minerals brand, the manufacturer presents the entire
ting or the senile old man who irrevocably loses his masculine element in retirement. spectrum of beauty - people of different sexes, skin colour, clothing size, age or skin type
(including problematic skin). Resibo's "Modern Nature is Calling" advertising campaign
Consumers are also making it clear that they no longer want to live in an unrealistic was about a strong woman aware of her beauty. In its manifesto, the manufacturer calls
world. Exaggerated promises, excessive Photoshop in the images - this is an approach for true beauty to come from within and be free from fashion trends, social dictates and
from another era. Today it is time for the truth. The Dove ad campaigns, which featured worries. The founders of Miya Cosmetics write on their website that they are not
women of different skin colours, beauty types and figures, were more likely to strike a backed by any big corporations and staff in glass office buildings. - Team Miya is us and
chord with consumers because they made them feel that each of them was important. you - all the girls who are with us on Instagram, Facebook and who create Miya Cosme-
So cosmetics brands started to follow this trend. Cosmetics and their communication tics together - we read and (really) feel this closeness of relationship while watching the
must not make anyone feel complex. The body-positive movement is growing in brand's social media accounts.
20Chapter IV natural resources, which may affect the entire planet in the nearest future. When cre-
ating a strategy, it is undoubtedly worth taking into account the less/zero waste
trends, which are becoming an important reason for consumers' purchasing deci-
# The Power of Trends
sions. This is also linked to transparency. Consumers are becoming more and more edu-
cated, they want to consume consciously, while at the same time they are becoming
more and more sensitive to pretending to be natural. Consumers, especially in younger
age groups, are also resistant to platitudes. Instead of declarations, they want concrete
actions to convince them that a company really is doing responsible business.
How important is it to you that your company
introduces environmentally friendly solutions?
Generation Z (15-20 years) 80%
Millennials (21-34 years) 85%
The idea of female support and inclusivity is also close to the Be The Sky Girl brand.
"Since the brand was founded, we have encouraged our female consumers to live in har-
Generation X (35-49 years old) 79%
mony with themselves. To explore the world with charm, girlish curiosity and courage,
and with love, good energy and passion at heart. "Awake the girl in you!" is an invitation
to live a life full of extraordinary adventures, on your own terms, regardless of age - be-
Baby Boomers (50-64 years) 72%
cause youth is a state of mind, and girlhood is a state of spirit! We want to show that at
any age you can let yourself be spontaneous and a bit (or quite a lot) loose and crazy," say
its founders.
Silent Gen (65+) 65%
Think about planet Earth
Source: Global Consumer Confidence Survey, 2017
According to the Nielsen study, as many as 81% of consumers surveyed believe that ma-
nufacturers should take environmental requirements into account when creating pro-
ducts. Companies' actions are supposed to be an answer to the problem of availability of
21Chapter IV Mindfulbeauty
Consumers are increasingly bold in breaking away from the unrealistic beauty canon,
# The Power of Trends
but that doesn't mean they're breaking away from cosmetics. It's much more important
now (and this trend has also increased during the pandemic) that the cosmetic enhances
the mood, relaxes, nurtures. The self-care aspect is very strong - searches for this phrase
have grown exceptionally strong on Google over the past few months, and the hashtag
#mindfulbeauty has been used almost 50,000 times on Instagram. Under this hashtag,
users share their beauty rituals in which mindfulness, breathing techniques or medita-
tion play an important role.
By consciously performing skincare practices, you can truly calm down, relax and stay in
touch with yourself. In this way, the cosmetic's potential for action is maximised. Cosme-
tic ingredients are designed to reduce inflammatory processes in the skin caused by
stress - both internal and external (e.g. HEV radiation or smog).
Examples from #PL-Beauty:
Many brands are creating or subscribing to the 'self-care beauty' trend. Fantastic home
Examples from #PL-Beauty: spa products are offered by Veoli Botanica, Stara Mydlarnia, Nacomi, Fluff, Tołpa, Hagi
Cosmetics, Ministry of Good Soap, Senkara, Mokosh, Samarite, Orientana, Slaap, Body-
Polish brands are increasingly not only declaring that they are close to nature, but are Boom, Phlov, Uzdrovisco, Sensum Mare, among others. Ingredients that protect the skin
taking concrete actions to improve the environment. Yope has a long-term #BeeYope against the adverse effects of blue light or air pollution are offered by Alkemie, Arkana,
campaign, supporting the return of bees to nature (e.g. when buying cosmetics from the Oio Lab, Janda, Dermika, among others.
Lip Flower line, customers received seeds for sowing meadows, which simply promotes
biodiversity), and part of the proceeds from the sale of cosmetics have fed the Meadow Careful Minimalists
Foundation. Yope is also known for having opened the first cosmetics boutique in Poland
to use refill products, and is expanding this idea to other outlets in selected supermar- Minimalism is another trend that is gaining in pandemic. According to Mintel data, over
kets in Poland. The Only Bio brand also opened an automatic refill station in the half of UK women aged 20-29 (and this is one of the most relevant buying groups), say
Rossmann drugstore in Manufaktura in Łódź. Almost immediately, this place turned out they have simplified their skincare routine. The reasons for this vary. Some women feel
to be a cult for all customers who care about reducing the amount of plastic used. that 'less is more' skincare is a healthier option for their skin. For other women, it's the
pandemic of staying at home and the simultaneous lockdown of beauty salons that has
Floslek also focuses on the same aspect, with some of its product lines available in refill caused them to take stock of their cosmetic shelves, discovering how much they've ac-
packs. So the consumer doesn't have to buy another jar of cream every time, she just cumulated over the years. What's more, we often find that we have products at home
needs to buy a refill of her choice - brilliantly simple! As part of the #ZeroWasteByIossi that haven't even been opened, and their expiry date has long since passed. They have
programme, the Iossi brand has started cooperation with selected points in Poland to become nothing but waste, and this (see point: "Think of the planet Earth") is a major
which customers can return as many refill packs of all products as they wish, from where source of remorse for us.
they are periodically sent back to the company's headquarters. The owner of Naturativ,
on the other hand, says directly that she uses only white glass and white polypropylene
in the packaging, because these are the only recyclable materials.
22Chapter IV
sters are unlikely to return to shops for a long time, seems to be the optimal solution. In-
creasingly, artificial intelligence or a bot will also accurately answer users' questions. It is
worth having this kind of innovation on your side, even if, even now, for some companies
# The Power of Trends
it seems like some kind of song of the future.
Examples from #PL-Beauty:
Here still to the technological ingenuity of Korean creators or products/services already
offered by corporations, Polish companies still have some distance to go. However, the
Minimalism also applies to the composition of products. Here, too, an increasing number first swallows of personalization itself are already visible on the market. Fans of unco-
of consumers around the world are paying attention to keeping the composition as nventional, personalised fragrances can create them with Mo.61. Personalised creams
simple as possible, free of many undesirable ingredients. Such cosmetics are considered can be ordered from Crème Bar. Creamy also offers personalised skin care based on a
safer and less burdensome for the skin. But in minimalism, apart from what is not in the questionnaire and skin diagnosis, and more and more online drugstores are employing
cosmetic, what is in it is equally important. Hence, active ingredients are very carefully cosmetologists to recommend the best cosmetics for each individual customer.
selected, especially in terms of their health-promoting effects on skin condition, e.g. pre-
biotics, which support the skin microbiome. In Lip Lab, on the other hand, you can create your own lipstick - not only the colour is
unique here, but also the taste or other product properties, such as SPF filter or holo-
Examples from #PL-Beauty: graphic pollen. In the years to come, it can be expected that more and more companies,
apart from developing cosmetics, will create applications that will be helpful in consu-
The list of companies whose products fit into the minimalism trend is really long. The mers' daily skincare routine.
idea of these brands is to encourage a conscious search for the best, most suitable co-
smetics for the skin. In this trend it is not only the quality of the final product that mat- It is certainly also worth noting that the best companies are investing heavily in re-
ters, but also the uncompromisingly high quality of the individual ingredients that make search and development. Cosmetics draw on many sciences, including medical
it up. This approach distinguishes brands such as: Glov, Gift of Nature, Bandi, Veoli Bota- knowledge, and scientific patents, such brands as Dr Irena Eris or AA, are the real
nica, Koi, Olivia Plum, Krayna, 4 Szpaki, BasicLab. The "less is more" approach is also cha- power of innovation.
racteristic of dermocosmetics and very simplistic, so great from the perspective of sen-
sitive skin, cosmetic compositions have brands such as: Oillan, Dermedic, Pharmaceris,
Ziaja Med or Emolium.
A brave new world (of beauty)
Digital solutions are now the engine of innovation in this industry. In January 2020. CES,
the international trade show showcasing pioneering consumer technologies' saw a 10%
increase in beauty industry exhibitors. The future of beauty technology will be driven by
the growing demand for bespoke formulations. Clare Varga, head of beauty at trend fo-
recasting agency WGSN, calls this 'bespoke cosmetology'. With technology, professio-
nal treatments will be possible in the comfort of bathrooms, which is especially impor-
tant during times of enforced isolation, and personalised product will best meet the
needs of the individual. In addition, applications will allow testing and selecting the right
products from those already available on shop shelves, which also in a situation when te-
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