The cosmetics market will grow, driven mainly by rising prices

News

The cosmetics market will grow, driven mainly by rising prices

In 2023, the value of the cosmetics market in Poland will exceed 31 billion PLN, following a 6.2% increase. However, in real terms, growth will be negative. This is according to the report “Retail Trade in Cosmetics in Poland 2023.” PMR also forecasts that the body care and bath products categories will be the only basic personal hygiene categories whose growth rates will exceed inflation.

The Value and Growth of the Cosmetics Market in Poland

According to PMR Forecasts, the cosmetics market in Poland will grow by 6.2% in nominal terms in 2023, but real growth will be negative, at -0.8%, and the value of cosmetics sales will exceed 31 billion PLN.

Inflation will be one of the main drivers of nominal market growth. The slowdown in growth will result from a decline in real disposable income and a drop in real wages, and consequently, a marked slowdown in private consumption. An additional positive factor will be the presence in Poland of approximately 1.5 million refugees from Ukraine (on average per year), who will support real market growth, primarily in the category of daily care cosmetics.

Body Care and Bath Products by Category with Real Growth in 2023 and 2024

According to PMR’s estimates, body care and bath products will be the only cosmetic categories among those related to basic personal hygiene whose growth rates will exceed the expected rate of price increases in 2023–2024.

As a result, these categories will strengthen their market share during this period. We forecast that in 2024, the body care category will account for over 17% of the total cosmetics market, while the bath products category will account for nearly 13%. This represents an increase of 0.4 percentage points and 0.2 percentage points, respectively, compared to 2022.

Body Care Products – Forecast

However, in the long term, the market share of products related to basic personal hygiene—that is, body care and bath products—will decline. By 2028, these categories will see a slight decline in market share. Over the forecast period, body care will lose its position as the category with the largest share of the cosmetics market to facial care products. It is worth noting that for years, this sector was the largest category in the Polish cosmetics market, serving as the foundation of personal care for both genders.

Hume’s Institute stands for knowledge. PMR Market Experts stands for experience. When we join forces, you gain a competitive edge. See how we can support your business.