Record Growth in the Cosmetics Market in 2022

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Record Growth in the Cosmetics Market in 2022

In 2022, PMR forecasts that the cosmetics market in Poland will grow by 6.1% year-over-year, to approximately 27.7 billion PLN. This is the highest growth rate since 2009. These conclusions are drawn from PMR’s latest report titled “Retail Trade in Cosmetics in Poland 2022: Market Analysis and Growth Forecasts for 2022–2027.”

The Dynamics of the Cosmetics Market in 2022—What Is Driving This Significant Growth?

Several factors are contributing to such strong market growth, including:

No significant impact of the coronavirus on the behavior of consumers purchasing cosmetics
no restrictions are currently anticipated in connection with possible future waves of the pandemic,
rising inflation, which is causing prices of products to rise and, at the same time, increasing the overall amount spent on cosmetics,
the influx of refugees from Ukraine, triggered by Russia's invasion of that country.

Outlook for the Cosmetics Market

The cosmetics market continues to be a promising one, due in part to growing consumer awareness and rising disposable income. This is leading to changes in consumer habits regarding cosmetics purchases, which in turn are driving an increase in spending on these products. Although price remains one of the key factors when purchasing cosmetics, and Poles are eager to take advantage of promotions, it is no longer the dominant factor. An increasing percentage of consumers are focusing on the quality and effectiveness of products.

According to PMR Forecasts, the cosmetics market in Poland will continue to grow in the coming years (2023–2027), expanding at an average annual rate of 3–5%, which is slightly higher than the rate observed over the past five years.

Where will we buy cosmetics?

In the future, the cosmetics retail market will focus on two channels:

Brick-and-mortar drugstores—the go-to stores for purchasing these types of products.
The online channel—e-commerce—will serve as an alternative to brick-and-mortar drugstores, where consumers will be able to purchase products not available in physical stores, as well as adopt an omnichannel approach to shopping by making their purchases at the online drugstores of the largest chains.

Where do we usually buy cosmetics?

According to a PMR study, 83% of Poles who buy cosmetics typically make their purchases at brick-and-mortar drugstores, while 37% of consumers choose online stores. According to PMR Forecasts, these two channels combined will account for over 57% of the total cosmetics market by 2027.

Young people and aspiring adults are the largest consumer segment in the cosmetics market

PMR has segmented cosmetics buyers into five distinct groups, each characterized by different purchasing behaviors:

Young and aspiring,
Small-town,
Conscious and active,
Economic minimalists,
Mature and conservative.

What does the cosmetics market look like in terms of consumer groups?

The largest segment (in terms of size) is Young and Aspiring, accounting for more than one-fifth of all consumers. They are more often women (54%) and younger people (aged 18–34) (37%). These are consumers who frequently purchase specialty cosmetics and products for people with allergies. They read reviews of cosmetics before making a purchase and strive to stay up-to-date. More than any other segment, they try to buy cosmetics on sale or wait for seasonal sales. They are also socially engaged individuals who strive to make conscious cosmetic purchases. They are interested in whether a company tests cosmetics on animals and whether it engages in CSR activities. More often than any other segment, they spend their free time pursuing hobbies, such as listening to podcasts or playing sports. They report engaging in physical activity at least once every two weeks (58%).

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