Production of cosmetics in Poland

The cosmetics industry in Poland is experiencing dynamic growth and is gaining recognition both on the domestic and international markets. Production of cosmetics in Poland is a field that is constantly evolving, using modern technologies and proven ingredients to create innovative products. What are the prospects for this developing sector?

Cosmetics in Poland – production and industry development

Over the past few years, the Polish cosmetics industry has significantly increased its position, and as data provided by Cosmetics Europe shows, Poland ranks sixth in Europe in terms of the value of the cosmetics market at the retail level. This means that the Polish cosmetics market is worth 4 billion euros, which puts our country behind Germany, France, Italy, Great Britain, and Spain. In 2021, the value of the domestic market was estimated by the Statista portal at 3.9 billion euros, and forecasts show that it should increase to 4.9 billion euros by 2026.

According to data provided by Cosmetics Europe, there are over 7,000 small and medium-sized enterprises involved in the production of cosmetics in Europe, and most of these companies operate in France (1173), Poland (733), and Italy (667). Poland is therefore one of the most active markets on the Old Continent. The vast majority, as many as 71% of companies, are entities with domestic capital. They generated 42% of the total revenues of the cosmetics industry at the end of 2021, and as much as 53% of net profits. The remaining 24 entities in the industry have a predominance of foreign capital, including global giants such as L’Oréal, Beiersdorf, Colgate-Palmolive, Oriflame, and Avon, which manufacture their products in our country. At the end of 2021, there were as many as 83 companies in Poland that employed more than 9 employees, and the total number of employees was 15.4 thousand.

Importantly, the production of cosmetics in Poland is increasingly based on contract services. Cosmetic companies choose this business model due to, among others, a lower entry threshold, lower investment outlays, and lower risk. They can entrust the production, testing, and promotion of products to specialists in this field, instead of deciding to open their own production lines.

What is contract manufacturing of specialized cosmetics?

Contract manufacturing of cosmetics involves the production of cosmetics on behalf of other companies, called clients. This means that the company specializing in contract manufacturing is responsible for the entire production process, from developing the recipe, through the purchase of raw materials, to the production and packaging of the finished product. Often, it also deals with the introduction of the product to the market and its marketing. Specialty cosmetics are manufactured using advanced technologies and ingredients with specialized effects, such as products for the care of sensitive, problematic skin, or anti-aging cosmetics.

Cosmetics in Poland – contract manufacturing

What contributes to the growing interest in contract manufacturing of cosmetics? This phenomenon is largely due to the constant pursuit of innovation in the cosmetics industry and its dynamic development. Customers are extremely interested in new products, looking for products that will meet their expectations and help them achieve the desired effects. In addition, more and more new players are appearing on the market who have innovative ideas for new brands or cosmetic lines, and do not necessarily want to invest huge sums in their own production lines. Instead, they can outsource the production of cosmetics in Poland and entrust them with testing their concepts.