In recent years, Poland has been one of the largest suppliers of cosmetics to Russia, Ukraine and Belarus. In 2021, exports to these markets amounted to EUR 495 million, accounting for approx. 13% of the value of Polish cosmetics exports.

The Russian aggression against Ukraine has had a significant impact on the Polish cosmetics market. In the first weeks after the outbreak of the war, Polish companies suspended their operations in Ukraine and suspended the shipment of products to Russia and Belarus. Of course, it will be reflected in the reduction of exporters’ revenues. The costs of the production for these markets will lower profits, says the analysis of PKO BP “Consequences of the war in Ukraine for the Polish cosmetics industry”.

Most domestic producers emphasize that eastern markets are important but do not have a decisive share in the total export turnover. Certainly, ceasing operations in Russia and Belarus and limiting exports to Ukraine involve losses.

In 2020, Poland was the 14th largest exporter of cosmetics in the world with a share of 3.0%, and cosmetics produced in our country, both by international companies that located their production here and by domestic entities, enjoy growing popularity in the world.

Recovering losses in foreign trade may be achieved by increasing sales on the domestic market, including in non-specialized stores, such as discounters, supermarkets and hypermarkets.

It is even more possible as there are currently 1.5 to 2 million refugees from Ukraine in Poland. Half of them are women aged 18-45 (53% with higher education) and a very large group of children.

The industry will surely experience an enlarged target group when it comes to cosmetics for women, children and teenagers. The problem, however, is exports, a large part of which has so far been delivered to Russia and Ukraine. “Now, in many companies, a huge part of the production must be redirected to new markets”, said experts from Nielsen IQ, Katarzyna Waszek and Barbara Nesterowicz, during their presentation entitled “The cosmetics market in Poland against the backdrop of the world – current state and forecasts” at the Cosmetics Industry Forum 2022.

Adrian Andrzejewski order