PMR: Record-breaking cosmetics market growth in 2022

PMR forecasts that in 2022 the cosmetics market in Poland will grow by 6.1% YoY, to around PLN 27.7bn. This will be the strongest increase since 2009. Several factors are conducive to such high market growth, including the lack of a significant impact of the coronavirus pandemic on the behaviour of cosmetic buyers and no anticipated restrictions related to possible further epidemic surges, rising inflation resulting in higher prices of goods and, at the same time, overall expenditure on cosmetics, or the influx of refugees from Ukraine caused by Russia’s invasion of that country. These are the conclusions derived from the latest PMR report “Cosmetics retail market in Poland 2022. Market analysis and development forecasts for 2022-2027”.

There is still potential for the cosmetics market, which is related, among other things, to the growing consumer awareness and increasing disposable income. This results in changes in consumers’ cosmetic shopping habits, translating into increased spending on these products. Although price is still one of the important factors when buying cosmetics, and Poles are keen to take advantage of special offers, it is no longer the determining factor. Ever larger proportion of consumers pay attention to the product quality or efficacy.

According to PMR’s forecasts, the cosmetics market in Poland will continue to grow in the coming years (2023-2027) at a compound annual rate of 3-5%, which will be slightly higher than the rate observed in the past five years.

Where to buy cosmetics?

In the future, the cosmetics retail market will focus on two channels: health and beauty stores, as the first choice for purchasing these products, and the online channel. Online sales will be an alternative to health and beauty stores: consumers will be able to buy online products unavailable in offline stores or, taking an omnichannel approach, they will turn to purchases at online stores of major health and beauty chains. According to a survey conducted by PMR, 83% of Poles who buy cosmetics usually do so in offline health and beauty stores, while 37% of consumers choose online stores. According to PMR’s forecasts, both of these channels will reach in total an over 57% share in the entire cosmetics market by 2027.

The Young and Aspiring are the largest consumer segment in the cosmetics market

PMR segmented cosmetics shoppers into five distinctive groups with different shopping behaviour: Young and Aspiring, Small-Towners, Aware and Active, Economic Minimalists and Mature and Conservative.

The largest segment (in terms of number) is the Young and Aspiring group, accounting for more than a fifth of the consumers. These are more often women (54%) and younger people, aged 18-34 (37%). These consumers often choose specialised cosmetics and products for allergy sufferers. They read cosmetic reviews before purchase and try to keep abreast of trends. Compared to all the other groups, they most often they tend to buy cosmetics on special offers or wait for seasonal sales.

They are also socially aware customers who seek to make informed decisions when buying cosmetics. They care about whether a cosmetic company conducts animal tests and engages in CSR activities. Of all the segments, these consumers spend most of their leisure time pursuing their interests, e.g. listening to podcasts or playing sports. They declare they are physically active at least once every fortnight (58%).

More information can be found in the PMR report: “Cosmetics retail market in Poland 2022”