Retail market of cosmetics in Poland 2014

Market analysis and development forecasts for 2014-2019

This publication provides a wide scope of market coverage including topics that range from Poland’s macroeconomic situation to the value of its retail cosmetics sector, key segments and high volume distribution channels. It names leading products and cosmetic brands and offers detailed analysis of influential trends and events on the market, in addition to carefully-calculated forecasts for the coming years.

 

Also featured: results of a special consumer survey that reveal the spending habits and product selection patterns most popular with cosmetics consumers in Poland.

 

This report provides all the latest market news on…

  • Current value of the market and description and valuation of key segments
  • Poland’s macroeconomic status and prognosis for the future
  • Cosmetic distribution in Poland: supermarkets, hypermarkets, health and beauty retail chains, pharmacies, discount retailers, direct sales and online retail operations are analysed and evaluated
  • Growth drivers and trends and their impact on market development
  • Health and beauty retail chains – leaders in terms of sales, expansion and size and value of operations, plans for future expansion
  • Consumer preferences and purchasing and spending habits with regard to cosmetic products
  • Predictions for development and growth to 2019.

 

Benefit from concise answers to these vital questions…

  • What is the current value of Poland’s retail cosmetics market?
  • How much is each of the key market segments worth?
  • Which are the most valuable cosmetics distribution channels for retail cosmetics in Poland?
  • What are the major players in Polish cosmetics retail planning in terms of future development?
  • Which established companies lead the market in terms of sales and total number of retail outlets?
  • How close is the competition among retail cosmetics companies in the Polish market?
  • How have recently observed trends affected the retail cosmetics market in Poland? What do experts predict for the next five tears?
  • Which cosmetics products rank most highly among Polish consumers?
  • Where do Polish consumers prefer to shop for cosmetics? How much are they willing to spend for these categories of products?

 

Readers benefit from exclusive features, such as…

  • Consumer feedback obtained through a dedicated survey including these key topics: top-selling products, most popular shopping venues for cosmetics, online sales and typical spending habits. Also included: consumer outlooks for private label products and opinions on various types of retailer promotions
  • Impact analysis of emerging trends on Poland’s retail cosmetics market over the next five years
  • Specific forecasts for development of the Polish retail market for cosmetics and its key segments from 2014-2019.

 

Selected brands analysed in this report...

Aflofarm Farmacja Polska, Aldi, alergia.med.pl, Alshaya, Amway, aptekaslonik.pl, Auchan, Ava Laboratorium, Avon Cosmetics Polska, Baltic Company, Biedronka, Bielenda, Blue Stop, Brodr. Jorgensen, Carrefour, CF Cefarm, Colgate-Palmolive Poland, Coty Polska, Dax Cosmetics, Dayli, Delia Cosmetics, Delitissue, Delko, Diparlux Magnon, dolce.pl, domzdrowia.pl, Douglas, Dr Irena Eris, Dr. Max, Drog Store, Drogerie Hebe.

 

Did you know...

  • The market sees a competitive upheaval leading to a downward price pressure. This results in poorer growth of the market’s value and is a drag on profitability in the sector.
  • Buyers choose good products priced as low as possible, while sales of private label goods grow rapidly; branded products are purchased mostly when available on promotional offers.
  • Discount store chains, chains of health and beauty stores and online stores report the strongest growth.
  • 2013 saw strong sales of, in particular, make-up cosmetics and shower gels, while sales of hair care and hair styling cosmetics, deodorants and shaving cosmetics declined.
  • The growth of cosmetics sales in terms of volume exceeded the growth in value terms.
  • 2014 will see continued uncertainty in the market as to the economic improvement, despite a stronger macroeconomic outlook. As a result, consumers will not be willing to spend more money on cosmetics yet.
  • Discount stores and health and beauty store chains will continue to grow the fastest.

Extract from this report

  • Health and beauty stores are the largest distribution channel for cosmetics in Poland; they are also a channel which continues to grow in strength. According to our estimates, in 2013, they contributed 43.4% of sales generated by the market, which translated into PLN 8.7bn (€2.1bn) worth of sales.
  • The segment follows a two-track path of development. One is represented by chains, headed by the market leader Rossmann, which are quickly gaining significance, the other is represented by traditional health and beauty stores that are doing worse and worse, with their number and market share waning every year.

Market commentary by expert

 

A typical characteristic of the Polish cosmetics market is the huge popularity of domestic brands, whose quality and packaging matches the standards of products offered by international manufacturers. Domestic brands attract buyers based on reasonable prices and wide availability. Ziaja is the most valuable Polish brand.

Innovation is of great importance to the industry. Companies add new lines to their product portfolios on a regular basis. They use novel ingredients, diversify the product mix and adjust lines to cater to various customer segments. Some manufacturers generate up to 30% of annual sales volume from innovative products.

 

Patrycja Nalepa, Senior Retail and FMCG Market Analyst

 

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Table of contents

  1. Methodology      9
  2. Executive summary      15
  3. General economic situation in Poland      23
    1. Overview of the situation in 2013       23
    2. Forecast for 2014       24
    3. Medium-term outlook: 2015-2019       25
  4. Findings of a survey of consumers purchasing cosmetics      27
    1. Summary      29
    2. Place where cosmetics are purchased      31
      1. Place for purchasing cosmetics – selection criteria      33
      2. Place where cosmetics are purchased, by product category and distribution channel      34
      3. Place where cosmetics are purchased – retailers       35
      4. Buying from consultants and through the online channel      36
      5. Purchases in health and beauty stores      38
      6. Purchases in perfumeries      40
    3. Types of cosmetics purchased and shopping habits      42
      1. Purchases of private-label cosmetics and perception of private-label brands       46
      2. Purchasing habits      48
      3. Preferred forms of promotion      49
      4. Brand awareness      50
    4. Spending on cosmetics on a monthly basis      52
      1. Acceptable prices of most often purchased cosmetics from selected categories      53
  5. Value of the cosmetics market      57
    1. Overview of the market situation – trends       59
  6. Major cosmetics retailers      67
    1. Profiles of key health and beauty chains      70
      1. Rossmann      70
      2. Super-Pharm      71
      3. Natura      72
      4. Sephora      73
      5. Douglas      74
      6. Hebe      75
      7. Yves Rocher      76
      8. Dayli      77
  7. Distribution channels      79
    1. Health and beauty stores      82
      1. Consolidation of traditional health and beauty stores       85
      2. Overview of health and beauty store chains      86
    2. Large-area stores      89
    3. Direct selling       93
    4. Pharmacies      94
    5. Online sales      96
    6. Small grocery stores and general stores      99
  8. Overview of selected product segments      101
    1. Value and growth of the main product categories      101
    2. Hair care cosmetics      102
      1. Shampoos and conditioners      103
      2. Hair dyeing products      104
      3. Hair-styling products      105
    3. Face care and body care cosmetics      105
    4. Personal hygiene cosmetics      106
    5. Make-up cosmetics       107
    6. Luxury cosmetics       108
    7. Sanitary protection articles      110
  9. Cosmetic private labels      111
    1. Overview of private-label cosmetics       113
      1. Health and beauty chains      114
        1. Rossmann      114
        2. Drogerie Natura      115
        3. Douglas      115
        4. Sephora       116
        5. Yves Rocher      117
        6. Super-Pharm      117
        7. Drogerie Jasmin      117
      2. Hypermarkets      118
        1. Auchan      118
        2. Kaufland      118
        3. Tesco      119
        4. Carrefour      119
      3. Discount stores      120
        1. Biedronka      120
        2. Lidl      120
        3. Netto      121
        4. Aldi      122
  10. Advertising activity in the cosmetics industry      123
    1. Top 10 advertisers and top 10 advertised brands of cosmetics      124
    2. Advertising of product groups      127
    3. Advertising activity of retailers in the cosmetics industry      128
  11. List of graphs      131
  12. List of tables      134
  13. About PMR      136

List of graphs

  1. Value (PLN m) and growth (%) of the cosmetics market in Poland, 2010-2019      17
  2. Value of the cosmetics market in Poland (%), by distribution channel, 2013      19
  3. Fastest-growing retail distribution channels for cosmetics in Poland (%), 2012-2016      20
  4. Places to shop for cosmetics in Poland, by sex (%), January 2013 and January 2014      32
  5. Significance of selection factors for places to shop for cosmetics in Poland (%), January 2014      33
  6. Places to shop for cosmetics in Poland, by category (%), January 2014      34
  7. Retail outlets where respondents most often buy cosmetics (%), January 2013 and January 2014      35
  8. Percentage of respondents who bought cosmetics from consultants of cosmetic companies in 2013 (%), January 2014      36
  9. Most popular brands of cosmetics among consumers buying cosmetics from consultants of cosmetic companies (%), January 2014      37
  10. Reasons for not buying cosmetics from consultants of cosmetic companies (%), January 2014      37
  11. Percentage of respondents who bought cosmetics online in 2013 (%), January 2014      38
  12. Health and beauty stores where respondents most often buy cosmetics (%), January 2013 and January 2014      39
  13. Non-cosmetic products most often purchased in health and beauty stores (%), January 2014      40
  14. Percentage of respondents buying cosmetics in Douglas, Sephora and Marionnaud perfumery chains (%), January 2014        41
  15. Types of cosmetics purchased in Douglas, Sephora and Marionnaud perfumery chains (%), January 2014      41
  16. Motivations for purchases of cosmetics in Douglas, Sephora and Marionnaud perfumery chains (%), January 2014      42
  17. Respondents who bought at least one item of the cosmetics category, by sex (%), January 2014      43
  18. Assessment of relevance of individual criteria when selecting cosmetics (%), January 2014      44
  19. Cosmetics purchased by women, by popularity (%), January 2014      45
  20. Cosmetics purchased by men, by popularity (%), January 2014      45
  21. People for whom respondents buy cosmetics (%), January 2014      46
  22. Share of consumers buying private-label cosmetics (%), January 2014      46
  23. Frequency of purchases of cosmetic private-label brands, by category (%), January 2014      47
  24. Comparative assessment of private-label cosmetics with respect to corresponding brand-name products (%), January 2014      48
  25. List of statements describing consumers’ shopping habits (%), January 2014      49
  26. Most popular forms of promotion used when buying cosmetics (%), January 2014      50
  27. Unaided and aided brand awareness for cosmetics available on the Polish market (%), January 2014      51
  28. Assessment of average growth in spending on cosmetics in 2013 as compared to 2012 (%), January 2014      52
  29. Average monthly spending on cosmetics, by price range (%), January 2014      53
  30. Average monthly spending on women’s cosmetics, by price range (%), January 2014      54
  31. Value (PLN m) and growth (%) of the cosmetics market in Poland, 2010-2019      58
  32. Value of the cosmetics market in Poland (%), by distribution channel, 2013      80
  33. Fastest-growing retail distribution channels for cosmetics in Poland (%), 2012-2019      80
  34. Shares of the fastest-growing distribution channels on the cosmetics market in Poland (%), 2010-2019      81
  35. Sales of cosmetic products in health and beauty stores in Poland, by chain and non-chain stores (PLN m), 2010-2019      83
  36. Growth of sales for cosmetic products in health and beauty stores in Poland, by chain and non-chain stores (%), 2010-2019       84
  37. Market shares of health and beauty stores in Poland, by chain and non-chain stores, 2010-2019      84
  38. Value (PLN m) and growth (%) of cosmetics sales in hypermarkets in Poland, 2010-2019      90
  39. Value (PLN m) and growth (%) of cosmetics sales in supermarkets in Poland, 2010-2019      91
  40. Number of large-area stores in Poland, by format, 2010-2014      91
  41. Value (PLN m) and growth (%) of cosmetics sales in discount stores in Poland, 2010-2019      92
  42. Value (PLN m) and growth (%) of direct sales of cosmetics in Poland, 2010-2019      93
  43. Value (PLN m) and growth (%) of cosmetics sales in pharmacies in Poland, 2010-2019      95
  44. Shares of purchased dermocosmetics, by category (%), January 2014      96
  45. Value (PLN m) and change (%) of online cosmetics retail in Poland, 2010-2019      97
  46. Value (PLN m) and growth (%) of cosmetics sales in grocery and general stores in Poland, 2010-2019      99
  47. Place for buying hair styling and hair care cosmetics, by value (%), 2012-2013      103
  48. Growth of private labels and branded products in the chemical-cosmetic basket in Poland, by distribution channel (%), 2013      112
  49. Total advertising spending in the cosmetics industry in Poland (PLN bn), 2011-2013      123
  50. Top 10 advertisers in the cosmetics industry in Poland (%), 2012      124
  51. Top 10 advertisers in the cosmetics industry in Poland (%), 2013      125
  52. Top 10 advertised brands in the cosmetics industry in Poland (%), 2012      126
  53. Top 10 advertised brands in the cosmetics industry in Poland (%), 2013      126
  54. Advertising spending of the hygiene and care segment in Poland (%), by product group, 2013      127
  55. Structure of and change in cosmetic retailers’ advertising spending in Poland (%), by retailer type, 2012-2013      128
  56. Structure of advertising spending of health and beauty store chains in Poland (%), 2013      129
  57. Advertising spending of retailers operating in the cosmetics industry in Poland (PLN m), 2012-2013      130
  58. Change in advertising spending of key cosmetics chains in Poland (%, y-o-y), 2013      130

 

List of tables

  1. Key macroeconomic indicators for Poland, 2010-2016      15
  2. Key macroeconomic indicators for Poland, 2010-2019      26
  3. Average monthly spending on cosmetics, January 2014      52
  4. Average monthly spending of female respondents on women’s cosmetics (PLN), January 2014      53
  5. Average monthly spending on men’s cosmetics (PLN), January 2014      54
  6. Average monthly spending on men’s cosmetics, by price range (%), January 2014      55
  7. Overview of the situation on the cosmetics retail market in Poland, 2010-2019      58
  8. Growth factors for the cosmetics market in Poland, 2013-2019      59
  9. General information on top 10 cosmetics retailers in Poland      68
  10. Market shares of top 10 cosmetics retailers in Poland (%), 2010-2014       68
  11. Sales revenues of top 10 cosmetics retailers in Poland (PLN m), 2010-2014       69
  12. Sales growth of top 10 cosmetics retailers in Poland (%), 2011-2014      69
  13. Number of stores run by top 10 cosmetics retailers in Poland, 2010-2014       69
  14. Per-store sales of top 10 cosmetics retailers in Poland (PLN m), 2010-2014      70
  15. Rossmann chain in Poland: sales and number of stores, 2010-2014      70
  16. Super-Pharm chain in Poland: sales and number of stores, 2010-2014      71
  17. Drogerie Natura chain in Poland: sales and number of stores, 2010-2014      72
  18. Sephora chain in Poland: sales and number of stores, 2010-2014      73
  19. Douglas chain in Poland: sales and number of stores, 2010-2014      74
  20. Hebe chain in Poland: sales and number of stores, 2011-2014      75
  21. Yves Rocher chain in Poland: sales and number of stores, 2010-2014      76
  22. Dayli chain in Poland: sales and number of stores, 2010-2014      77
  23. Growth of major distribution channels in the cosmetics market in Poland (%), 2010-2019      81
  24. Shares of major distribution channels in the cosmetics market in Poland (%), 2010-2019      82
  25. Number of health and beauty stores in Poland, by chain and non-chain stores, 2010-2014       84
  26. Top 10 chains vs. other chains – comparison of sales growth, 2011-2014      85
  27. Largest health and beauty chains in Poland by number of stores: number of stores 2012-2014, number of products, average store area, form of organisation      87
  28. Comparison of Sephora and Douglas chains in Poland, 2010-2014      89
  29. Avon’s and Oriflame’s revenues in Poland (PLN m), 2010-2014      94
  30. Selected online stores selling cosmetics in Poland, by sales value (PLN m), 2011-2013       98
  31. Main categories of cosmetics in Poland: sales value, structure and growth, 2012-2013      102
  32. Hair care cosmetics market in Poland, by segment, 2012-2013      102
  33. Selected distributors of premium and selective cosmetics in Poland, by sales value (PLN m), 2012      109
  34. Value and volume shares of private-label brands in individual categories of cosmetics and hygiene articles and change in Poland, 2011-2012      113
  35. Cosmetic private labels sold by Rossmann health and beauty stores, 2014      114
  36. Cosmetic private labels sold by Drogerie Natura health and beauty stores, 2014      115
  37. Cosmetic private labels sold by Sephora health and beauty stores, 2014      116
  38. Cosmetic private labels sold by Biedronka discount stores, 2014      120
  39. Cosmetic private labels sold by Aldi discount stores, 2014      122
  40. Top 10 advertisers in the cosmetics industry in Poland, by value of advertising spending (PLN m) and spending growth (%, y-o-y), 2013      125
  41. Top 10 brands in the cosmetics industry in Poland, by value of advertising spending (PLN m) and spending growth (%, y-o-y), 2013      127