In recent years, we have been witnessing a dynamic development of the cosmetic industry in Poland, where the number of companies engaged in the production of cosmetics is steadily increasing. Statistics from the Central Statistical Office (GUS) indicate that in 2023, there were 1306 companies in the sector, with as much as 90 percent being micro and small enterprises. While many companies are experiencing growth trends, there are also signals of bankruptcies, possibly linked to the changing regulatory environment. According to GUS data, the number of cosmetic companies increased by 76 compared to 2022. It is worth noting that the industry is dominated by micro and small enterprises, indicating the sector’s attractiveness to investors. Nevertheless, there are challenges related to the financial condition of some companies. What challenges does the industry face in 2024?
Regulations and legislative pace
The variable regulatory environment, especially the introduction of new legal acts, poses a significant challenge for cosmetic companies. Adapting to numerous changes is becoming an increasingly significant challenge. Each change requires time for adaptation and increases costs, often adding additional administrative responsibilities.
Environmental challenges
The cosmetic industry faces difficulties related to environmental regulations and challenges associated with communicating with consumers in the context of ecological initiatives. The implementation of EU regulations related to the Green Deal poses a serious challenge for the sector.
Increasing significance of packaging
Companies are grappling with difficulties related to packaging regulations, including eco-design. Regulations aim at possible packaging reduction while simultaneously increasing the amount of information available to consumers on the packaging, with the constraint of limited possibilities for digitization.
Decrease in profitability
Rising inflation, increasing prices of raw materials and packaging, and the need to invest in environmentally friendly solutions impact the profitability of companies, forcing the industry to adapt to these challenging conditions.
The cosmetic industry in Poland is facing unique challenges, both environmental and regulatory. However, despite the difficulties, the sector maintains an optimistic outlook, seeing cosmetics not only as consumer products but also as a key to surviving challenging times.
Legal regulations impose a constant obligation on manufacturers to reformulate their products to align with changing legal norms, limiting the space for creative work and the creation of innovative products. However, MG Evolution®️ stands up to the task, creating new, unique formulations while staying current with legal norms and the highest standards.
We anticipate that 2024 will bring sustainable development, flexibility in adapting to changes, and further growth for the cosmetic industry in Poland. MG Evolution®️ looks forward optimistically to 2024, believing that the best is yet to come!
