Poland’s cosmetics market to grow 3.5% to PLN 9 bln in 2006.

Poland's cosmetics and perfumes market grew by 3.1% in 2005 to reach 8.7 billion Polish Zlotys (EUR 2.23 billion) in 2005, research company PMR revealed in a report on non-food retail*.

According to PMR, Poland's cosmetics market growth will carry on by 3.5% in 2006 to reach PLN 9 billion (EUR 2.3 billion). The retail market growth might be even stronger in 2007 (4 - 5%), provided that the Polish government lifts the excise tax on cosmetics. “Poland is the only country in Europe still enforcing an excise tax on cosmetics, which current rate is at 10%,” the company said in a release. “This contributes to the situation in which prices of cosmetics, primarily in the luxury segment, are 10-20% higher than on other Western European markets.” According to Patrycja Ciosek, PMR analyst and co-author the report, should the government eventually scrap the excise tax, as expected in January 2007, prices of cosmetics would be pushed down and the volume and value of sales increase subsequently.
Source:www.beauty-on-line.com