Home appliances market analysis in Poland
The household appliances industry is one of the largest sectors of Polish industry, placing the country among the leading exporters in this field. However, our analysis of the home appliances market in Poland showed a significant decline in both production and sales of appliances in 2022. Rising inflation and energy costs pose many challenges for manufacturers.
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See the scan catalogueThe home appliances market is one of the largest and fastest-growing sectors in Poland. Although sales weakened during the Covid-19 pandemic, the losses were quickly recovered. In 2020, the market reported a profit of 15%.
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| Year | Production (million units) |
|---|---|
| 2020 | 30 |
| 2021 | 35 |
In 2021, the value of the market grew by 19%, to almost PLN 10.8 bn. Poland produced 35 m home appliances that year, including 27 m large appliances (3 m more than a year earlier). It was the largest year-on-year increase to date. The main drivers were more frequent renovations and more time spent at home, which encouraged people to replace many appliances with newer models. In 2021, Poles spent a total of PLN 13.6 bn on home appliances, 15% more than a year earlier. Despite increased demand, shops struggled with supply problems, caused among other things by the lockdown in China and difficult access to components.
| Indicator | Value |
|---|---|
| Market value | almost PLN 10.8 bn |
| Year-on-year growth in market value | 19% |
| Home appliance production | 35 m units |
| of which large appliances | 27 m units |
| Poles' spending on home appliances | PLN 13.6 bn |
| Year-on-year growth in spending on home appliances | 15% |
This year's results are unlikely to be as positive. Rising production costs and the end of the renovation wave have significantly slowed sales. Since June this year, domestic demand has been falling. At first it was 2% lower than in the same period of the previous year; by July it was down 15%.
A slowdown in appliance production is also already visible. The market analysis showed that in July 2022 alone, 1.45 m units went on sale, 30% fewer than a year earlier. Compared with the same period of 2021, production from January to May fell by 12.5%, by June by 15%, and by July by 17%.
| Period | Production decline (%) |
|---|---|
| January–May | 12.5 |
| January–June | 15 |
| January–July | 17 |
01
What home appliances are made in Poland?
Polish industry focuses on large home appliances: washing machines, dishwashers and tumble dryers account for half of production, and in these categories Poland holds 60% of the European market.
Polish industry is strongly focused on the production of large home appliances. Washing machines, dishwashers and tumble dryers account for half of production. In these categories Poland holds as much as 60% of the European market. Including ovens and refrigerators, Poland accounts for 30% of the European market by value and 40% by volume.
Production and sales of kitchen appliances, cookers, microwaves and dishwashers are slowly growing in the Polish market. A decline can be seen in the production of fridges and ovens: in June 2022, 40–50% fewer were produced than a year earlier.
02
How is inflation affecting the home appliances market in Poland?
Rising inflation is lowering demand while higher raw material and electricity prices push up production costs; Amica, for example, recorded a loss of PLN 7.2 m in Q2 2022.
The largest Polish manufacturers are currently struggling with a crisis. Rising inflation and, as a result, lower market demand are changing the business strategies of many companies. Higher prices of raw materials such as steel do not help either, and nor do high electricity bills: some suppliers have raised prices by as much as 360%.
Many manufacturers are trying to reduce losses and protect margins. Although companies have raised prices, production costs remain high and many businesses are making losses. Amica recorded a quarterly loss for the first time in more than 10 years. In Q2 2022 it amounted to PLN 7.2 m. By comparison, a year earlier the profit was PLN 21.1 m. Whirlpool, in turn, reported that from May to July total sales in Europe, Africa and the Middle East fell by 19.5%, to PLN 1.1 bn.
03
How many home appliances does Poland export?
Poland exports almost 85% of the appliances it produces, and in 2021 as many as 26 m large appliances worth a total of EUR 5.3 bn went to foreign markets.
Poland leads in home appliance exports: in 2021 it ranked first in Europe, according to World Integrated Trade Solution. Poland exports almost 85% of the appliances it produces, 90% of which are large appliances. It also accounts for 39% of appliance production in the European Union. In 2021, as many as 26 m large appliances worth a total of EUR 5.3 bn went to foreign markets.
Germany is the largest destination: exports there were worth EUR 1.4 bn last year (26.3% of total home appliance exports). Polish appliances are also popular in France (10.1%), the United Kingdom (9.3%) and Italy (8.4%). Despite past growth, a crisis now seems to be approaching. Lower demand in the West is already visible. Exports to Germany fell by 9%, to France by 13%, and to the United Kingdom by as much as 16%.
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| Country | Share of exports (%) |
|---|---|
| Germany | 26.3 |
| France | 10.1 |
| United Kingdom | 9.3 |
| Italy | 8.4 |
Author: Julia Misiewicz
Sources:
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Source: MarketHub, "Home appliances market analysis in Poland", markethub.pl, 11.2022