Poland has one of the most stable economies in Eastern Europe, and the potential of its beauty market has long been discussed. However, growth in the category has been slow in recent years. Prestige sales have been seeing smaller increases than mass, and prestige brands only account for an estimated 11% to 12% of total beauty sales in Poland. “The market for luxury perfumes and cosmetics in Poland is relatively small, and has been growing very slowly,” said a spokesperson for Dr. Irena Eris Group, a luxe cosmetics brand. “Nevertheless, we have seen interest among consumers in premium-sector products.”

The prestige cosmetics market is anticipated to grow by 6% between 2014 and 2017, to reach PLN525m ($141 million), according to KPMG’s latest report on the luxury market in Poland. Growth for 2015 is expected to come in at around 2% to 3%, according to industry sources. In 2014, the market saw growth of 1.9% for sales of $4.48 billion, according to Euromonitor International. “The Polish market is developing, but it will never be a big market,” said Michal Missala, co-owner of Warsaw-based niche perfumery chain Quality Missala Perfumeria. “We are still not rich as a society, so the Poles as a whole do not spend a lot on luxury goods.”

But despite these slow growth predictions, industry players continue to believe in the market’s future. “Poland has lots of potential in the short term; it’s part of the EU, people are educated, the state is organized and stable, and you have plenty of room for growth as the market catches up,” said Benelux Yann Masson, Sisley Regional Director for Eastern Europe. “We believe that within five years we can double our sales. It is one of the countries where we think we have real potential.”

To read BW Confidential’s full report on Poland’s beauty market click here.