Markets to explore: Poland

From the partnership between ICE-Agenzia and Edizioni Dativo, the column for Italian packaging enterprises considering possible development abroad. ICE-Agenzia’s network of foreign offices gives periodic updates on the short and medium term growth of the packaging industry in various countries.

The Polish market, with 37 million consumers, has been a EU member country since 2004, and is obliged to introduce the euro without a specific deadline.
GDP per capita at 70% of the EU average is characterized by a sustained growth momentum and the domestic economy is more resilient to the international crisis also thanks to EU funding 2007-2013/2014-2020.
More specifically the importance of the food industry is driven by strong agricultural/fruit and vegetable production.
Specific factors contribute to the development of the sector in Poland:
- the strong presence of foreign capital, including international giants, found in consumer goods;
- deep penetration of retail.
In relation to packaging, the Polish market is mature, highly internationalized, characterized by aggressive competition and price sensitive. It must be considered that the per capita consumption of packaging in Poland, although in annual progression of 3.4%, amounts to about 60% of that of Western Europe.

Packaging: materials and outlet sectors
It is estimated that in 2016 the Polish packaging market will reach the following levels: 1.4% of the world market; 8.5 billion euros turnover from 8,000 producers, mainly SMEs.
The large companies, often controlled by foreign capital, operate mainly in the field of glass and metal packaging (cans) and industrial chemistry.
These data must be added the potential for the growing domestic demand, equal to 5-10% per annum, generated by producers of exported items (food, furniture, appliances, automotive and motorcycle parts and accessories, pharmaceuticals and cosmetics). Last but not least, packaging exports accounts for 15-20% of domestic production.
In Poland, the structure of materials for the packaging is prospected to be  fairly stable. Paper and cardboard (38.5%) is in first place, followed by plastics (38%), of slightly more than half of which flexible films. Taking a look at the  outlet sectors,  food  dominates(65%) followed by industrial and chemical articles (24%).

Machinery imports
The market is dominated by two leaders: Germany and Italy. All internationally recognized brands have been present in Poland for years. The local industry (often dealing with simple and/or auxiliary machines) is able to meet about 15% of domestic demand. The statistics confirm that the levels registered in 2008 remain a “peak” that is unmatched.
The fact is to be attributed not so much a crisis of the Polish market as to its saturation, as well as to outlet problems in other countries of large transnational groups that produce in Poland.
It should be noted that the figures for the first half of 2016 (see table 1), which, compared with the previous similar period of the year, are unstable and unfavorable to the German leadership, while imports from Italy continue to rise. Also worth examining subject raised by some local experts who were interviews who believe that the “Chinese quotes”, that is also on the increase, is actually higher than the official data as a part of the machinery/equipment formally imported from European suppliers is in fact produced in Asia.
 
Tariff obstacles and related
Given that Poland is an EU member country, trade with other European countries is free of any customs duty. Poland is covered by the EU Directives and/or EN standards.

Development prospects
If the Polish GDP continues to grow at the current rate (3.5%), in less than 10 years the levels of consumption of packaging will reach those of most advanced European countries.
Development prospects for the sector should be identified in the production of smaller packs (smaller families) and in “smart packaging”. Not to be overlooked the specific local opportunities, in terms of filling the gap retail packaging of fresh fruit and vegetable products and developments in the field of mass-consumed perishable products, which offer interesting spaces, especially for Italian imports.                                                 

The project is coordinated through ICE-Agenzia’s central headquarters in Rome, the Office of Industrial Technology, Energy and Environment directed by Ferdinando Pastore. Contact: Matteo Masini, tel 06 5992 9356 - [email protected]

Biuro w Warszawie
[email protected]  
www.italtrade.com/Polska