This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Family-owned cosmetics company Ziaja wants to grow faster than the cosmetics market, which is currently expanding at a double-digit pace. The company is investing in production capacity, with its investment plan exceeding PLN 200 million (around EUR 46 million). It is also looking for attractive acquisition targets – both in Poland and abroad.
Ziaja was founded in 1989. At the time, pharmacists Zenon and Aleksandra Ziajowie began producing olive cream in their home garage, using an ice cream machine. To this day, the product remains one of the company’s biggest commercial successes.
Will Ziaja remain a family-owned business?
“Throughout the company’s history, we have received acquisition offers, including some that were highly attractive financially, with valuations reaching levels we could not have imagined before. The offers came from both Polish companies and international players. However, we see no need to sell the business or step away from running it. We have ideas for further growth and want to pursue them,” says Bartosz Ziaja, vice-president of the company.
Ziaja bets on an omnichannel sales strategy
The company closed 2025 with revenue of around PLN 500 million (approximately EUR 115 million).
“Profit was slightly lower than a year earlier [in 2024, net profit amounted to PLN 99.79 million (around EUR 23 million) – editor’s note], mainly due to rising costs. This was driven by higher raw material prices, labor costs and elevated inflation. Another important factor was market uncertainty linked to the ongoing war in Ukraine. Ultimately, we want to grow faster than the market. However, 2026 is also proving challenging. The situation is being complicated by new geopolitical tensions that are disrupting supply chains. So far, this has not yet been reflected in retail prices, partly due to government measures such as reductions in fuel excise duty and VAT. However, cost pressures related to raw material prices are increasing and will affect the consumer market. On the one hand, customers are unwilling to accept price increases; on the other, suppliers are forcing them through, making it significantly harder to maintain profitability,” says Bartosz Ziaja.
The company is focusing on an omnichannel sales model, covering both traditional retail and non-chain channels, as well as e-commerce.
“The world is moving towards digitalization, and as generational change takes place, the importance of online channels will continue to grow. At the same time, we understand that omnichannel sales is the key concept today, because a presence across all channels is essential for any company that wants to build brand recognition,” says Bartosz Ziaja.
Ziaja currently operates 160 company-owned brick-and-mortar stores in Poland and abroad, including locations in Prague and Budapest.
“For now, it is difficult to talk about further expansion in this area. Such decisions are based on market analysis and observations of consumer behavior. As a mass-market manufacturer, we need to be present across multiple sales channels. Our own stores primarily serve a brand-building function. We view them as marketing spaces,” says Bartosz Ziaja.
The company currently operates two production facilities in Kolbudy near Gdańsk. One, covering around 2,000 sq m, is currently undergoing redevelopment. The second is located on a larger plot, with a built-up area of approximately 25,000–30,000 sq m. The facility occupies a site of around 6 hectares.
“Our production capacity is fully utilized, which is why we are currently carrying out a major investment program,” adds Bartosz Ziaja.
Investment program worth more than PLN 200 million.
Expert's perspective
Polish cosmetics market valued at PLN 18.5 billion
The category is growing not only in terms of total spending but also by the number of products purchased. It remains one of the segments that effectively attracts consumers and increases shopping volumes.
Within the cosmetics basket, the largest value shares belong to face creams (8.7%), shampoos (6.8%), deodorants (6.6%) and perfumes (6.5%). Among the key categories, face creams recorded the strongest growth momentum.
Across the entire FMCG sector, discount retailers maintain the largest market share (44.4%). However, in the cosmetics basket, drugstores dominate, accounting for 50.5% of consumer spending. Discount retailers represent 25.3% of the category, while online retail accounts for 7.4%. The strongest growth in consumer spending was recorded in e-commerce, up 10.1%, and drugstores, up 9.5%. At the same time, hypermarkets saw spending decline by 6.5%.
Polish cosmetics companies
Since the beginning of its operations, Ziaja has focused on producing affordable cosmetics.
“Given both our pharmaceutical background and our approach to our work, we want to serve people – their skin and their bodies. Quality of life, health and wellbeing mean that proper care has become a very important part of everyday life. That is why we offer products at reasonable prices while maintaining high quality standards. They undergo dermatological and clinical testing. We want customers to experience the genuine value of our products, rather than simply the effects of marketing campaigns,” says Bartosz Ziaja.
However, the company faces growing pressure from increasing foreign competition.
One example is K-beauty, or Korean cosmetics, which are already widely available on the market. Companies from China are becoming increasingly active in entering the EU market – not only with basic products and raw materials, but also by offering contract manufacturing services. In the future, they may introduce their own products under their own brands.
“Companies from other countries often operate under different cost structures and regulatory conditions, which can make it easier for them to enter our market. As a result, we are seeing more competitors not only from Poland and the European Union. One example is K-beauty, or Korean cosmetics, which are already available on the market. Chinese companies are becoming increasingly active in the EU – not only with basic products and raw materials, but also with contract manufacturing offers. In the future, they may launch their own products under their own brands. We are also increasingly seeing reports about the development of the cosmetics segment in India,” admits Ziaja’s vice-president.
Ziaja in South Korea
The company is also present on global markets. Numerous stories surround its operations in South Korea. The Goat’s Milk product line is reportedly particularly popular, with Korean tourists said to have been buying its products in large quantities for years.
“It is true that our brand is recognized in South Korea and has been operating in that market for at least 20 years. Total exports currently account for slightly less than one-third of our overall sales. However, South Korea represents a relatively small share of our international sales,” admits Bartosz Ziaja.
The company’s most important export markets remain European Union countries, where operations are facilitated by common regulations and fewer barriers.
When it comes to potential acquisitions, we are monitoring both the Polish and European markets. The most important factors for us are the potential target’s geographical location and its available production capacity.
“Our most important markets are Czechia, Spain, Turkey and Vietnam. The company’s strategic goal is to continue increasing exports so that their share of revenue exceeds that of domestic sales. However, we want to achieve this through stronger international growth, not through a decline in sales in Poland. Polish brands have the opportunity to continue expanding and building recognition, although this requires time. I would like us to become a European company within a few years,” says Bartosz Ziaja.
Is the market heading for consolidation?
The structure of Poland’s cosmetics market is somewhat unusual compared with the rest of Europe. Around 75% of its value comes from Polish brands.
“In Germany, a country of around 86 million people, there are slightly more than 400 cosmetics companies. In Poland, with a population of around 36 million, there are approximately 1,000. Of course, Germany is a more developed economy, so differences between our markets need to be taken into account. Nevertheless, this comparison highlights the scale of entrepreneurship in Poland. It does not mean, however, that all of these companies will be able to maintain their market position,” says Bartosz Ziaja.
Will Ziaja take part in the consolidation of the cosmetics market?
“When it comes to potential acquisitions, we are monitoring both the Polish and European markets. The most important factors for us are the potential target’s attractive geographical location and its available production capacity. So far, however, we have not found an organisation with which we would like to build the future together – whether through an acquisition, an equity exchange or the creation of a consortium. We came very close to completing two transactions, but ultimately, for various reasons and due to limitations on the other side, they were not finalised,” adds the executive.
Several years ago, Ziaja even considered building a factory outside the European Union.
“However, the country we were considering experienced political and social changes. Looking back today, it is a good thing that we did not take that risk, as it could have resulted in serious problems for us. For now, we are putting the idea of building a new factory on hold, but we are looking for a company to acquire. Our financial capacity ranges from tens to several hundred million zlotys (from several million to several dozen million euros),” says Bartosz Ziaja.
Expert's perspective
Cosmetics are about more than just looking better
Consumers in Europe do not view their personal care routines merely as part of their daily habits. Eighty-eight percent say these routines have a positive impact on their current wellbeing and also support healthy ageing. Poles approach the issue with somewhat greater caution – 66% of respondents see such an impact. These findings place cosmetics within a broader trend of proactive health and wellbeing management.
Challenges facing the cosmetics industry
The cosmetics industry is currently operating in an environment of increasingly complex regulations.
“On the one hand, new rules are being introduced to improve consumer safety, such as the requirement to identify allergens in cosmetic product ingredients. At the same time, some of these substances occur naturally, for example in food products such as basil, where exposure levels may be higher than in cosmetics. The growing number of ingredients used in cosmetic products is making regulatory requirements increasingly complex,” says Bartosz Ziaja.
“Instead of focusing on technological development and innovation, around 60% of our time is spent meeting legislative requirements.”
At the same time, new obligations are emerging, including those related to reducing the number of packaging materials under PPWR (Packaging and Packaging Waste Regulation), the European Union’s regulation on packaging and packaging waste. Reconciling different legal requirements can prove challenging.
Excessive regulation and inconsistent rules could encourage companies to move production outside the European Union. In the longer term, this could lead to job losses and limit opportunities for economic growth.
“A significant share of companies’ resources is being allocated to adapting to changing regulations. Instead of focusing on technological development and innovation, around 60% of our time is spent complying with legislative requirements. I am a strong supporter of the European Union. However, I see a problem with overregulation, which may weaken the competitive advantages of companies operating within the EU,” says Bartosz Ziaja.
At the same time, various EU-wide horizontal policies are overlapping, including those related to environmental protection, pollution reduction and the promotion of renewable energy.
“As a result, we may see product life cycles becoming shorter, which in turn leads to increased waste generation and greater environmental pressure, even though the purpose of these regulations is to improve safety and environmental conditions,” says Bartosz Ziaja.
Key Takeaways
- Ziaja closed 2025 with revenue of around PLN 500 million (approximately EUR 115 million). The company wants to grow faster than the cosmetics market, which is recording double-digit annual growth.
- Ziaja is monitoring both the Polish and European markets for potential acquisitions. The company places the greatest importance on an attractive geographical location of a potential acquisition target and its available production capacity. Ziaja can allocate from several dozen to several hundred million zlotys (from several million to several dozen million euros) for an acquisition.
- Ziaja aims to become a European company within the next few years. Its strategic goal is to continue increasing exports so that their share of revenue exceeds that of domestic sales. However, this growth is expected to come from expanding international sales rather than from a decline in the Polish market.