Poland continues to be the largest producer of home appliances in the European Union, but its position is being challenged by strong competition from third countries, primarily China. The past two years have been difficult for the industry, with ongoing threats emerging. However, as industry representatives emphasize, there is light at the end of the tunnel. Home appliance manufacturers are hopeful about the positive impact of deregulation, including in environmental regulations.
In 2023, Poland produced 26 million home appliances, including over 23 million large appliances. This result is comparable to the situation in 2023. The market value has remained nearly unchanged, but sales of small appliances increased by 16%, while large appliances saw a 6% year-over-year rise.
“After the COVID period, the home appliance industry experienced a decline in production and sales. During the pandemic, we saw high sales as consumers spent more time at home and invested in renovations. Unfortunately, a downturn followed as both European and Polish consumption declined, leading to a significant drop in production. Fortunately, we now see some signs of recovery, and 2024 suggests that we may be rebounding,” says Wojciech Konecki, President of APPLiA Polska, the association of home appliance employers, in an interview with Newseria.
Poland’s Home Appliance Industry at a Crossroads
Poland is home to 35 factories, employing 100,000 people both directly and indirectly. Between 2020 and 2024, the industry invested over 8 billion PLN in Poland. According to public declarations, the number of factories in Poland is expected to decrease from 35 to 32 by the end of 2025. Despite this, Poland maintains its position as Europe’s leading home appliance producer, with a 36% market share. In specific categories such as washing machines, dryers, and dishwashers, Poland holds even higher shares of 52% and 59%, respectively.
“I hope we maintain this position, although we face strong competition from countries like Turkey, Romania, and China,” says Konecki. “Germany is our biggest export market, followed by the UK, France, and Italy. However, we closely monitor Germany because German companies have made significant investments in our sector, particularly in production and R&D. With over 85% of our production destined for export, fluctuations in German consumer sales heavily impact our production, employment, and overall prosperity in Poland. We are cautiously optimistic and believe that the second half of this year will bring some recovery in this crucial market after two difficult years.”
Rising Imports and China’s Dominance
Currently, 49% of large home appliances sold in the EU come from non-EU imports, and this share continues to rise. Similarly, Poland has seen a significant increase in imported appliances. Last year, the import rate grew by 13% year-over-year, with Chinese products leading the way at a 54% increase compared to 2023.
China remains the undisputed leader in large home appliance exports, holding a 35% market share. Poland ranks second with 9%, closely followed by Turkey and Germany, each with 8%. However, Polish factories excel in specific categories, leading in dryers with a 31% market share and dishwashers at 19%.
“We once believed that large appliance imports wouldn’t pose a major threat due to the size and weight of these products. However, imports from Korea, Japan, Turkey, and especially China have now become highly significant, surpassing 30% of Poland’s domestic sales. We acknowledge that competition is fierce and will continue to grow. This is why we are in discussions with the government to support investment in Poland and boost domestic production in every possible way,” states Konecki.
Challenges and Industry Postulates
Despite cautious optimism, the industry still faces significant challenges and emerging threats. Among them are an uncertain business environment, labor shortages in factories, unstable demand, and unfair imports.
“We must be vigilant about supply chains, especially after what we experienced during the COVID pandemic. Workforce availability is another key concern, as some regions in Poland are already experiencing shortages. We are investing in robotics and automation, but the competition remains intense. Currently, we are in discussions with government ministries about deregulation, as certain laws and regulations place a heavy burden on the industry. We seek relief from some of these restrictions, including environmental regulations,” Konecki emphasizes.
Among the industry’s key demands for the Polish presidency of the EU Council are expanding the Carbon Border Adjustment Mechanism (CBAM) to include home appliances produced in Poland, eliminating unfair imports through online platforms, streamlining regulatory frameworks, and strengthening the EU single market. Additionally, facilitating the employment of foreign workers remains an important issue for the industry.
