Poland’s Appliance Sector Faces Rising Pressure From Non-EU Competition

INDUSTRIESPoland’s Appliance Sector Faces Rising Pressure From Non-EU Competition

The share of large household appliances made in third countries is rising across the European Union. These products now account for around 44% of all major appliances available on store shelves across member states. Representatives of the European industry are warning of a growing loss of competitiveness and are urging EU institutions to prepare a dedicated industrial plan for the home appliance sector. Their demands include lower energy prices, more coherent regulation and stronger incentives for investment in automation.

According to the 2025/2026 Home Appliance Market Report prepared by APPLiA Poland, 39% of EU home appliance production within the bloc comes from Poland. In categories such as dishwashers, washing machines and tumble dryers, Polish factories account for more than half of total EU production. Poland is increasing its share despite a decline in domestic output, but this is largely the result of shrinking production across the European Union as a whole.

Poland is the leading producer of household appliances in the European Union. We are very pleased about that, but it does not mean we are free of problems. The share of Polish production and sales on the European market is declining. Admittedly, the fall is limited, because we are defending our position quite effectively, but there are international factors that are making our work more difficult,” said Wojciech Konecki, President of APPLiA Poland.

Across the European Union, the home appliance industry employs around 1 million people and generates €44 billion in revenue across European supply chains. In Poland alone, the sector employed around 100,000 people, directly or indirectly, in 2025. However, the closure of several factories has led to a noticeable decline in employment.

The home appliance industry is highly important to the economy. Compared with our sister industries, only furniture is ahead of us. We are larger than almost all the others, perhaps with the exception of automotive parts manufacturing. We have 30 factories,” Konecki stressed.

In 2025, the sold value of production in Poland’s home appliance sector reached PLN 25.5 billion, down 5% year on year. For comparison, the furniture sector generated PLN 49 billion, the window industry PLN 23 billion, and television manufacturing PLN 17 billion.

What hurts us deeply is that five factories in our sector alone were closed last year. I am also referring here to colleagues from other industries, so this is a rather worrying signal. Certain measures must be taken immediately, because in a few years we may simply no longer be here. Although, as a sector, we have gone through many difficult periods and we know how to defend ourselves, and even go on the offensive,” the expert added.

The report points to a serious challenge in the form of competition from manufacturers based outside the European Union. In 2024, EU production covered 56% of total EU sales of large household appliances, compared with 59% a year earlier. In some product categories, the share of EU-made appliances has already fallen below half. In volume terms, China was the largest supplier of major household appliances to the EU, accounting for 43% in 2025. Imports from China, measured in units, were 90% higher than before the pandemic.

We certainly need to take care of supply chains and labour availability. We must call for better legislation at the European Union level, but also in the Polish parliament. It is clear that manufacturing requires capital, labour and technology. As Poland, we are not pioneers in automation and digitalisation, and we need support. We also need it in the context of the competitiveness of our production compared with imported goods. What we want is to ensure a level playing field,” said the President of APPLiA Poland.

According to data from the Polish Economic Institute, there were 55,888 industrial robots installed in the EU manufacturing sector in 2023, compared with 2,203 in Poland. This translates into 61 robots per 10,000 employees in Poland’s manufacturing sector.

The home appliance industry is not an island. We are part of a much broader spectrum of consumer industries that face similar problems. In Poland in particular, the energy used in manufacturing is among the most expensive, if not the most expensive, in Europe. Without help in this area, we will probably not be able to maintain our position,” Konecki argued.

“There are also regulations that affect us very strongly, such as CBAM or steel-related rules, where quotas are being reduced and tariffs increased. This helps steel producers in Europe, but it does not help steel users, because much of the steel is imported. So there is a whole range of macroeconomic factors that, over the longer term, affect the competitiveness of our industry.”

CBAM, the Carbon Border Adjustment Mechanism, is designed to equalise carbon costs at the EU’s borders. It applies to raw materials and semi-finished products whose production outside the EU is associated with high greenhouse gas emissions, including steel, cement, aluminium and electricity. The mechanism entered its full phase on 1 January 2026, meaning that EU importers may be required in certain cases to purchase certificates from national authorities.

Most of the raw materials needed for our production are covered by this environmental levy, while finished products entering the European market are not. What we are asking for is a level playing field for European and foreign manufacturers,” the expert stressed. “Fine-tuning regulation is especially necessary wherever competitiveness and the fundamentals of our business are concerned.”

In February 2026, APPLiA Poland called for the preparation of an EU action plan for the home appliance industry. According to the report’s authors, such a plan should be based on three pillars: ensuring competitive manufacturing conditions through affordable energy, equal treatment and stable access to raw materials; increasing the predictability and coherence of EU law; and supporting innovation along with investment in digitalisation, artificial intelligence, sustainable design and skills in order to preserve manufacturing and high-quality jobs in the European Union.

Sustainable design and other measures aimed at reducing environmental impact have become a major part of the sector’s activity in recent years. A growing body of EU legislation applies to this area.

The European Union, the European Commission and Polish lawmakers are all trying to make appliances more user-friendly. Dedicated databases have been created where consumers can check individual products. The so-called right to repair has been introduced. Repair will become even easier because ecodesign standards for individual products will be further strengthened,” Konecki explained.

For manufacturers, this means an obligation to provide technical documentation to repair services and to ensure the availability of spare parts for up to 10 years after a given model has gone out of production.

A digital product passport will also be introduced, containing key information to support product sustainability, promote circularity and strengthen regulatory compliance. While its final scope has not yet been fully specified, it may include technical parameters, materials and their origin, repair data, recycling possibilities and environmental impact over the product’s lifecycle.

The idea is to tighten the market, combat the grey economy and illegal products, but also to make it easier for consumers to choose between different brands and products. The product passport will provide data that are not always visible in price comparison tools. Some consumers want to know much more about a product or its manufacturer, including its development strategy, which is why they seek new sources of information. We support this direction of change in the European Union,” Konecki concluded.

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