Across Europe, countries are competing to attract investors, new business and entrepreneurs from numerous industries, offering a range of benefits to render their country a more attractive option.  

When it comes to selecting where to set up a household appliances company, several European countries have established industry and manufacturing infrastructures that could be propitious for new companies. 

Examining the business landscape and start-up potential in Poland or Germany, however, suggests that these countries could offer more benefits when setting up a household appliance business. 

Poland offers central location and positive business environment

Located in the heart of Central Europe and divided into 16 administrative provinces, Poland is a hub for investors and business start-ups across numerous industries.  

With a population of more than 38 million it is the fifth-most populous member state of the EU. Thriving sectors including education, agriculture, energy, tourism and manufacturing are driving the Polish economy. 

Cities including Warsaw, Kraków and Łódź continue to show growth in terms of industry and attendant business opportunities. 

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In addition to a range of tax incentives and financial support for already established small and medium-sized enterprises (SMEs), Poland represents a favourable investment and location option for start-ups.  

As of 2023, there were over 40 household appliance companies in Poland, employing over 31,000 people.

This established industry ecosystem makes the country an attractive option when it comes to starting a business in the sector.

Łódź leading the way for new business investment opportunities 

Showcasing another major investment strength of Poland, specifically in the Łódź region, is the business initiative Łódź Special Economic Zone (LSEZ). 

This government and business collaboration initiative provides targeted acceleration programmes for start-ups, driving fiscal investment and helping new companies open.  

When looking at where to set up a household appliances company in Europe, initial cost savings and ongoing economic incentives are attractive to potential business owners.  

The numerous initiatives within this are designed to encourage and support investors to come to the area, combining the potential and creativity of innovative SMEs with the experience, resources and infrastructure of large enterprises. 

Strong sector performance making Poland an industry leader 

When considering where to set up a household appliances company in Europe, Poland has some impressive figures relating to the sector.  

In 2020, the value of sales for household appliances in Poland topped PLN23bn ($5.2bn), representing an increase of more than 14.1% from the previous year.  

In terms of market share, Polish output accounts for about 3% of European exports. With more than 40 household appliance manufacturing companies and over 31,000 employees working across the household appliances industry, the forecasts remain strong.  

An overview of the industry also reveals that more than 30 million household appliance units were manufactured in Poland in 2020. This represents a 35% share of the EU production total, a number that is expected to rise.  

When considering where to set up a household appliances company, the financial landscape of Poland looks positive.  

With a household appliance export value of more than PLN24bn in 2021, a 14% increase year on year, and an annual sector value of foreign direct investment in Poland of about PLN1bn, the growth potential remains strong.  

Germany remains strong for household appliance industry investment 

Germany is one of the economic powerhouses of Europe, with a highly developed social market economy and a wealth of industry leaders.  

The country’s economy is largely dominated by the automotive, mechanical engineering, chemical and electrical industries through global names such as Volkswagen, Daimler, BMW, BASF and Siemens.    

Boasting the largest national economy in Europe, it is also the fifth largest in the world by GDP.

With a household appliance market with revenue of $10.83bn in 2022, and a projected 5.3% compound annual growth rate between 2022 and 2027), Germany offers significant market opportunities when deciding where to set up a household appliances company.  

For investors examining the sector’s economic statistics to determine their business location and strategy, the German household appliances market generated an average of $129.10 per person in 2022.  

Of the overall financial figures across the industry, it is forecast that approximately 43.4% of total revenue will be generated through online sales by the close of 2022. 

Positive forecasts attracting household appliance companies to Germany 

As with any business venture, projections and fiscal forecasts can determine where businesses locate, and the household appliances market in Germany is on a positive trajectory.  

With established names including Gaggenau, Miele and Bosch already established as major names in the sector in Germany, new companies and the existing firms are expecting to enjoy an overall volume growth of 11.2% in 2023. 

Information, Data and statistics from Statistica, Globalisation and World Cities Research Network, Polish Investment and Trade Industry, Łódź Chamber of Industry Commerce, Invest in Poland, Łódź Special Economic Zone (LSEZ), Polish Investment and Trade Agency.