By Michael Dembinski
The UK market presents a significant and growing opportunity for Polish exporters, with bilateral trade between the two nations reaching all-time record values in the second quarter of 2025. Here are some key market insights, sector opportunities, and strategic considerations for Polish firms looking to expand or deepen their presence in the UK.
Record trade figures underscore the strengthening relationship. The value of Polish exports of goods to the UK in Q2 2025 was 34% higher than in Q4 2019, reaching £3.7 billion. And in August 2025, another record was reached, £1.3 billion, the highest ever in a single month. This was equivalent to the value of Polish exports to the UK for a whole year prior to Poland’s accession to the EU.
Looking the other way, the value of UK exports to Poland saw an even more dramatic rise, 83% higher in Q2 2025 than in Q4 2019, totalling £2.3 billion. This surge is significantly driven by trade in oil/gas and military hardware, both direct results of the full-scale Russian invasion of Ukraine.
Notably, Polish exports to the UK continue to grow even as they shrink to Poland’s other top markets like Germany, France, Czechia, Italy and the Netherlands. In August 2025, the UK was the only one of these export destinations to see year-on-year growth in the first eight months of the year.
Polish goods now account for 5% of UK imports from the EU and 2.5% of total UK imports, representing substantial growth from 2000’s figures of around 1% and 0.5% respectively.
Key question for Polish business: is the UK economy dead or resting’?
Despite post-Brexit challenges and slower GDP growth compared to Poland (up by only 4.5% vs. Poland’s 24.9% compared to pre-pandemic levels), the UK market retains an appeal for Polish businesses:
- It remains the world’s sixth-largest economy
- It is an open economy where it is relatively easy to do business
- It possesses a large population of wealthy consumers
- The FTSE 100 is at an all-time high; there have been three interest rate cuts this year
- A significant Polish diaspora of 700,000 people still resides in the UK (though down from a pre-Brexit peak of 1.1 million)
However, there are challenges that the Polish firm has to navigate:
- UK consumers are still struggling with a cost-of-living crisis.
- The middle market is in decline.
- The ongoing effects of Brexit continue to harm the economy, particularly small and medium-sized enterprises trading with Europe.
Consumer insights: Britain’s two economies
Understanding the demographic and geographic consumer split is crucial for Polish exporters. There is a marked demographic split which makes the UK unlike Poland, in that older consumers tend to be better off than young ones. Younger consumers are severely impacted, representing the first generation in history unlikely to become wealthier than their parents. This is due to the high cost of housing, the prolonged cost-of-living crisis and a rapid decline in entry-level white-collar jobs such as in law, accountancy and the media. Older consumers are generally wealthier, having paid off mortgages, but much of their wealth is locked in property.
The UK effectively operates as two economies, a wealthy London and the South East contrasting with the rest of the country. This is visually represented by the disparity in average housing prices across England (Scotland, Wales and Northern Ireland generally match northern England).
Sector overview: promising areas for Polish exports
Several sectors offer strong opportunities for Polish firms:
- Food & Drink: Polish products should look for routes beyond the “Big Six” retailers (which now includes Aldi and Lidl). The best entry route is often via trade shows and exhibitions.
- FMCG: from cosmetics to cleansing products, Polish products offer a strong value proposition to UK consumers.
- Tech: Poland has rapidly built up an excellent reputation in IT, particularly in FinTech and HealthTech, and is well positions it well to win significant UK business.
- Construction: opportunities exist in architectural services, home furnishings, and building materials. Although a boom is anticipated due to a government pledge to build 1.5 million houses over five years, supply-side constraints are currently holding it back.
- Energy: promising fields include renewables, network infrastructure, and R&D.
- Defence: strong promise for UK-Polish cooperation, particularly in IT-intensive areas like drone/counter-drone technology, electronic warfare, as well as maintenance & repair.
Strategic considerations for market entry
The appreciation of the Polish złoty (£1 currently equals 4.88 złotys, compared to an average of 5.50 złotys in 2022) makes Polish exports relatively more expensive, eating into margins. This poses a key strategic question: Should Polish firms export to the UK and build a presence organically, or invest directly, perhaps by acquiring a British business complete with its employees, brand, know-how, distribution network and existing client base?
Exporters must decide whether to compete on price (volume) or compete on brand (margin). A thorough SWOT analysis of one’s competitors on the UK market is essential to identify advantages and determine market positioning.
Regulatory compliance
Any firm entering the UK must ensure complete adherence to all relevant standards for their products, which could include requirements for windows, mattresses, food labelling, cosmetics, safety equipment, gas/electric appliances, and flame-retardant properties. BSI Group (the British Standards Institution, which has an office in Poland) offers the key resources for understanding and achieving necessary certifications, such as ISO 9001 Quality Management System.
Brand Poland and premium potential
The perception of Poland has improved dramatically over the last five to ten years – it is now seen as a source of quality products at affordable prices. This positive view raises a compelling question for Polish exporters: Is it time to position Poland as Premium?
One final note; while updating my presentation, I discovered (thanks to Google Gemini and confirmed by ChatGPT) that of the world’s six largest manufacturers of horse-drawn carriages – four are from Poland! This suggests that Poland’s strengths lie in conquering niche markets with bespoke, high-end products.
