Though the year 2020 is due to pandemics, one of the worst for Polish economics since the 1989 transformation, some industries managed to benefit from various economic and social changes. According to the IMF, Polish GDP is about to drop by about 4.6 pp this year. It is caused by the worldwide epidemics of Coronavirus and the lockdown that was undertaken to slow the disease spreading. If a certain branch is about to be one of the fastest growing industries 2020, it must be providing the consumers with goods or services that are especially desirable in crisis times. Though the entire European economy is suffering, some branches managed to take advantage of the new circumstances and are now growing in impressive numbers. So, what are the fastest growing industries in Poland?
Pandemics accelerates digitalization
While shopping possibilities, especially during the lockdown, were strictly limited, and peoples’ habits may not change that rapidly, some form of purchasing goods must have partly replaced traditional retail sales. E-commerce, which is the fastest growing industry, was a natural successor of this form. According to the report from Gemius Polska, in 2020, the percentage of customers who use e-commerce services has increased by 11 pp. and now amounts to 73%. This sector has been growing quickly and continuously for many years; however, the current situation is unprecedented. This year’s growth in the e-commerce industry in Poland is now estimated at 26%. No wonder Poland’s most prominent e-commerce operator, Allegro, decided to go public this year, and the prices of shares were skyrocketing, just like the value of what is the fastest growing industry in Poland.
However, the online shopping branch is not the only beneficiary of this very trend.
All the goods ordered online have to be delivered to the customer,
and therefore, parcel delivery companies are taking huge advantage of the growth of the e-commerce sector, making the entire branch one of the fastest growing industries. Reportedly it is about to grow for about 30% more than the expected, organic, annual growth, which amounts to 20% itself – this means the industry will increase its worth by over one fourth (!) in 2020.
Moreover, limited possibilities of making transactions in traditional ways have accelerated one more digitalization trend. It is not paying by cash or using regular, stationary credit card terminals forces customers to choose various forms of online payments. Both Polish (ex. PayU, Dotpay) and foreign (ex. PayPal, Google Pay) operators witness a considerable increase in sales and revenue this year. This catalyzes the trend that has been going on for about a decade in Poland, making it the second most “cashless” country in Europe and placing an online payment branch among the fastest growing industries in Poland 2020.
Expertise as a key to recovery
In some cases, the current situation does not only catalyze the trends that have been present on the market for a while. According to the polish Department of Statistics, a perfect example of Poland’s fastest growing industries is “Professional, scientific and technical activities.” The year-to-year increase in sales of his branch in the first two quarters of 2020 amounted to 7 pp, which seems pretty impressive concerning the economic situation. This means that demand for some expertise-requiring services is increasing in times of recession. While this branch has not been present on the fastest growing industries list for a couple of years, professional governance appears to be crucial for business in crisis times; therefore, more companies are using professional and consulting services. Hopefully, this would be beneficial for the entire economy.
The fact of the whole economy benefiting from developing a particular branch is inevitable in the last case I would mention in this article – renewable energy sources. The presence of this sector among the fastest developing industries is not a surprise; while the companies and individual consumers seek cheaper energy supplies, and the technology itself is more and more accessible, the total power of renewable energy has increased by 370 MW in 2020 so far and now amounts to almost 9.5 GW. However, unlike in the previous years, the growth is driven by individual prosumer, mostly photovoltaic installations. Those factors combined should provide the Polish economy with cheaper energy and in the context of EU-regulations, which will undoubtedly increase productivity and investment potential. This means that probably the increase in value of some of the fastest growing industries in Poland will result in long-term competitiveness improvement.
The year 2020 would be remembered as a year of a massive crisis caused by COVID-19. However, due to all the social changes the pandemics caused, many branches could have gained an advantage due to new behavioral patterns. Many industries have been rising rapidly in previous years(the fastest growing industries of 2020 are mostly related to alternative shopping methods). Still, in some cases, one-of-the-fastest-growing industry’s situation has suddenly improved. Indeed, though the entire economy is slowing down, there will be some enormous winners of this situation.