Russia Beauty Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Russia Beauty Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Russia Beauty And Personal Care Market size is expected to grow from USD 9.25 billion in 2023 to USD 10.70 billion by 2028, at a CAGR of 2.96% during the forecast period (2023-2028).

Key Highlights

• High disposable income of high and mid-income Russians, an inclination to spend on appearance, a large section of the world's teens growing older and younger, a large section of the country's population is older and aging, a union of skin-benefiting and beautifying aspects in new makeup products through research into the use of natural products. For instance, according to the Russian Federal State Statistics Service, around 3.3 million men and 5.3 million women were above the age of 65 in Russia in 2022.
• The continuation of research on breakthrough technologies for premium and other products and the introduction of a range of new product classes (DD and EE creams, etc.) are some of the drivers of this market. Key players in the Russian beauty and personal care market are mainly focusing on product innovation and expansion.
• For instance, in March 2022, Shiseido expanded its clean beauty portfolio by introducing a new skincare brand. This strategic move was part of the company's plan to further develop its skin beauty segment, with the goal of increasing its contribution to total sales to 75% by the end of 2022. By adding this new brand to its portfolio, Shiseido aimed to capture a larger market share and cater to consumers' evolving preferences seeking clean and sustainable skincare options.
• Natural personal care product demand is rising due to rising consumer health consciousness. Consumer preference for organic personal care products is likely to expand throughout the forecast period due to the rising demand for organic ingredients. Another element contributing to the expansion of this industry is the growing consciousness about the perils of using chemical and synthetic materials. Market expansion can be attributed to the preference of customers for natural or organic labels.
• In addition, companies are reaching out to customers in various ways, including the Internet and other media. For instance, in May 2022, L'Oréal Paris, an international cosmetics company, introduced a cutting-edge and unique cosmetic tool in Israel for consumers as it continued to further its digital transformation. The business said that one could "measure" their hair color virtually at any time using the virtual ry On (VTO) tool, which is available on the L'Oréal website. According to the statement, 70% of all visitors to the L'Oréal Paris website have used the digital tool since it went live.

Russia Cosmetics Market Trends

Rising Demand for Natural/Organic Cosmetics Products

• The popularity boost for natural products containing ingredients such as minerals, proteins, and herbs from traditional Russian medicine has been attributed to numerous factors. These include; the rising GDP per capita (PPP), fall in the unemployment rates, increase in disposable incomes, growing awareness, and rise in the number of distribution channels for organic products. Other factors to aid the forecasted growth include the growing aging female population’s demand for anti-aging products, such as moisturizers, creams, and anti-hair loss products.
• Meanwhile, the rising spending power of females aged over 25 is also helping sales. The side effects of chemicals in cosmetic products leading to adverse health outcomes are raising concerns among consumers. Harmful metals and chemicals get absorbed through the skin, accumulate in the body, and lead to ailments such as skin irritation, allergies, and skin dullness, which is inducing consumers to opt for natural products, thereby fueling demand for organic cosmetic products. ​
• Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers. This has resulted in a shift in preference from synthetic skincare products to organic products among consumers. To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as ‘organic,’ ‘vegan,’ ‘natural,’ ‘chemical-free’ and ‘cruelty-free.’ ​Cosmetic manufacturers are opting for natural and environmental-friendly ingredients to manufacture products.
• The ‘green cosmetics’ are pushing the need for sustainable beauty products. Manufacturers are taking an interest in sustainable beauty and are using sustainable ingredients in their products. Moreover, consumers are looking for shampoos infused with oils, including blended formulations and pure organics, thus, providing healthy fixes for dry and damaged hair. According to estimates by the European Commission, the production value of shampoo was almost EUR 2.13 billion (USD 2.51 billion) in 2021. Production value grew overall throughout the period under review.

Hair Care Products Shown Significant Growth

• The widespread availability and low cost of hair care products, including shampoo, conditioner, oil, spray, and related items, has resulted in increased expenditure on hair care products across the area. Demand is expected to rise in the coming years as the market responds to an increase in the number of millennials experiencing hair problems like hair loss and dandruff as a result of changing lifestyle habits and rising stress levels among the population of working-class women.
• The purchasing power of the Russian people as a whole, including their ability to spend money on things like hair care products, has increased due to the country's rising per capita income. For instance, according to the World Bank, GDP Per Capita was USD 12,194.8 in 2021, an increase from USD 10,169.1 in 2020.
• Manufacturers are incentivized to provide product innovations, such as new packaging, to meet the rising demand for hair care products as customer tastes evolve, and they spend more of their disposable income on these items. Hair treatment oils, which may be used to stop hair loss, boost shine, and tame frizz, is just one example of the many treatments available in dropper bottles for easy, accurate administration. Companies are responding to the market's need for convenience and portability by producing products in convenient miniature formats such as sachets, deluxe samples, and micro bottles.
• For instance, in March 2021, Procter & Gamble announced the launch of new innovative reusable aluminum bottle packaging for a range of its haircare products. The brands with the new packaging included Pantene, Herbal Essences, and Head & Shoulders. To capitalize on consumers' growing willingness to spend money on hair care products, established businesses are using tactics such as product development, geographic growth, and advertising spending, among others. The players operating in the hair colorants segment are extending their distribution network by adopting direct selling to customers.
• For instance, Estel offers a range of hair colorants in the country, having different variants like non-ammonia hair color and hair dyes having natural ingredients. In response to the growing consumer focus on ingredients, the company asserts that Princess Essex's hair coloring range incorporates key components such as guarana seed extract, beeswax, and a keratin complex. These carefully selected ingredients are believed to enhance the overall quality and appeal of the product, catering to the preferences of discerning consumers..​

Russia Cosmetics Industry Overview

Distribution is pervasive through exclusive stores of personal care and beauty products in malls or standalone, while e-commerce is emerging as a competitor to direct sales for all mass and premium brands. Hence, major players are seeking to make a presence in all forms of distributing channels. Also, the scope of innovation in the beauty and cosmetics range is high. The leading players in the Russian beauty and personal care market are L'Oreal Group, Procter & Gamble, Beiersdorf AG, Unilever, The Estée Lauder Companies Inc., Shiseido Company Limited, Oriflame Cosmetics SA, Revlon, etc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support