Russia Hair Care Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Russia Hair Care Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Russia's Hair Care market is projected to witness a CAGR of 1.73% during the forecast period.

Russian consumers generally prefer more natural products for their hair care routines. Thus, the demand for organic products or products containing natural ingredients is comparatively higher in the region. Owing to the surge in demand for natural/organic hair care products, players such as Natura Siberica, Love 2 Mix Organic, Natura & Co., etc., have been offering natural products/ organic products in the region's market. Hair fall is one of the common problems faced across Russia, and baldness and Alopecia Areata disease in witnessed in the country. The possible reason for these conditions tends to be vitamin D deficiency which is very common in Russia. Cold temperatures during winter tend to leave the scalp, eventually leading to hair fall; this condition drives products with hair fall and hair repair products. However, due to the ongoing Russia-Ukraine war, various players have been pulling out of the market studied. For example, in April 2022, Henkel chose to end its commercial operations in Russia due to the recent events in the Ukrainian conflict. Such factors impede the market growth of hair care products in the country.

Hypermarkets/supermarkets form a key mode of distribution in the country, as key players in the country are primarily focused on sales through these stores. All the varieties of shampoo, conditioners, and other hair care products offered by different brands are placed on the same shelf. Thus, it is convenient for consumers to select and buy a specific product according to their preferences.​ Auchan and Azbuka Vkusa are a few prominent supermarkets in the country offering a variety of hair care products. Customers in the country often choose to use branded products instead of any locally made private products. With the increased number of fake products, which tend to harm overall health and sometimes lead to severe hair fall, consumers check for certified and clean labels before purchasing the product. Hence, companies operating in the market offer certified products to impart credibility to products, in turn driving the expansion of the market across the region.

The market is being pulled in ever-increasing directions by the accessibility and affordability of hair care goods, including shampoo, conditioner, oil, spray, and other similar items, which has resulted in increased spending on hair care products throughout the region. Additionally, the market has seen an increase in millennials suffering from hair issues like hair loss and dandruff as a result of changing lifestyle habits and rising stress levels among the population of working-class women, which is anticipated to drive up demand for these products in the coming years. Additionally, the growing per capita income has also led to an increase in the purchasing capacity of the population in Russia, which also includes the expenditure on the hair care products segment. According to the Russian Federal State Statistics Service, almost RUB 519 thousand were spent on final household consumption per person in Russia last year, a significant rise from the year before.

A further shift in consumer preferences and discretionary spending on hair care products by consumers are encouraging manufacturers to bring product innovations, in terms of packaging, to boost the market demand. Additionally, products are offered in dropper packaging for precise dosing and application, such as treatment oils for preventing hair loss, enhancing luster, and reducing frizz. Additionally, companies are now providing travel-size packaging, including sachets, deluxe samples, and mini bottles, for portability and ease, which are driving forces in the market under study. In response to rising expenditure on hair care products, the players operating in the market are following various strategies like product innovation, expansion, promotional investments, and others to occupy the market share.

Digitization is one of the emerging trends that has had a direct impact on the growth of the region's hair care products market. The constantly growing use of social media and the internet, in general, has provided players with the potential to raise brand awareness among consumers. ​The increased internet penetration across the region has been playing a crucial role in driving the market studied.

The majority of haircare products are sold offline in supermarkets, hypermarkets, and convenience stores. As a result, supermarkets frequently showcase haircare items in a separate section with the key items upfront. To entice people to acquire these items, they are frequently presented alongside complementary goods like conditioners and serums. Hence, various players offering haircare products have been attempting to reach consumers via various platforms such as YouTube, Instagram, Facebook, and others. According to the Internet world stats data, Russia accounted for 16.6% of internet users across Europe this year, while the internet penetration in the region was 85.3%. Different companies have been trying to spread awareness about the benefits of the products they offer via online platforms, and the players have also been appointing various influencers and celebrities to promote their products and improve their brand recognition among consumers.

The key players in the Russian hair care market include L’Oreal SA, The Procter & Gamble Company, Henkel AG & Company KGaA, Unilever PLC, and Natura & Co. Hair wash products. Hair masks are also quite popular among Russian women. Russian women generally prefer natural ingredients in their products. Several brands recently gained popularity, specializing in natural and organic hair care products. Natura Siberica, Organic Shop, and White Agafia are some of the popular names in hair care products that make natural and organic products. These brands have some famous products in the Russian market, like Natura Siberica Northern Cloudberry Shampoo, Organic Shop Color Conditioner Golden Orchid, and Natura Siberica Fresh Spa Birch Tree Strengthening Shampoo. The key players are actively focusing on gaining larger market shares through constant innovation in products and investments in research and development for developing niche products. Considering the above-mentioned factors, the competitive rivalry in the industry is assessed to be high during the forecast period.

• The market estimate (ME) sheet in Excel format
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