Cosmetics (Russian market)

Cosmetics and Perfumes (Global Market)

Main article: Cosmetics and perfumes (global market)

2024: Growth in the number of Russian cosmetics manufacturers by 30% to 2,000 companies

Over the past five years, the number of Russian companies producing cosmetic products has increased by 30%. Such data were released in October 2024.

According to Vedomosti, Tatyana Puchkova, chairman of the board of the Russian Perfume and Cosmetic Association, said that as of September 2024, there were almost 2,000 existing manufacturers of cosmetics and perfumes in Russia. At the same time, 97% of them belong to the category of small and medium-sized businesses. The main production facilities are concentrated in Moscow, the Moscow region, St. Petersburg and Novosibirsk.

Over 5 years, the number of Russian cosmetics manufacturers has grown by 30%

The growth in the number of producers is accompanied by an increase in the share of domestic goods in the market. Over the past two years, the number of Russian cosmetics brands has more than doubled, and their share has reached 40% of the total market volume. In 2023, the consumption of domestic cosmetics in physical terms increased by 19%.

Experts note the expansion of the age range of consumers of cosmetic products. According to Ekaterina Timoshevskaya, account manager of the ROMIR research holding, if in 2019 the lower limit of consumer age was 17 years, then in 2024 it decreased to 14 years.

Despite the positive trends, the industry faces a number of challenges. Tatyana Puchkova noted a shortage of qualified personnel at all levels, a lack of available sources of financing and an insufficient level of competence to promote brands.

An important aspect of the development of the industry is the introduction of a system for labeling cosmetic products. The experiment on the labeling of certain types of cosmetics began on January 15, 2024 and will last until February 28, 2025. Mandatory labeling is planned for introduction in early March 2025.^[1]

2023

Production of cosmetics for the body in Russia for the year decreased by 6% to 487 million pieces

The volume of production of waste cosmetics for the body in Russia decreased by 6% in 2023 and amounted to 487 million units against 516 million units in 2022. This was announced by BusinesStat in December 2024.

According to Businessesstat, the decline in production is due to a contraction in demand and difficulties in the supply of raw materials. Russian manufacturers occupy about 70% of the market, but the industry is highly dependent on component imports.

In Russia, the production of the main ingredients - glycerol, propylene glycol, hyaluronic acid, gelling agents and extracts has been established, but their range is limited, and the volumes are not enough to fully support the market.

After the imposition of sanctions in 2022, the supply of raw materials from Europe practically stopped. Manufacturers have refocused on imports from China and India, but reformulation and lengthening supply chains have pushed up prices.

The departure of Unilever, which owned one of the largest cosmetics manufacturers, Unilever Rus LLC, had a significant impact on the industry. In August 2024, the company sold its assets to the Arnest group.

At the same time, the departure of foreign brands allowed Russian manufacturers to increase their presence in the market. The number of domestic brands has grown by a third, and retailers have expanded the range of Russian cosmetics.

According to the publication, in the period from 2019 to 2021, there was an increase in the production of cosmetics: from 365 million units to 545 million units. However, from 2022, a decrease in output began, which continued in 2023.

Retail chains began to cooperate even with small Russian brands, which had not previously been observed. Domestic cosmetics are characterized by high quality, but previously inferior to foreign competitors in terms of investment in promotion.^[2]

The share of domestic perfumes and cosmetics in Russia exceeded 40%

The share of domestic perfume and cosmetic products in the Russian market exceeded 40%. Such data on June 5, 2024 was cited by Anna Dycheva-Smirnova, a member of the board of the Russian Perfume and Cosmetic Association.

According to her, the consumption of Russian perfumes and cosmetics in 2023 increased by 19% compared to 2022. This is confirmed both by economic indicators and by the growing positive attitude of consumers towards domestic products.

The share of domestic perfume and cosmetic products in the Russian market exceeded 40%

Natalya Shik, General Director of Shik, believes that in Russia it is necessary to develop not only the economy segment, but also luxury cosmetics. In her opinion, the domestic range is still limited.

The deputy head of the Ministry of Industry and Trade Mikhail Yurin clarified that in the Russian industry in 2024 there are about 600 companies, of which 30 are large and medium-sized. He explained that increasing production is impossible without localizing the raw materials components. In 2023, the production of 7 such components and packaging was supported. The development of personnel in the industry is designed to contribute to the first master's program in Russia for the training of perfumers-technologists, which will open at the Russian Chemical University named after D.I. Mendeleev in September 2024.

The analysis shows the Ministry of Industry and Trade that by 2024 consumer 22% are dissatisfied with the existing range of perfumes and cosmetics, and 37% doubt its quality. At the same time, 75% are ready to overpay for "green" cosmetics. Yulia Mikhaleva, deputy head of Roskachestvo, notes the need to introduce a single sign for such products. This will allow you to fight unscrupulous manufacturers.^[3]

Growth in the production of children's cosmetics by 7.4% to 145.2 million units

In 2023, the production of children's cosmetics in Russia reached 145.2 million units. This is 7.4% more compared to the previous year, when the volume of output was estimated at 135.1 million units. Market statistics are provided in the BusinesStat report published on June 10, 2024.

Analysts take into account products such as decorative cosmetics, bath products, as well as hair, tooth, facial and body skin care products. Key market players include Unilever Rus, Faberlik, Unicosmetic, Nevskaya Cosmetics and Arnest. The review does not look at children's personal care products (wet wipes, diapers, soap) and perfume products for children.

It is noted that the industry demonstrates variable dynamics. In 2019, 149.1 million pieces of children's cosmetics were produced in the Russian Federation. A year later, output decreased by 12.4% to 130.6 million units. In the context of the COVID-19 pandemic, difficulties arose with the supply of imported ingredients and raw materials for the production of products. At the same time, demand decreased due to a decrease in household incomes and fertility, which did not allow Russian enterprises to increase the production of goods.

In 2021, production rose by 9.5% to 143 million units. But in 2022, another decline followed: against the background of a worsening geopolitical situation, output decreased by 5.5% - to 135.1 million units. Manufacturers faced instability in the supply of raw materials from countries Europe and began to look for alternative suppliers from,,, and Koreas Turkey. China India However, many manufacturers were forced to make changes to the recipe of their products, preferring organic ingredients. On the other hand, the departure of Western brands has opened up new opportunities for Russian cosmetic companies. The range is constantly replenished with new products: balms, lotions, milk, emulsions, oils, tanning products, etc.^[4]

Cosmetics sales growth by 8.9% to 3.85 billion units

In 2023, cosmetics sales in Russia increased by 8.9% compared to 2022, reaching 3.85 billion units. This was the highest value in five years (since 2019). The key growth factors are the recovery of purchasing activity and the adaptation of market participants to the formed environment, as stated in the BusinesStat study, the results of which are presented in early June 2024.

Analysts take into account sales of products such as deodorants and antiperspirants, decorative cosmetics, shaving and bath products, as well as hair, skin, tooth, etc. Among the major players in the Russian market are Lab Industries, Unilever Rus, L'Oreal, NTS Gradient and Faberlik.

The report says that in 2019, cosmetics sales in the Russian Federation amounted to approximately 3.47 billion units. In 2020, a slight decline was recorded - about 0.2% with a final result of 3.46 billion units. On the one hand, against the background of the COVID-19 pandemic, sales of most types of cosmetics in Russia decreased by 10-30%. But, on the other hand, the demand for skin care products jumped: due to the spread of the coronavirus, people began to wash their hands more often and use sanitizers, which adversely affected the skin and led to an increase in the sale of hand creams.

In 2021, cosmetics sales in the Russian Federation rose by 6.4% on an annualized basis and reached 3.69 billion units. The increase in sales was facilitated by pent-up demand and a recovery in business activity after the lifting of severe restrictive measures introduced in response to COVID-19. But in 2022 there was a decline of 4.2% - to 3.53 billion units. This is due to the current geopolitical situation, which provoked the withdrawal of a number of foreign brands from the Russian market. In addition, prices began to rise, accompanied by a drop in the income of Russians.^[5]

Sales growth of decorative cosmetics by 5.4% to 461.5 million units

In 2023, sales of decorative cosmetics on the Russian market reached 461.5 million units. Growth compared to the previous year, when 438.1 million units were sold, was recorded at 5.4%. The relevant figures are reflected in the BusinesStat report submitted on May 28, 2024.

The statistics released take into account sales of cosmetic powder and blush, eye and lip makeup products, manicure and pedicure products, foundation, concealers and primers. When compiling the report, BusinesStat takes as a basis the data of Rosstat (domestic production) and the Federal Customs Service (export and import). In addition, with the help of expert assessments and own studies of retail and wholesale trade, warehouse stocks, shadow production and other market factors affecting sales are calculated.

The study says that in 2019, sales of decorative cosmetics in Russia were estimated at 451.8 million units. This was followed by a significant decline associated with the COVID-19 pandemic. At the beginning of 2020, Russians, succumbing to panic over the threat of the spread of coronavirus, spent money on the purchase of goods in high demand: food with a long shelf life, personal hygiene and personal protective equipment. Against the background of the introduction of a self-isolation regime and the closure of retail outlets, sales of decorative cosmetics began to decline: by the end of 2020, the demand for such products fell by 9.6% - to 408.6 million units. In 2021, a slight increase followed - by 0.5%, to 410.5 million units. And in 2022, the industry began to recover: the demand for decorative cosmetics rose on an annualized basis by 6.7%.

The report said the increase in sales was driven by the expansion of brand assortment and diversity, as well as the development of online channels. Perfume and cosmetic retail chains and convenience stores also stimulate demand, since they offer relatively inexpensive products and are within walking distance.^[6]

The largest chains selling cosmetics in Russia have been named - a study by Infoline Analytics

In mid-April 2024, the research company Infoline Analytics published data on the largest chains selling cosmetics and perfumes in Russia. In the first place remained the network "Magnet Cosmetics," which sales in 2023 amounted to 200.7 billion rubles against 192.4 billion rubles in 2022.

As noted by "Vedomosti" with reference to the materials of "Infoline-analytics," "Magnet Cosmetics" falls into the wider category of "cosmetics and drogery," since it also works with goods for personal hygiene and household chemicals. 

Named the largest chains of cosmetics stores in Russia at the end of 2023

In second place among cosmetics sellers in the Russian Federation is the L'Etoile network, taking into account the Girlhood network belonging to it (Alcor & Co LLC and Taber Trade LLC; sell cosmetics and perfumes). This group in 2023 earned a total of about 104.2 billion rubles.

According to the representative of L'Etoile, in 2023 the chain launched 42 new stores and five regional warehouses, the total number of points increased to 1000. "Girlfriend" increased its network at once by 216 points, to 528 stores.

The leading top three list included the Golden Apple, which significantly increased revenue in 2023 - one and a half times, to 93.4 billion rubles. The representative of the retailer associates the rapid growth with the development of online sales: their share in the company's total revenue for the year increased from 37% to 50%.

In fourth place in the rating of "Infoline-analytics" for 2023 is the network "Smile of the Rainbow" with revenue of 36 billion rubles. It is followed by Rive Gauche and Ile de Bote with 35 billion and 8.5 billion rubles. respectively. If we take into account the marketplaces in the rating, Wildberries will take the second place - experts estimate its sales in the category of "cosmetics and drogery" at 166.8 billion rubles. Ozon would take fifth place (80.4 billion rubles^[7]

2022

Decrease in the professional cosmetics market by 4.8% to 81 billion rubles

In 2022, professional cosmetics were sold in Russia in the amount of 81 billion rubles, which is 4.8% less than a year ago. Such figures in mid-December 2023 were released by BusinesStat analysts.

According to them, the fall in the professional cosmetics market is due to a change in the sales structure: consumers began to focus on more budget products in the face of a decrease in disposable income and withdrawal from the market of large foreign manufacturers (L'Oreal, Wella, Londa, Schwarzkopf, Redken, Kerastase, Allergan and others). In addition, in 2022, part of the active visitors to beauty salons, the main consumers of professional cosmetics, who spent significant funds on self-care every month, left Russia.

As noted in a study by BusinesStat, published in December 2023, in previous years, sales of professional cosmetics in money grew annually, which was facilitated by several factors, namely:

• continuous updating of product lines by manufacturers and high marketing activity of market participants;
• increased attention of Russians to health and self-care, which increased during the pandemic.
• development of online sales and marketplaces.

The following companies were named the largest manufacturers of professional cosmetics in 2022:

• "NTS" Gradient ";
• "Cotton Club";
• «ARNEST»;
• "Unicosmetic";
• Aerosol Novomoskovsk LLC.

According to analysts, in 2022, Russian space companies purchased abroad about 5 thousand items of raw materials used in the production of cosmetics. Despite the fact that most of the procurement channels were reoriented to India and China, dependence on imports of raw materials from the EU remained high.^[8]

37% reduction in deodorant and antiperspirant production to 335 million units

At the end of 2022, about 335 million deodorants and antiperspirants were produced in Russia, which is 37% less than a year ago. This is evidenced by data from the BusinesStat study, published in December 2023.

It follows from BusinesStat materials that in 2022 Russian manufacturers faced difficulties and delays in the supply of imported components, packaging and components necessary for the production of deodorants and antiperspirants. Manufacturers were forced to change the recipe of their products.

In 2022, a number of manufacturers proposed to exclude cosmetics from parallel imports, as companies continue to produce products domestically or import them directly, but face competition from their own brand imported from other countries.

At the end of December 2022, a decree of the Government of the Russian Federation approved the rate of import customs duties on the import of shampoos, other hair products, toothpastes, shaving products, deodorants, detergents and cleaning products from unfriendly countries at 35%.

Despite the adopted decree, in 2022 the import of deodorants and antiperspirants from Poland increased by 7.7 million units. The main volume of products imported from Poland are deodorants of the Nivea and Old Spice brands. In addition, the volume of supplies from Turkey has increased (+ 6.7 million items in 2022), from where Arko brand deodorants are supplied in the largest volume.

According to analysts' forecasts, the demand for deodorants and antiperspirants will increase steadily, as the number of regular consumers of these products grows annually. Some domestic brands have previously entrenched in the market and are now planning to expand production, such as Levrana or Deonica, according to a study released at the end of 2023.^[9]

Shampoo sales cut by 13.8% to 331m

Shampoo production in Russia in 2022 decreased by 13.8% compared to the previous year (to 331 million units), while in 2021 an increase of 5.1% was recorded (to 384 million units). This is evidenced by data from analysts BusinesStat, released in June 2023

According to the study, for the period 2018-2022. the production of shampoos in the Russian Federation decreased by 26%. It is noted that in 2022, due to the complication of foreign policy relations, difficulties arose with the supply of raw materials for production to Russia. Many ingredients for shampoos were of foreign origin, all large Russian cosmetic companies with their own and contract production depended on European raw materials.

In Russia, there is a production of basic components such as glycerin, propylene glycol, gelling agents, and among domestic companies there are manufacturers of extracts, fragrances and surfactants - but this is only a small part of the raw materials necessary for the production of shampoos. The main alternative suppliers of raw materials are China and India, part of the components can be supplied to the Russian market from Turkey. However, the change in the recipe of production, as well as the search for new suppliers, led to a decrease in production volumes and an increase in its cost. It is important to take into account that not all imported components can be adapted for Russia. For example, Brazilian components for the production of hair products are not suitable for most Russians due to the difference in hair types, the researchers point out.

According to them, a positive moment for Russian manufacturers was the weakening of competition in the Russian market. After the departure of foreign brands, the assortment in Russia decreased significantly, and retailers were forced to replace the fallen assortment with Russian counterparts. According to retailers, they began to cooperate even with small brands, which was not observed earlier. A bill has been prepared on quotas for the share of the shelf in retail chains. According to the initiative, Russian retail will be obliged to have domestic goods on the shelves in a certain amount.^[10]

Decrease in sales of decorative cosmetics by 2.5%, up to 400 million packages

At the end of 2022, about 400 million packages of cosmetics were sold in Russia, which is 2.5% less than a year earlier. Such data was recorded by BusinesStat analysts. They published the study in May 2023.

According to experts, the demand for decorative cosmetics in the Russian Federation decreased due to a significant increase in prices combined with a drop in the disposable income of Russians. After the start of the military special operation of the Russian Federation in Ukraine, there was an exuberant demand for a number of cosmetic brands in Russia, as buyers were afraid to face a shortage of products. However, in the future, sales began to fall.

The departure from the Russian market of a large number of foreign brands, as well as the desire of consumers to save money, spurred the demand for inexpensive decorative cosmetics of domestic production. In turn, retailers began to expand the representation of Russian products on their shelves in order to replace the fallen import assortment. Against this background, the share of domestic products on the Russian market increased from 27% in 2021 to 31% a year later.

According to BusinesStat, in 2022, the export of decorative cosmetics from Russia decreased by 24.3% compared to 2021 and amounted to 66.7 million packages. Until 2022, the main foreign buyers of Russian decorative cosmetics were Kazakhstan (29.8% of total exports in 2021), Belarus (19.9%) and Ukraine (12.0%). In connection with the conflict, supplies to Ukraine fell sharply (by 9 million by the end of 2022), there was a decrease in exports to EU countries and other countries of the world.

In 2022, due to a decrease in the natural volume of supplies, export turnover in monetary terms decreased by 11.6% and amounted to $104.4 million, according to BusinesStat. Analysts added that in 2022, demand for cosmetics was supported largely due to the development of drogery format stores and online platforms.^[11]

Sales of face care cosmetics in Russia decreased by 22%

At the end of 2022, sales of face skin care cosmetics in Russia amounted to 355 million packages, which is 22% less than a year earlier. Such figures BusinesStat led in May 2023.

According to them, the market contracted due to a significant increase in prices combined with a drop in disposable income of Russians. In addition, sales were negatively affected by a reduction in the range of cosmetics on the Russian market due to the cessation of supplies of foreign brands, including Biotherm, CeraVe, Clinique, Helena Rubinstein, L'Oreal, La Roche-Posay, Lancome, Shiseido, Vichy, etc.

The study notes that the complications of foreign policy relations in 2022 also led to difficulties with the supply of raw materials for the production of cosmetics in. Russia About 60-70% of ingredients for cosmetics are of foreign origin. All large Russian cosmetic companies with their own and contract production depend on European raw materials. In Russia, there is a production of basic components such as glycerin, propylene glycol, gelling agents - but this is only a small part of the raw materials necessary for the production of cosmetics. As alternative suppliers of raw materials, it is mainly considered China and, India some of the components are planned to be supplied to the Russian market from, Turkey according to BusinesStat.

After a significant increase in the export of face cosmetics from Russia in 2020, in 2021-2022. supplies decreased by 6.5-8.3% per year and at the end of the period amounted to 85.2 million units. At the same time, the volume of exports of these products in monetary terms in 2022 increased - by 7.8% compared to 2021 and reached $138.2 million. The main impact on the dynamics of export turnover in 2018-2022. had a change in supplies in quantitative terms, experts added.^[12]

Sales of pharmacy cosmetics in Russia sank by 10.8%

Sales of pharmacy cosmetics in Russia in 2022 amounted to 148.5 million packages, which is 10.8% less than a year earlier. At the same time, the market volume in money grew by 10.4% and amounted to 49.9 billion rubles. This is evidenced by data from the DSM Group, released in April 2023.

According to experts, sales of cosmetics in pharmacies in the Russian Federation in 2022 were the highest in several years. This was partly due to the demand for selective cosmetics, which grew by 16.4% in money at the end of 2022. During this 12-month period, cosmetics took third place (after drugs and dietary supplements) in the sales structure of pharmacies.

In 2022, Russian pharmacies sold about 2,400 different brands of cosmetics (24.6 thousand items). At the same time, manufacturers offered the consumer more than 260 new brands. The most successful of them were the following brands:

• 110 place - STM cosmetics Enlu Lab (Maryvery company), which is a series of face products;
• 142nd place - cosmetic gels for sprains, bruises, diseases of the joints of an inflammatory nature "Artelar" (STM manufactured by "Pharmacy Service Plus");
• 158th place - a series of cosmetics mass-market Malinia London (Maryvery company), including products for problem hair, as well as thin and dry skin.

These products entered the top 200 in terms of sales in money, since their sales for the analyzed period in total exceeded 194 million rubles.

According to the study, in 2022 the share of cosmetics ordered in pharmacies via the Internet amounted to 15% or 7.5 billion rubles, which is 4 pp more than a year earlier, and the increase in online is 53%). Selective cosmetics, which are presented mainly in pharmacies (such brands as La Roche-Posay, Vichy, Bioderma, etc.), are more often booked via the Internet - its share is 18.6%. This is due to the fact that the consumer actively uses online shopping platforms in order to choose the optimal price. It is premium cosmetics that have the maximum weighted average cost of packaging (1163 rubles), therefore, in this category, sensitivity to price is more high, noted in the DSM Group.

Pharmaceutical market of Russia 2022

Russia imposed duties of 35% on individual perfume and cosmetic products from hostile countries

Russia introduced by the end of 2023 duties in the amount of 35% in relation to individual perfume and cosmetic products and household chemicals from,,,, and USA Canada Britain. Australia New Zealand Poland

Growth in the share of sales of Russian cosmetics up to 30%

The share of purchases of foreign cosmetics in the three quarters of 2022 decreased to 70%. Accordingly, the share of purchases of Russian cosmetics for the same period increased to 30%, a year earlier for the same period, the share of domestic manufacturers was equal to 23%.

2020: Sales of cosmetics via the Internet in Russia increased by 158%, to 95 billion rubles

In 2020, 83 million orders for the purchase of cosmetics were made in Russian online stores, which is 158% more than a year earlier. In money, the market volume grew by 99%, to 95 billion rubles with an average purchase check of 1,150 rubles (-23% by 2019). This is evidenced by the data of the analytical company Data Insight, released in early August 2021.

The study includes 58 stores specializing in the sale of decorative and care cosmetics, perfumes, products for manicurists, pedicures and makeup artists.

The first place in terms of online sales of cosmetics at the end of 2020 was taken by Wildberries, the second and third - Ozon and Letoile, respectively. 83% of orders and 53% of segment revenue came from Wildberries and Ozon.

All stores included in the study use courier delivery, 95% of them - delivery to pickup points. 86% use the services of the Russian Post. 52% of stores from those included in the study are registered on Yandex.Market. The most popular social networks in the segment are Instagram (91% of stores are located) and VKontakte (89%).

The share of online cosmetics stores in 2020 accounted for 10% of the Russian online trading market in terms of the number of orders and 4% in terms of sales in rubles.

Of the online cosmetics stores included in the TOP1000 of online retailers, non-capital regions account for only 18% of stores, including 3 stores registered in the Sverdlovsk region, another 3 in other regions of the Urals and the Asian part of Russia, 4 in non-capital regions of European Russia.

In the segment of online cosmetics stores, conversion in 2020 amounted to 5.1% (5.1 orders per 100 site visits). The nearest indicators for online bookstores and online clothing, footwear and accessories stores are 5.9% and 4.5%, respectively.^[13]

Notes