Euromonitor International’s latest strategy briefing, "Russia: Growth Market for the Future," indicates that the Russian beauty and health products market is experiencing phenomenal growth and is one of the fastest developing industry sectors in Russia. Specialized cosmetic retail chains are experiencing the fastest growth rates, and are expanding rapidly to meet the demand for exclusive, luxury products.
As the fast-growing middle class shows increasing demand for high-value mid-priced and premium brands, price is no longer the most important element influencing consumers’ purchasing decisions. The main factors behind this dynamic growth in cosmetics and toiletries are:
- Innovation (especially in the area of natural beauty products);
- The launch of "masstige" and premium brands;
- A rise in consumer spending and demand for higher value products;
- A gradual trend towards healthier eating and living;
- A move toward premiumization, driven by growing consumer awareness of the potential hazards of the chemicals used in cosmetics.
All of the above create major opportunities for manufacturers of health foods, vitamins, supplements and natural cosmetics and toiletries, as well as those within saturated sectors—such as oral hygiene and hair care.