During InterCharm 2018, held in Moscow on October 24-27, 2018, there was a special focus placed on the current state of the Russian beauty market, and it's potential for growth and expansion.
Russia currently occupies 4% of the global beauty market, according to Anna Dycheva-Smirnova, managing director, Reed Exhibitions Russia. Volume-wise, it currently sits in 4th place in Europe behind Germany, France and the U.K. As far as per capita consumption of cosmetics, Russia comes in 6th place globally.
A Snapshot of the Russian Beauty Market
Consumption Habits and Exporting Countries
- 99% of Russian women surveyed said they buy beauty products regularly, Dycheva-Smirnova stated.
- 65.5% of those surveyed stated they seek out personal care products with natural ingredients.
- France is the "indisputable leader" when it comes to cosmetic exports to Russia, especially skin care and perfumes, followed by Germany, Poland and Korea.
How Russians buy Cosmetics and Perfume
- 31% of the Russian beauty market is perfume and cosmetic chain stores, according to Anna Anisimova of GfK Rus;
- 12% of the market is direct sales;
- 12% of the market is hypermarkets;
- 11% of the market is non-chain stores;
- 10% of the market is e-commerce;
- 10% of the market is other channels;
- 9% of the market is discounters; and
- 5% of the marker is supermarkets.
Key Trends in Retail
- In terms of imports during 2017, shampoo, eye makeup, lip makeup and powders reached more than 15% growth, according to Maxim Borovikov of RBC Market Research.
- Cosmetic and perfume retail in Russia grew by 7.5% in 2017.
Face Care
- The Russian face care sector grew at a CAGR of 8.4% during 2012-2017 and is expected to grow at a CAGR of 3.9% during 2017-2022, according to Sumit Chopra of Global Data.
- Face care makes up up 71% of the Russian skin care market due to an increase in demand for anti-aging products.
- Premium and mass face masks are the fastest growing category.
Makeup
- Makeup grew at a CAGR of 7.4% during 2012-2017 and is expected to grow at a CAGR of 3.8% during 2017-2022, according to Chopra.
- 39% of the makeup market is lip makeup.
- 32% of the market is eye makeup.
Hair Care
- Hair care grew at a CAGR of 5.3% during 2012-2017 and is expected to grow at a CAGR of 3.7% during 2017-2022, according to Chopra.
- 50.6% of the Russian hair care market is shampoo.
- Hair care products boasting natural ingredient claims are becoming increasingly popular with Russian consumers.
Body Care
- Body care grew at a CAGR of 8.4% during 2012-2017 and is expected to grow at a CAGR of 3.9% during 2017-2022, according to Chopra.
- 13.8% of the Russian skin care market is body care, making it the second largest category behind face care.
Bath Care
- Bath & shower care grew at a CAGR of 5.9% during 2012-2017 and is expected to grow at a CAGR of 5.9% during 2017-2022, according to Chopra.
Male Care
- Male care grew at a CAGR of 6.8% during 2012-2017 and is expected to grow at a CAGR of 1.8% during 2017-2022, according to Chopra.
- Men's disposable razors held the largest market share of 63% in 2017.
- Aftershaves and colognes are expected to grow at a CAGR of 3.4% from 2017 to 2022.
- 29% of Russians who agree with the statement "I spend a lot of money on cosmetics and skin care products" were male, according to Irina Bolo of Ipsos.
Sun Care
- Sun care grew at a CAGR of 6.4% during 2012-2017 and is expected to grow at a CAGR of 3.2% during 2017-2022, according to Chopra.
- Russian consumers are reportedly seeking multitasking products, i.e. UV, pollution and free radical protection.
Fragrance
- Fragrance grew at a CAGR of 5.8% during 2012-2017 and is expected to grow at a CAGR of 3.1% during 2017-2022, according to Chopra.
