Cosmetics market in Russia - statistics & facts
With a large consumer base and a popularity of makeup in the country, Russia is an attractive market for beauty, cosmetics, and personal care brands. With a revenue of over three billion U.S. dollars, it is the major cosmetics market in Eastern Europe. Its growth was hindered by the exodus of Western brands in response to the war in Ukraine in 2022. The market, which was largely dependent on foreign products, saw a decline in imports in that year. The segments of luxury cosmetics and fragrances were most heavily impacted by the market exits, as Russian companies were least represented in them.
The Russian cosmetics industry is currently undergoing a shift in import origins and an increase in domestic production as a result of the war in Ukraine and subsequent sanctions on Russia. Following a decline in 2022, the beauty and personal care revenue is forecast to grow at a moderate rate until 2028.
Major Western cosmetics brands suspended operations in Russia
Chanel, Coty, Estée Lauder, L'Oréal, LVMH, Lush, and L'Occitane are some of the companies that suspended operations in the Russian market. The assets of the latter were sold to the local management. Russia was L'Occitane's seventh-largest market in the fiscal year ending March 31, 2022. Furthermore, LVMH's Sephora closed its stores across the country. These developments strengthened the market presence of domestic retailers, such as Ile de Beauté, which took over former Sephora stores, and Zolotoe Yabloko (Gold Apple). Products of Russian, Asian, Middle Eastern, and Turkish companies replaced the Western ones, while some retailers launched or expanded their own brands.Key market segments
Personal and skin care dominate the Russian beauty and personal care market. The revenue of skin care products experienced drawbacks in 2020, due to the coronavirus (COVID-19) pandemic, and 2022. However, the market size is expected to grow gradually between 2023 and 2027 and reach almost six billion U.S. dollars at the end of that period. Similar trends were expected in other major market segments, decorative cosmetics and fragrances. The revenue of decorative cosmetics was expected to exceed pre-pandemic levels only in 2026. Within pharmaceutical cosmetics, face skin care remedies were the most-demanded products.The Russian cosmetics industry is currently undergoing a shift in import origins and an increase in domestic production as a result of the war in Ukraine and subsequent sanctions on Russia. Following a decline in 2022, the beauty and personal care revenue is forecast to grow at a moderate rate until 2028.
