According to the "Analysis of the cosmetics market in Russia" prepared by "Businessstat" in 2023, sales of cosmetics in the country in 2018-2022 decreased by 2.6%: from 3.49 to 3.40 billion pcs. Sales gradually declined in 2018-2020 amid a decline in the country's population along with market saturation.
In 2021, sales for the only time in five years increased by 6.4% and reached 3.69 billion units, which was explained, on the one hand, by the recovery of business activity after restrictive measures due to the pandemic in 2020, on the other hand, by the implementation of demand postponed due to non-functioning stores. In 2022, as a result of the crisis, cosmetics sales in Russia again decreased immediately by 7.9 % and amounted to 3.40 billion pcs.
In 2022, the majority of foreign brands stopped supplying cosmetic products to the domestic market. The complications of foreign policy relations have also led to difficulties with the supply of raw materials for the production of cosmetics to Russia. About 60-70% of the ingredients used in the cosmetics industry were previously supplied to the Russian market from abroad. The country has the production of basic components such as glycerin, propylene glycol, gelling agents, and among domestic companies there are manufacturers of extracts, perfumes and surfactants - but this is only a small part of the ingredients needed for the production of cosmetics.
The most difficult situation is with active substances in skin care products that require complex scientific developments, as well as with raw materials for decorative cosmetics, especially with pigments for the production of mascara and lipsticks – these components cannot yet be replaced with Russian analogues. China and India are mainly considered as alternative suppliers of raw materials. Some of the components are planned to be supplied from Turkey. However, the change of formulation, as well as the search for new suppliers, led to a decrease in the production of cosmetics in Russia and an increase in its cost.
But at the same time, a positive moment for Russian manufacturers of cosmetics was the weakening of competition in the market. After the departure of foreign brands, the range of cosmetics in Russia significantly decreased, and retailers were forced to replace the dropped products with Russian analogues. Together with the drop in disposable incomes of Russians, the demand for Russian and Belarusian cosmetics has increased significantly, thanks to which retailers began to cooperate even with small brands, which was not observed earlier.
