Russian cosmetic market has witnessed phenomenal growth till the beginning of the financial crisis that emerged towards the end of 2008. Cosmetics & perfumery industry has witnessed 10.3% annual growth in 2008, with total industry sales value surpassing US$ 9 Billion mark for the first time. Rising purchasing power, entry of large international cosmetic giants, favorable consumer behavior and well-established distribution network have transformed the cosmetic industry landscape in Russia over a period of time.
The cosmetic industry will witness a slight slowdown in its growth level due to contracting purchasing power in 2009. We expect a marginal impact of slowdown on sales of cosmetic products till the first half of 2010. The shift in consumer preference from luxury and branded products to mass market segment products will rescue the industry from negative growth and demand contraction. Consumers will diversify their single spending on luxury products to multiple mass market products and will still continue with their preference for cosmetic products despite the declining purchasing power.
We expect the industry to recover by the beginning of the second half of 2010, driven by economic recovery, rising consumption levels and positive outlook on consumer purchasing power. Despite the slower growth level projected for the next one year, we place Russia as one of the favorable destinations for cosmetic industry investments among the emerging cosmetics markets worldwide, which gives positive outlook for industry in long terms.
Our research study “Russian Cosmetics Market Forecast (2008-2012)” will help consultants, industry analysts and vendors to get in-depth knowledge on the current, past and future performance of the industry. The report gives a detailed segment-wise analysis of the cosmetics industry in Russia along with the key regulatory policies in the country. It also studies the future growth avenues and the roadblocks in front of the industry. The future outlook mentioned in the report has been derived by interacting with various industry veterans, developers, and analyzing information from research papers, journals and our industry-specific, in-house developed models.
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