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According to a new research report "Russian Cosmetics Market Forecast (2008-2012)" by RNCOS, cosmetics industry in Russia will continue to witness positive growth despite the aftereffects of economic crisis. The industry will grow at a CAGR of 9% during 2009-2012 as compared to double digit growth attained in the past. The overall industry revenues are anticipated to surpass US$ 13 Billion by 2012 from below US$ 10 Billion in 2008.

The report further states that consumer preference has shifted towards mass market products due to weak purchasing power in 2009. 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 in coming years.

Consumers will diversify their spending on luxury products to mass market products but continue their preference for cosmetic products despite the declining purchasing power. Most of the cosmetic manufactures are promoting their mass segment or private label product in order to offset decline in luxury products sales. Majority of the local players have an edge over foreign companies in terms of mass segment product portfolio. The Western concept of well-being and looking good will also have profound impact on developments in the Russian cosmetics and perfumery market as consumers will become more willing to purchase cosmetics products.

"We expect the industry will recover by the beginning of second half of 2010 owing to economic recovery, rising consumption levels and positive outlook for consumer purchasing power. Despite the slow growth for next one year, we place Russia as one of the leading destination for investments among the emerging cosmetics markets," said a Senior Research Analyst at RNCOS.
 
Our research report "Russian Cosmetics Market Forecast (2008-2012)" contains an exhaustive information, quantitative data, rational analysis, impartial future forecast for the cosmetics industry in Russia. This information will help consultants, industry analysts and vendors to get in-depth knowledge of current and past performance of the industry. The report also features segment wise analysis of the cosmetic industry along with the key regulatory policies in the country. It also studies future growth avenues and roadblocks to be faced by the industry.

For more information visit: http://www.rncos.com/Report/IM100.htm