Key trends of the growing perfumery and cosmetics market - p. 5 Experts commentaries on market segments - KDM ...
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1 2019-2020 / Cosmetics In Russia Key trends of the growing perfumery and cosmetics market p. 5 Perfumery and cosmetics chains increase market share p. 10 Experts commentaries on market segments p. 20-31
3
Table of contents
5. Key trends of the growing perfumery and 22. Makeup
cosmetics market
24. Hair care
7. Dynamics of global perfumery and
cosmetics market 26. Bath care
10. Perfumery and cosmetics chains 28. Sun care
increase market share
30. Perfumery
13. Purchase of cosmetics: what influences
32. Beauty salons industry
consumers' choices?
slows down
15. Perfumery and cosmetics market:
36. Cosmetology market
advertising outlook
overview
20. Face care
Russia’s perfumery and cosmetics market reality check. Free access to the relevant market
data based on international research and reliable sources. Transparent figures in details.
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4
Expert Board
Sumit Chopra, Anna Sinyavskaya, Julia Uvarova,
Director Research & Analysis, Co-owner Consultant, GfK Rus
Global Data of the M.A.Research Agency Melania Saakian,
Senior Researcher, GfK Rus
“Per capita consumption of “In 2018 retail chain sales were “Perfume and cosmetics stores
cosmetics & toiletries in Russia growing somewhat faster than so far hold the largest share.
grew from 23.3 units in 2013 to the average retail sales at 10.3% Consumption volumes are
24.8 units in 2018, which was compared to the 9.8% that they stable compared to the past year;
higher compared to both the had grown by in 2017” however, in money terms there has
global (18.9 units) and regional been a decrease of over 7%”
p. 10-12
(22.9 units) levels”
p. 13-14
p. 7-9
Irina Edemskaya, Maxim Borovikov, Arsen Pogosyan,
Strategy Research Director, Head of Analysis Group, CEO of Professional Aesthetic
OMD OM Group RBC Market Research Medicine Digital Media 1nep.ru,
Andrey Skorodumov Digital Marketing Expert
Head of Productivity, OMD OM Group
“In 2018 6 categories in the beauty “In 2018 the beauty salon and “Juvederm is an obvious leader
and personal care segment were hairdresser market in Russia in the area of contour correction,
in the top 20 leading categories in grew by 1.2% in nominal terms, whose well-thought product
terms of advertising activity with while decreasing by 3–4% in range and brand variety
shower gels leading the pack” real terms” allowed it to occupy 26% of the
market”
p. 15-19 p. 32-35
p. 36-38
5
Key trends of the
growing perfumery
and cosmetics market
Anna Dycheva-Smirnova, Managing Director,
Reed Exhibitions Russia (InterCHARM organiser).
Actual information about beauty industry:
@anna_dycheva
Russian perfumery and cosmetics market in 2018 Also, a large number of respondents - 59%, prefer
reached about 654 billion rubles, and, according to natural cosmetics at a competitive price. A quarter
Global Data research agency, by 2023 it will have of respondents are ready to buy natural cosmetics,
reached the figure of 830 billion rubles. even if it is more expensive. Those who do not pay
attention to the ingredients of beauty products
Cosmetics ingredients remained in the minority: 12% of respondents do
not pay attention to this point, 3% instead of buying
are in the forefront natural cosmetics prefer analogues at a better price,
A modern consumer has an ever-increasing number and only 1% do not buy natural cosmetics in any
of information as they use many channels of its cases, even if it is significantly cheaper.
receipt, for this reason it is becoming increasingly The increasing popularity of global veganism has an
difficult for companies to meet increasing demands impact on the beauty industry as well. From being
of consumers. At the same time, their perception is a very niche sphere, this movement has become
also changing, especially among representatives of widely spread: according to forecasts, by 2025 the
the Generation Z. global market for vegan cosmetics will have reached
almost $21 billion, showing an average annual
According to a research carried growth rate of 6%.
out by digital agency Compose Social responsibility is growing
[d] Creative, 75% of millennials
In 2030, 47% of the world's population is
and representatives of Generation expected to live under the threat of water
Z believe that natural skincare scarcity. Millennials, almost a third of the world’s
population, are more concerned about the
products are more effective environmental friendliness than the rest of the
6 Key trends of the growing perfumery and cosmetics market
population - 24% of people aged 16 to 24 prefer ILLON company, it has created the world's only
cosmetics that save the water resource either LED-O hydrogel mask for LED therapy. Another
while production or using. This lies under the interesting example: DEEP SKINs fabric masks
popularity of the waterless trend: dry shampoos work by the principle of iontophoresis that allow
and masks, creams in sticks, powders that turn contents of the mask to be absorbed by the skin
into foam, cosmetic products where water is 8.6 times faster.
replaced by herbal ingredients such as rose
water. Some companies find another alternative Personification and technology
- rainwater. South Korean conglomerate still are ahead
Amore Pacific plans to use 32 tons of such raw
Due to the fact that it is becoming increasingly
material. Another industry leader, Unilever,
difficult for manufacturers to meet the needs of
is planning to have implemented a reasonable
consumers, the personification of cosmetics does
water consumption project by 2025. The
not lose popularity also taking into consideration
initiative is justified by the fact that more water
overproduction crisis. Often this trend goes
is wasted when consumers use their products
hand in hand with a technological breakthrough
at home. At the same time, more and more
in cosmetics industry. Now high-technology
companies eliminate to use plastic packaging or
3D printers make perfumes, masks, decorative
petroleum products in products’ composition,
cosmetics or nail coatings.
moreover, microplastic is also being replaced by
biodegradable components as all these elements Artificial intelligence and augmented reality
cause significant harm to the environment. algorithms are also used in the selection of
cosmetics and evaluating their effectiveness:
Being under the scrutiny of consumers, business compact gadgets or smartphone applications,
principles are also being considered from the sensors for acid-base balance of the skin, smart
perspective of social responsibility. Concept mirrors that analyze the skin and predict where,
of fair trade now plays not the last role. It for example, inflammation or wrinkle will
frequently applies to such components as shea appear.
butter or Brazil nut, cocoa, argan oil, as they
are often produced on small enterprises in Male audience
Madagascar, Ghana, Burkina Faso or Dominican
strives for equality
Republic.
Millennials and representatives of Generation Z,
Masks remain popular active consumers of the men's cosmetics, strive
to go beyond the binary. Considering this issue
Since 2015 masks continue to be one of the fastest
from the perspective of cosmetics consumption,
growing market segments. In 2018 in Russia face
the consumption of male decorative cosmetics
masks were sold in the total amount of $7 million.
has increased and, moreover, such products
Considering Russia, 33 million masks for skincare are being developed for specific male needs.
were sold in quantitative terms. Also, changes are taking place in the design of
In the context of this trend, the textures, formats packaging for men cosmetics: minimalist ones
and ingredients of the masks are being updated. are being replaced by bright and catchy, as one of
According to the Mintel research company, honey the manifestations of the struggle against gender
and activated carbon were the most popular stereotypes.
components among ingredients of face masks
in 2018. The format of LED masks is gaining
popularity. According to the information by
7
Dynamics of global perfumery
and cosmetics market
Sumit Chopra, Director Research & Analysis,
Global Data
The cosmetics and toiletries sector saw some demand for value products in the country. A low
game-changing trends and innovations overtime unemployment rate of 4.8% (based on GlobalData
and the beauty concepts are only getting Macroeconomic Indicators) and the projected
better and more accommodating. Right from improvement in the country’s economy will
consumers being on the journey of exploration continue to support growth in the industry.
and exhibiting some unique preferences to
entrepreneurship boiling over, with young, Currently, improving business conditions,
independent and private-label brands supporting rising investment, recovery of global oil prices
a surge in creativity, Russian cosmetics and are ensuing rise in exports, creating better
toiletry market remains distinctive and enjoying employment opportunities in 2018. These factors
the uptake of global beauty trends. led to steady growth and with over 144 million
Despite the crisis of 2014, cosmetics and inhabitants and high urbanization rate (74%
toiletries* sector grew at a higher rate compared urban population), Russia continues to be one
to other Eastern Europe countries such as of the most attractive cosmetics and toiletries
Slovakia, Poland and Ukraine. Sector witnessed market in Europe.
a stable growth during 2013-2018 at a CAGR of
6.4%, and is expected to grow from RUB654.5
billion (US$10.7 billion) in 2018 to RUB830.6
Cosmetics and toiletries industry
billion (US$12.3 billion) by 2023, registering a in Russia
stable CAGR of 4.9%, during 2018–2023.
Graph 1.
Russian financial crisis during the period of
2014-2017 negatively impacted consumers CAGR 2013–2018: 6.4% CAGR 2018–2023: 4.9%
Industry size (value)
purchases and price sensitive nature led to
trading down few product categories, thus
RUB 481.1 RUB 654.5 RUB 830.6
increasing demand of mass-market products. Billion Billion Billion
However, increased prices of the imported
products, raw material and exchange rates led
to growth in the cosmetics and toiletries sector 2013 2018 2023
after the crisis of 2014.
Russia being the largest market for cosmetics Skincare is the largest sector with value sales of
& toiletries in the Eastern European region, RUB156.5 billion (US$2,560.7 million) in 2018 and
accounted for 42.1% share of total value sales is also forecast to register the fastest value growth
in 2018. The improving economy, together at a CAGR of 5.8% during 2018–2023, followed by
with rising disposable incomes, is spurring suncare (5.5%) and male toiletries (5.3%).
8 Dynamics of global perfumery and cosmetics market
Competitive Landscape collection into Russia before rolling out across
Europe. Beauty retailers such as Ile de Beauté
Russian market is highly fragmented with and L'Etoile also expanded their portfolio to get
multinational players Avon, Oriflame and a share of pie with the launch of new products
Chistaya Liniya leading the sector, supported by in the market. 2018 also saw L’Oréal’s Russian
strong bran d image. While Avon accounted for a
subsidiary extending its production plant in
value share of 5% in 2018, Oriflame and Chistaya
Kaluga to meet increasing consumer demand and
Liniya held value shares of 2.9% and 2.1%
American FMCG behemoth Procter & Gamble
respectively. Always, which is owned by Procter
has reaffirmed its commitment to the Russian
& Gamble, held a value share of 2% in 2018 and it
market, despite cooling relations between the
offers products in the feminine hygiene sector.
USA and Russia.
Furthermore, private labels accounted for a value
share of 1.5% in the same year.
Trends in consumer behavior
Effective marketing and promotional activities,
along with strong research and development Per capita consumption of cosmetics & toiletries
support to produce quality products continue in Russia grew from 23.3 units in 2013 to 24.8
to help leading players to gain share in the units in 2018, which was higher compared to
market. However, domestic players are also both the global (18.9 units) and regional (22.9
improving their position with competitive units) levels. Per capita consumption in Russia is
pricing and innovative marketing campaigns. expected to increase further and reach 26.2 units
For instance, Avon launched its first K-beauty by 2023.
Sector analysis
Table 1. Graph 2.
Leading volume sector: Skincare Fastest-growing sector: Feminine hygiene
Sector volume (million units) Sector CAGR
Sector 2013 2018 2023 CAGR (2013–2018) CAGR (2018–2023)
Feminine hygiene 337.7 403.1 441.4 3.60%
Feminine hygiene
1.83%
Fragrances 115.3 118.2 118.5 0.50%
Fragrances
0.04%
Haircare 355.6 380.4 390.9 1.36%
Haircare
0.55%
1.18%
Make-up 197.8 209.7 221.1 Make-up 1.06%
1.30%
Male toiletries 506.3 539.9 577.9 Male toiletries
1.37%
0.87%
Oral hygiene 252.3 263.4 269.6 Oral hygiene 0.47%
0.82%
Personal hygiene 627.1 653.3 680.1 Personal hygiene 0.81%
1.08%
Skincare 948.1 1000.7 1056.8 Skincare
1.10%
2.26%
Suncare 7.8 8.7 9.5 Suncare
1.75%
*Cosmetics & Toiletries sector includes following market in the GlobalData database: Feminine Hygiene, Fragrances (Perfumery),
Haircare, Make-up, Male Toiletries (Male care), Oral Hygiene (Oral Care), Personal Hygiene (includes Bath & Shower, Soap &
Anti-Perspirants & Deodorants), Skincare (includes (Hand care, Depilatories & Make-Up Remover apart from Facial care & Body
care) and Suncare market. Excludes, Baby Care which is covered as a separate sector
Dynamics of global perfumery and cosmetics market 9
Consumer graphics indicates that consumption Pure Beginnings (Pty) Ltd has launched its
of cosmetics & toiletries products is higher conditioning shampoo with marula oil under
amongst females than in males. Further, older the Pure Beginnings Organic Kids brand name
consumers, aged above 55 years, accounted that is said to contain marula oil that is high in
for the highest consumption of cosmetics &
anti-oxidants, vitamin C and E as well as oleic
toiletries products with 30.6% volume share in
acid that helps to seal damaged hair and lock in
2018.
moisture. According to the brand, the product is
sulphate free; it is presented in a 250ml plastic
35% of Russian shoppers are always or often pump bottle and is priced at around 11.00 EUR.
influnced by how ethical, environmentally- Furthermore, the brand says that the product
friendly or socially-responsible the product contains 99.5% natural ingredients and it carries
or service is** the eco cert certificate for an organic cosmetic.
Recently in Russia, Grand A.V. company has
62% of Russian shoppers agree that they
released a new natural essence mask in a konjac like to experiment with new proucts under
variety that offers moisturizing-repairing-anti skincare and makeup segment**
age properties and an addition of konjac that
may attract ingredient-aware shoppers. The
sheet mask is suitable for all skin types, but is Natural Element has launched its Bedazzled night
especially recommended for dry and dehydrated cream under the Phenome banner that is claimed
skin. The konjac mannan extract is descried as to be rich in various active ingredients that is said
environmentally-friendly and obtained by multi- to nourish and lubricate tired skin with a formula
filtration, and it has a long-term softening and
consisting of apple, gingko biloba, and acerola
moisturizing effect due to ability to create a
extracts. Presented in an overboxed 50ml glass
thin film that retains moisture, enriches skin
pot, the anti-aging skincare offering is claimed to
with valuable fatty acids and lipids and prevents
dehydration. The active ingredient is also be free from paraben, SLS, SLES, petrolatum and
claimed to improve intracellular metabolism, mineral oils, paraffin, PEG, chemical sunscreens,
which promotes more rapid restoration of phthalates, MEA, DEA, TEA, formaldehyde,
skin structure and also moisturizes dry skin. artificial colors, fragrances, and animal
Also, Delipap Oy has released a new Vukkoset ingredients. According to the brand, the product
100% Bio branded biodegradable thin sanitary is for the face, it brightens, is suitable for all skin
towel that features an environmentally-friendly types and should be used at night. Furthermore,
composition and is suitable for sensitive skin.
the brand explains that the ingredients, apple,
gingko biloba, and acerola extracts are known for
62% of Russian shoppers are always or often their anti-aging, blood vessls strengthening and
influnced by how the product or service lightening properties. Other active ingredients
impacts my health and wellbeing** intensify the rejuvenating effect and restore
appropriate level of skin hydration, elasticity and
resilience.
** According to GlobalData's 2018 Q4 global consumer survey
10
Perfumery and
cosmetics chains
increase market share
Anna Sinyavskaya,
Co-owner of the M.A.Research Agency
The Russian market of perfumes and cosmetics somewhat on the previous year, amounting to
makes up 2.3% of the global market and is one 10% while total sales closed in on RUB 780 billion
of the five largest markets in Europe in terms of (including VAT). According to M.A. Research
sales. In 2016-2018 it grew at a sustained rate of estimates, the market volume in US dollars grew
7-10% per year. In 2018, M.A. Research analysts by 3.9%, reaching USD 12.6 billion (at an exchange
noted that the market growth rate slowed down rate of RUB 61.7 to the dollar).
The Russian perfumes and cosmetics market in 2014-2018 and estimated market volume in 2019
900,0 16%
Graph 1. 15% 807,5
776,4
800,0 14%
706,4
700,0 637,9
11% 12%
593,9
600,0 10%
10%
500,0
7%
8%
400,0
6%
300,0 4%
4%
200,0
100,0 2%
0,0 0%
2015 2016 2017 2018 2019E
�e volume of the market of perfumes, cosmetics and accompanying products, billion RUB.
Growth rate (RUB)
The perfumery and cosmetics market volume includes retail sales of cosmetics, perfumes, personal hygiene products, cosmetic
accessories, health and beauty equipment, accompanying goods sold in perfume and cosmetics stores, including ins tores that sell
professional cosmetics and equipment.
Source: The Federal Statistics Service, FTS, SBIS, estimates by M.A. ResearchPerfumery and cosmetics chains increase market share 11
The index of units sold, according to the Federal Given the favorable market conditions that emerged in
Statistics Service, was 105% in 2017 and 107.3% in 2018, 2017-2018, perfume and cosmetics chains continued to
which means sales of perfumes and cosmetics were expand their market share. According to M.A. Research
growing in terms of units of product sold. The faster estimates, in 2017 their share of the market was 71%
growth in the retail of perfumes and cosmetics had to do while in 2018, preliminary estimates suggest it had
with the increase in wholesale and retail prices resulting grown to 75%, if drogerie chains are taken into account.
from the weakening of the ruble throughout the year.
The share of perfume and cosmetics chains not including
The market growth is continuing to be driven by the drogerie chains, including their sales through their own
perfume and cosmetics retail chains, including drogeries, online stores was up last year: 49.5% in 2018 vs 45.9% in
which together accounted for about 75% of the market 2017. With drogerie chains taken into account, the share
in 2018. Perfume and cosmetics retail chains first began went up from 71% in 2017 to 75% in 2018. Retail chains
appearing in Russia in the late 1990s and in the more than remain the main sales channel or perfumes and cosmetics
twenty years since then the sector has grown into a key and this trend is expected to continue in the future.
sales channel for perfumes and cosmetics, including for
In 2018 retail chain sales were growing somewhat
professional products. According to M.A. Research in
faster than the average retail sales at 10.3% compared
November-December 2018, there were some 1300 chains
to the 9.8% that they had grown by in 2017. The growth
operating in Russia, including 276 drogerie chains or
rate was up as a result of an increase in the revenue
chains running outlets in formats very similar to drogeries.
of retail chains from sales of professional cosmetics
Perfume and cosmetics chains and drogerie chains
and accessories as well as online sales of perfume and
together operate over 19,500 stores, according to M.A.
cosmetics chains.
Research estimates, and in the past three years the number
of stores has more than doubled, from 9,600 to 19,500. Sales of drogerie chains slowed down significantly
in 2018: 10% vs 28% in 2017 (only sales of perfumes,
Segmentation of the perfumery and cosmetics, accessories and accompanying goods
cosmetics retail market by sales channels are taken into account) Analysts of M.A. Research
in money terms, 2017-2018 (estimate), % hypothesise that this had to do with the gradual
saturation of the drogerie market, rising prices and
Graph 2.
stiffening competition within the format. In 2018 the
share of the format remained practically the same at
2017 71 8 15 6 25.2%, versus 25.1% in 2017, while the sales growth rate
was comparable to the average for the market.
Regional expansion of perfume and cosmetics chains has
2018E 75 8 12 6 been slowing down over the past three years with growth
coming from drogerie chains, however in 2018 the rate
at which new drogerie outlets were being opened slowed
Perfumery and cosmetics retail chains (including drogeries) down as well. Gradually, retail chains are shifting focus
Direct sales / catalogue sales to maximising the performance of existing outlets as the
Russian market of perfumes and cosmetics is maturing.
Other sales channels (including online stores, FMCG super
In 2019 sales growth of the perfume and cosmetics
and hyper markets, stores that are not part of any chain)
retail chains are expected to slow down to 11-11.5% as
Pharmacies companies are forced to raise prices, thus driving down
the purchasing power of the consumers.
Sales of cosmetics and perfumes through the online stores
of specialized chains are included in perfume and cosmetics In the ranking of the largest perfumes and cosmetics
chains (including drogeries) retail chain the first place is firmly held by L'etoile, the
Source: The Association of Direct Sales, DSM Group, second place is held by the largest drogerie chain Magnit
company data, SBIS, estimates by M.A. Research while the Rive Gauche chain of perfume and cosmetics12 Perfumery and cosmetics chains increase market share
The largest perfume and cosmetics retailers by market share in 2016-2018.
Graph 3.
16
14,3 14,3 14,4
14
12
10,4
9,9 L'etoile
10 8,9
Magnit Cosmetic
8
6,6 Rive Gauche
6,1 6,0
6
Ile de Beauté
3,7
4 3,2 3,0 Ulybka Radugi,
2,3 2,4 2,5
Alpari
2
0
2016 2017 2018E © M.A. Research
The revenue of drogerie chains is only included partially, without the sales of the other products they offer
Source: company data, expert estimates, estimates by M.A. Research
supermarkets is in third place. Recent years saw several merger and acquisition deals (the Alpari chain was
drogerie chains make into the top ten players of the purchased by the management company of Ulybka
perfume and cosmetics retail market: Ulybka Radugi, Radugi), through increases in the profitability of L'etoile,
Girlfriend, Ruble Boom. Single brand stores and multi- Rive Gauche and Ile de Beauté chains and as a result of
brand supermarkets are maintaining their positions in an increase in sales through on-line stores operated by
the market, these include Ives Roches, Golden Apple, major retail chains.
Ile de Beauté.
In 2018 the market share of the top five retailers
According to estimates by M.A. Research, in 2018 increased to 36.3% while the total share of L'etoile,
L'etoile 's market share remained pretty much the same Ile de Beauté and Rive Gauche decreased marginally to
as last year growing marginally from 14.3% to 14.4% as 23.4%. The market share of Magnit Cosmetic continued
the company's growth slowed down and it closed some to grow (from 9.9% to 10.4%) while revenue growth rate
of its outlets. The shares of Rive Gauche and fell by 6 percentage pints compared to 2017. The share of
Ile de Beauté shrank a little. the five largest companies increased by 0.5 percentage
The market share of Magnit Cosmetic grew from 9.9% points in 2018, primarily as a result of revenue growth
to 10.4% in 2018, as the chain's both financial and enjoyed by Magnit Cosmetic and Ulybka Radugi.
quantitative performance improved. On the whole the
It is obvious that over the past three years supermarket
perfume and cosmetics market is trending towards an
chains have been growing slower than drogerie chains
ever increasing gap between the revenue of the market
as customers have been switching to cheaper drogerie
leaders and the rest of the market players.
stores or to online retailers in search of better deals. It is
In 2016-2017 the market of perfume and cosmetics expected that in 2019 the trends towards slower revenue
retail chains continued to be consolidated with growth growth for supermarkets will continue while drogerie
happening primarily as a result of regional expansion chains will be growing at the same rate as the market
by such chains as Magnit Cosmetic and Ulybka Radugi, average or a little faster.13
Purchase of cosmetics: what
influences consumers' choices?
Julia Uvarova,
Consultant, GfK Rus
Melania Saakian,
Senior Researcher, GfK Rus
According to 1 GfK's studies, in 2019 the Russian the past year; however, in money terms there has been a
market of beauty and personal care products continued decrease of over 7%. Promotions are among the factors
its downward trend, which had already begun last year. which negatively affects monetary turnover, but at
the same time allows store chains to withhold buyers.
Sales channels trends However, this had almost no impact on the frequency
of purchases: there is even a small decrease.
The decrease in the market turnover can be explained
by several factors: first, this year consumers cut their The drugstores channel, in which Magnit Cosmetic is
expenses on perfumes and makeup, which account the leader, continues growing. The growth in money
for about a third of the market by value; second, terms is more noticeable than in pieces; this may be
perfumeries, which are the key channel in the personal due to the lesser importance of promotions in this
care market, are losing their positions to discounters, channel. Another hypothesis is that buyers started
neighbourhood shops and e-commerce. switching over to more expensive products, which they
started to see on the shelves of drugstores.
Magnit and Fix Price were the main contributors to the
growth of discounters turnover. Compared to the same period of the previous year,
the personal care products market shows significant
E-commerce is showing a two-figure growth: a 23% structural changes that indicate a change in consumer
increase in terms of money and pieces; this channel has priorities and, as a result, a change in their purchasing
already overtaken supermarkets in significance and behavior.
share of sales.
Table 1.
The main source of e-сommerce growth is the switching
Market share by sales channel
over from other channels (mainly perfumery chains and
drugstores). The channel was thus able to attract new All sales channels 100,0%
customers. It should be noted that the average price per Hypermarkets/C&C 15,6
package on the internet is significantly higher than the Supermarkets 6,0
average market price; this could mean that buyers think Discounters 14,3
it is more advantageous to buy expensive categories/ Chain perfumeries and drugstores 37,5
brands through this channel. Independent perfumeries and household stores 6,0
E-commerce 7,9
Perfume and cosmetics stores so far hold the largest Other channels 12,7
share. Consumption volumes are stable compared to
Source: According to the GfK consumer panel, 20,000 households,
1
GfK consumer panel data, 20,000 households, for the period from July 2018 in rubles, from July 2018 until June 2019. All Russia. Direct sales
to June 2019 year-on-year. All Russia (urban and rural Russia). were not included in the analysisGraph 1. Table 2.
Trends of the perfume and cosmetics sales channels Share of categories in the personal care market
Growth in rubles, % Growth in pieces, % Category share Category share
in rubles, July in rubles, July
All sales channels -2,1 2017-June 2018 2018-June 2019
-1,6
-3 All personal care
Hypermarkets/C&C 100 100
-10 product categories
Supermarkets 2 Hair care cosmetics 23,5 24,2
-3
Facial care comsmetics 12,2 12,8
Discounters 17
11 Decorative cosmetics 13,5 12,7
Chain perfumeries -7 Body care cosmetics 5,5 5,6
and drugstores -1
Deodorants 5,7 6,2
Independent perfumeries -20
and household stores -16 Men's cosmetics 2,2 2,2
E-commerce 23 Bath and shower cosmetics 10,7 11,0
23
Sun tan cosmetics 0,7 0,7
-6
Other channels
-7 Fragrances 17,2 15,3
Oral hygiene products 8,8 9,2
Source: GfK consumer panel data, in RUB / pcs, for the period from
July 2018 to June 2019 year-on-year. All Russia. Direct sales were Source: Gfk consumer panel data, rubles All Russia.
not included in the analysis Direct sales were not included in the analysis
The main changes include a significant decrease in the - A trend towards naturalness and simplification: a desire to use
share of expenses on make-up and perfumes, and an the minimum amount of products to maintain natural beauty.
increase in expenses on face care cosmetics. Over the - Healthy lifestyle: a healthy lifestyle and proper nutrition
past year, face care products sales have grown by 3% to support health and looks leads to significant changes in
in rubles and 10% in pieces, which, given the market consumers' philosophy, including in the area of shopping.
stagnation, is a very good result. In the category, As a result, there is consumer demand for moderation in
there is an increase in products that are positioned as everything.
natural, as well as anti-aging cosmetics.
- Trend towards informed consumption: the market stagnation
Future consumer trend in cosmetics suggests that more and more consumers are beginning to think
about the quantity of products they buy: are there too many?
We live in the age of technology. Technologies
- Personalization: consumers become very demanding and
have a significant impact on how consumers buy, want to choose their personal care products and, in accordance
interacting with brands and retailers. Key global with new trends, there are a lot of opportunities for opening
consumer trends include "Life without difficulties" new niches and segments.
and "Strength of information": using various devices
and social networks, having instant access to goods - Anti-age trend: The desire to look good in one's mature age is
reflected in the growth of anti-aging products.
and information about them anytime, anywhere,
consumers are happy to accept everything that helps - Transition from environmental citizenship to environmental
them save time and effort, including influencers' activism. If earlier we saw an increase in people's
tips. Soon we will see the further development of new environmental awareness, now consumers are ready to take
channels, and the importance of mobile devices and action to meet their values, and favorably respond to the
social networks for the market will grow. Therefore, actions of manufacturers and retailers taking responsibility
manufacturers and retailers should think about how and committing to at least reduce their environmental impact.
these tech and media trends can be used for growth. Manufacturers are becoming more active: more and more
products are appearing on the market on the packaging of
Among the significant trends in the beauty industry, which you can see the symbols confirming the use of natural
which we are constantly studying, the following should ingredients in the composition and the use of recycled materials
be highlighted: or renewable resources for production of the packaging.15
Perfumery and cosmetics
market: advertising outlook
Irina Edemskaya,
Strategy Research Director, OMD OM Group
Andrey Skorodumov,
Head of Productivity, OMD OM Group
OMD OM Group experts estimate that key areas in which Aggressive discounts allow companies to maintain
marketing communications in the beauty and personal care sales in the segment, however, Neilsen confirms:
segment were developing in 2019 were: enriching customer this mechanism has already been pushed to the limit
experience in communication with the brand in the digital and in 2019 the growth in the use of promotional
environment as well as through partnership with retailers. campaigns and discounts has slowed down.
Promotional campaigns The growth in the share of sales under
are full steam ahead at discounted rates slowed down in 2019
�e share of promotional sales in FMCG
FMCG manufactures use promotional campaigns
52% 49% 53% 51%
as an important tool in their advertising: in some 45% 42%
by volume
by volume
by volume
categories up to 80% of all merchandise is sold MO
by value
by value
by value
PRO The capabilities
through promotional campaigns. In 2018 6 categories of this mechanism
2017 2018 2019
in the beauty and personal care segment were in the are nearing
�e average discount
top 20 leading categories in terms of advertising exhaustion
activity with shower gels leading the pack.
% -22% -24% -24%
Graph 1. Sales in sub-categories in rubles in 2018, million Trends by 2017 10%
120 000 8%
100 000 6%
80 000 4%
60 000 2%
40 000 0%
20 000 - 2%
00 -4%
Facial care Fragrances Foaming Decorative Men's Hair care Oral Children's Body care Sun tan
cosmetics cosmetics cosmetics cosmetics cosmetics hygiene cosmetics cosmetics cosmetics
and hair dies
Even as the share of discounted sales is growing, the total sales in the segment keep increasing,
albeit at a slow pace (except for sun-tan cosmetics where growth lags behind the average inflation) Source: Euromonitor16
Graph 2. The share of cosmetic categories continues to decline in the
total advertising market in Russia.
Comparison of the total advertising market to advertising purchased
by cosmetics firms
25% 10%
20%
15%
5%
10%
5%
0%
0%
-5%
-5%
-10%
-15%
-10%
-20%
2015 2016 2017 2018
Entire advertising market volume, excluding Search Cosmetics advertising market volume Share of cosmetics
Source: MediaScope, ACAR
Promotional campaigns are shifting focus from showed the most negative trend, which resulted the
simple discounts towards partnership programs redistribution of product positions: due to stable
for manufactures and retailers that seek richer investments, the category of facial care products
interaction between the consumer, the brand strengthened its position and made the top three.
and the retailer. Thus Head&Sholders teamed up
Auchan, Magnit and Pyaterochka hire Olga Buzova
as their endorser, allowing the manufacturer TV is still a leader in terms of media investment.
to boost sales while retailers were able to offer However, as the advertising clutter in other
their customers an unforgettable purchasing channels is much bigger, the real battle takes place
experience. in such channels. Thus, in the category of facial
care products, the number of active brands outside
TV is 3.5 times higher than the number of active
The amount of advertising the segment is TV players.
buying in traditional media is in decline.
The segment's investments in advertising in There is still a significant amount of
traditional media is decreasing even as the market advertisements for segment's products in the
as a whole continues to grow. printed press. However, the press, as a tool, has
long gone beyond the pages of magazines to the
Products of different categories follow this trend.
screens of laptops and smartphones.
Thus, in H1 2019, such categories as fragrances,
body care products and decorative cosmeticsPerfumery and cosmetics market advertising outlook 17
Graph 3. All subcategories, with rare exceptions, follow the general downward trend
2015, % 2016, % 2017,% 2018,% 2019 H,%
foaming cosmetics -15 -3 -9 -14 -8
hair care cosmetics
-28 -8 3 -21 18
and hair dies
facial care cosmetics 4 -9 17 -22 -1
fragrances -16 8 -4 -5 -30
-2 -18 9 -23 -8
men's cosmetics
-12 -11 0 -27 -26
decorative cosmetics
-15 8 -15 -16 -13
oral hygiene
body care cosmetics 29 -28 -52 15 -34
sun tan cosmetics -49 -64 -10 51 -19
children's cosmetics 40 -55 -28 -9 -57
Total -9 -8 -2 -16 -13
Decline > average Decline ≤ average Growth
Source: MediaScope; trend compared to the previous year
Sharp reduction in investment
in fragrances leads to the redistribution foaming cosmetics
of the shares of subcategories
hair care cosmetics and hair dies
Graph 4. Shares of subcategories by advertising costs
facial care cosmetics
35%
fragrances
30%
men's cosmetics
25%
decorative cosmetics
20% oral hygiene
15% body care cosmetics
10% sun tan cosmetics
5% children's cosmetics
0% Source: MediaScope; the amount exceeds 100%
2014 2015 2016 2017 2018 2019 because there are intersections within subcategories18
Graph 5. Number of supported brands in 2019 Digital interaction is a new tradition
28 Amid the declining advertising activity in
facial care cosmetics 126
traditional media, the user experience in the
34 digital environment is becoming the new norm
foaming cosmetics 73
and is actively developing and diversifying. Online
29 video, initially used only as a means of additional
fragrances 71
coverage, has become an independent element
hair care cosmetics 25
and hair dies 62 of the media mix. An augmented reality and
360-degree video are gradually turning into quite
15
decorative cosmetics a familiar way to make the consumer experience
56
unforgettable.
11
body care cosmetics 44 Influencers and bloggers are the main battlefield
for the segment. Estee Lauder increasingly
22
men's cosmetics 36 declares intensive investment in this area, which
6 clearly proves its effectiveness.
children's cosmetics 24
Generation Z, as a new generation of consumers,
14
oral hygiene 19 comprehends the life via smartphones and cannot
imagine it without interactive gadgets. Thus,
4
sun tan cosmetics 19
advertisers are provoked to even more active
development of new tools and areas of interaction.
ON TV IN ALL MEDIA One of such areas is eSports.
Source: MediaScope; the amount exceeds 100%
because there are intersections within subcategories
Development of new promotion channels –
e-commerce
All major categories are mainly Despite the fact that still few people prefer to buy
advertised on the national TV beauty and care products through the Internet
– only about 4% of buyers, the popularity of this
Graph 6. Costs by subcategories in 2018, mln, RUB channel is growing at rapid-fire pace. Shampoos
foaming cosmetics and skin care products are most often bought
fragrances
through the Internet.
hair care cosmetics and hair dies E-commerce is not only a trading platform.
Thanks to access to big data, it enables advertisers
facial care comsmetics
to effectively personalise both the level of product
men's cosmetics offer and the message and adaptation of a virtual
decorative cosmetics
shelf.
oral hygiene This channel is developed by online stores (for
example, ozon.ru or online units of offline
body care cosmetics
retailers) and by manufacturers themselves.
children's cosmetics
Source
Source: MediaScopePerfumery and cosmetics market advertising outlook 19
Graph 7. Share of advertising costs in subcategories by media
foaming cosmetics
fragrances
hair care cosmetics and hair dies
facial care comsmetics
men's cosmetics
decorative cosmetics
oral hygiene
body care cosmetics
children's cosmetics
sun tan cosmetics
Total
nat tv reg tv off-the-air tv print media internet outdoor advertising radio
Source: MediaScope
Graph 8. No more than 4% of buyers prefer to buy beauty and care products via the Internet, but their number is growing rapidly
Tooth paste 82,7 1,5 +40
Shampoo 80,6 3,4 +45
Toilet soap 76,9 1,4 +47
Deodorants 66,3 2 +52
Shower gels 62,5 2,6 +42
Skin care products for women 44,7 3,5 +31
Hair balsams, conditioners, rinses, masks 44,7 2,7 +46
Shaving creams, foams and gels 42,6 1,1 +31
Mouthwash 38,9 0,7 +60
Lip make-up products 37,1 2,8 +26
Women's fragrances 34,3 2,9 +26
Eye make-up products 33,9 2,9 +33
Men's fragrances 33,2 2,1 +4
Hair dyes 31,6 1,1 +76
After-shave products 30,6 1 +29
Hair styling products 27,7 1,2 +77
Bath additives 26,5 1,2 +37
Nail varnish 25,5 1,8 +12
Problem skin care products 25,4 1,9 +72
Facial skin make-up products 25,5 2,2 +21
Skin care products for men (except shaving products) 24,5 1,2 +31
Sun care products 17,1 0,9 +81
Make-up kits 13,8 1,2 +46
Bought for six months Most often via the Internet Growth of Internet shopping (2019 vs 2018)
Source: MediaScope20
Face care
Global Data, GfK Rus, MintelFace care 21
According to Global Data, the facial care sector grew • With innovation being vital for success in
from RUB 76,571.0 million (US$2,405.1 million) in the skincare sector, brands are incorporating
2013 to RUB 109,986.3 million (US$ 1,799.6 million) in superfoods such as ‘probiotics’ (lactobacillus and
2018, registering a CAGR of 7.5%, during 2013–2018. bifidobacterium), ‘green tea’, ‘algae’, ‘moringa’
The sector is expected to grow to RUB 144,161.9 million and ‘kale’, claimed to strengthen the skin’s
(US$2,131.4 million) by 2023, at a CAGR of 3.4%, during barrier function. Additionally, the influence of
2018–2023. regional beauty regimens will drive the use of
ingredients such as snail essence, yogurt, argan
The facial care was the largest category by value, oil, jojoba oil, black pine, and wild rose to gain
accounting for 70.3% share in the Russian skincare clean label positioning.
market in 2018. The desire to look young among
Russian aging population is driving the demand for
anti-aging creams which is fueling the facial care According to research company Mintel, British
product category growth in the market. consumers are less and less committed to complex
care in the tradition of K-beauty: according to a survey
According to GfK Rus, the care products' growth was of 28% of women have reduced the amount of care
mainly driven by the sales of facial masks that have products that they use over the past year. The younger
increased by 33% over the last year. While the makeup generation tends to simplify their skincare regimen. In
segment suffers a decrease in consumption (primarily the UK, Australian cosmetics A-Beauty (such brands as,
due to a decrease in frequency of purchases), facial for example, Jurlique, Sand & Sky, Lano), that mostly
masks contributed both, to attracting new consumers are characterized by naturalness and a simpler and
of the category and increasing the frequency and size more understandable approach to skincare, unlike
of purchases. multi-step Korean skincare routine, are becoming
more and more popular.
The facial care market is highly fragmented with
many players, however primarily dominated by According to this survey, the most significant changes
two major players: Unilever and L`Oreal. Both occurred in the face cleansing segment: the number
companies have strong brand presence such as of women using four or more cleansing agents fell
Chistaya Liniya (acquired from Kalina) by Unilever, from 26% to 18% within 12 months, and the number
and L'Oreal which are very popular among Russian of women using one face wash increased from 25 to
consumers. 28%. Analysts argue that a growing number of British
women prefer multi-step Korean care to the one that is
Trends influencing facial care and body care market not less effective, but is time-saving.
in Russia, according to Global Data:
• Companies and retailers are expanding their Clay masks continue to gain popularity. Manufacturers
product portfolio in face mask segment to gain experiment with formats and textures: monodose
from the growing popularity of Asian beauty trend. packaging, beautiful colors and formulas that can be
transformed - for example, clay, that turns into foam
• Micellar products catering to the facial cleansing for face washing.
need of consumers are also expected to remain
popular among Russian consumers.22
Makeup
Global Data, GfK RusMakeup 23
The Russian makeup sector is expected to grow eyeliners-markers, lash treatment mascaras; in
from RUB 73.9 billion (US$1.2 billion) in 2018 to the lip makeup category – liners, liquid lipsticks
RUB 94.5 billion (US$1.4 billion) by 2023, at a CAGR and balms; in the facial makeup category – cheek
of 5%. Per capita consumption of makeup products colour and highlighters. Thus, it may be said that
in Russia was 1.45 units in 2018; this value is driven by the current makeup trends consumers
expected to increase to 1.54 units by 2023. In 2018, have developed new favourites.
it was higher than the global level (1.1 units),
but lower compared to the regional level (1.5 units),
in 2018). Dynamics of decorative cosmetics by segments
Dynamics in RUB, %, Dynamics in units, %,
Decorative -7,9
Lip makeup was the largest category with value cosmetics, total -6,2
sales of RUB29,143.3 million (US$476.8 million) -2,4
Eye makeup
in 2018, and is also forecast to register the fastest -0,3
value growth at a CAGR of 5.6% during 2018–2023, -10,3
Facial makeup
followed by face makeup (4.9%), nail makeup (4.7%), -4,6
and eye makeup (4.5%). The active participation of Lip makeup
-10,0
the local players in the Russian makeup market, 0,2
backed by the increasing spending power of -15,2
Nail cosmetics -16,3
working women population, proved beneficial for
the overall growth of the market.
Source: GfK consumer panel data, in RUB / pcs, for the
period from July 2018 to June 2019 year-on-year. Russia at
L`Oreal maintained its leading position in makeup large. Direct sales were not included in the analysis
sector followed by Avon, Oriflame, and Coty. Health
& Beauty retailers are expanding their makeup
According to Global Data study, social media
products portfolio such as Ile de Beauté with the
platforms such as VKontakte, Instagram and
launch of Too Faced and L'Etoile with the lauch
YouTube are significantly influencing the makeup
of cosmetic brand the Balm. Moreover, In Russia,
product choice as consumers continue to follow
Guangzhou YCT Cosmetics has recently released
their favorite bloggers, vloggers (video bloggers)
a moisturizing lip balm in a pineapple, mint, and
and celebrities for inspiration on products and
banana varieties marketed under the BB Beauty
application techniques. Trending social media posts
Bar brand name that delivers a lip balm with
on VKontakte, Twitter, and Instagram on makeup
natural moisturizing oils, shea butter, and jojoba
styles are influencing young consumers and fueling
oil. The first variety is described as rich in vitamin
demand of makeup product. Beauty bloggers and
E and antioxidants delivering pleasant aromas.
YouTube tutorials are also helping consumers on
how to wear makeup and follow makeup trends.
These trends are becoming new sources of marketing
According to GfK Rus, a decline in the sales of and promotion as consumers frequently shares
decorative cosmetics is indicative of the latest “selfies” on social media with the latest makeup
trends in the beauty and personal care market. product and application beauty techniques.
An in-depth segment analysis performed by GfK
showed that the strongest decrease in the category
falls on the segment of decorative cosmetics for
According to Global Data, the "nude" positioning is
nails. This may be due to a persisting shift of
an extension of makeup trends that see a domination
consumers to professional nail services. In other
of "nude" or "makeup no makeup" look. Offering a
decorative cosmetics segments there are diverse
dry oil shine spray that is also marketed as suitable
trends observed. Categories that continue to
for "nude" hair styles is different from standard
attract consumers: in the eye makeup category
products in the category in Russia.
there was growth in sales of eyebrow products,24
Hair care
Global Data, GfK RusHair care 25
According to Global Data, the haircare sector grew
from RUB 79.7 billion (US$ 2,502.1 million) In
Chistaya Liniya,
2013 to RUB 101.5 billion (US$ 1,660.6 million) in Schwarzkopf,
2018, registering a CAGR of 5%, during 2013–2018.
The sector is expected to reach RUB125.3 billion Garnier, and L`Oreal
are the leading brands in
(US$1,852.1 million) by 2023, growing at a CAGR of
4.3% during 2018–2023.
Russian haircare market
Shampoo was the largest category by value accounting
50.3% share in the Russian Haircare market in 2018.
Naturally Professional brand name. In includes
The on-going trend for retro hair style such as “bang”,
the following varieties: Milk, Tomato, Egg, Carrot,
which is back in fashion, is creating a demand for dry
Coconut, Coffee, and Argan; tagged as natural,
shampoo which will hold the bangs and give a frizzy
organic, free from SLS and parabens. The new line has
look to the hair. Moreover, product claiming natural
drawn inspiration from food items, and the benefit
ingredients and herbal formulation are becoming
for personal care products that draw upon concepts in
increasing popular in the Russian haircare market. food and drinks is that they present consumers with
more familiar concepts, thereby making them easier
to trust.
Chistaya Liniya, Schwarzkopf, Garnier, and L`Oreal
are the leading brands in Russian haircare market.
GlobalData's 2018 Q4 global consumer survey
indicates that 66% of Russian shoppers are willing to
According to GfK Rus, haircare products remain the pay more for better quality of haircare and fragrances.
most frequently purchased category and account for
about a quarter of consumers' spending on personal
care products. There is an overall stagnation in this Shoppers in Russia believe natural and essential oils
category and hair coloring products are in the worst to be effective in beauty and grooming products.
position with a decrease of -2% and -5% in value and Therefore, the flagged active ingredients may help
volume terms, respectively, which may also be due to the product gain trust among Russian consumers.
the switching of consumers to salon services. In July 2019, Farmol company has released a new
Schwarzkopf Got2b #Oh My Nude! branded dry oil
spray for hair shine for nude hair styling variety that
According to Global Data, the emerging trend for is marketed as improving the hair shine and offering
‘natural’ products has resulted into manufacturers an aid in creating a natural-looking "nude" hairstyle.
investing in natural trend and using organic The product features "a mix of dry oils" that "will help
ingredients in their products such as L’Oreal which to cope with effect of frizzy hair, will make it shiny,
launched a new haircare lineup called Garnier soft and pleasant to touch without oily residue." The
Botanic Therapy, with natural extracts from plants. release aims to capitalize on current trends that
Furthermore, Organic Shop has recently launched see shoppers opt for "effortless," natural-looking
a new range of Bio Conditioner under the Organic hairstyles.26
Bath care
GfK Rus, Global Data, M.A.ResearchBath care 27
According to Global Data, the personal hygiene choosing products which claim to have natural
sector grew from RUB 44.8 billion (US$ 1,405.7 ingredients. In Russia, individual entrepreneur
million) in 2013 to RUB60.7 billion (US$993 Promskiy has recently launched a hands & body
million) in 2018, registering a CAGR of 6.3% liquid soap marketed under the VkusVill brand
during 2013–2018. The sector is expected to reach name that delivers a liquid soap suitable for both
RUB 77.6 billion (US$1,147.8 million) by 2023, hands and body that is tagged as environmentally-
growing at a CAGR of 5% during 2018–2023. Soaps friendly. Suitable for all types of skin, this product
were the largest category with 38% of the market comes from 100% natural and herbal ingredients,
share in 2018. and contains coconut, castor, palm, olive, and
almond, and shea oils.
Personal hygiene market is highly fragmented in
Russia with many local and international players. Companies are adopting segmentation strategy
Avon and Unilever are the major players in bath to meet specific consumers requirements. For
and shower segment. Strong brands of Unilever instance, in April 2019, CafeMiMi has recently
such as Dove and Chistaya Liniya make it the launched a range of Body Soap Scrub under
market leader in Russia personal hygiene market. the Cafe Mimi brand that combine exotic and
different fruit extracts to create an uncommon
sensory experience for the consumer. Presented
According to GfK Rus, foaming cosmetics account in 110ml plastic pots, the range comprises the
for 11% of consumer spending on personal care varieties: yuzu & feijoa, banana & lychee, and
products. There has been a 4% decrease in sales coconut & kumquat; each is claimed to be free
(in volume terms) in this category which was from paraben, mineral oil, EDTA, and MIT. This
mainly due to a decline in the soap segment: a range with combinations of extracts such as
decrease in the sales of bar soaps, while liquid kumquat, yuzu, feijoa, and basil and lychee could
soaps are growing driven by a shift from the bar appeal to those shoppers looking to experiment
soaps. Notably, the sales of larger-size liquid soap with new and different varieties in the shower
packages (500 ml and 500+ ml) are increasing, soap category.
thus, a volume decrease in sales is caused by a
redistribution of spending for longer term use.
According to M.A.Research, sales of bath and
shower products have been growing steadily over
Russia has experienced an economic crisis in the past two years. Analysts estimate the share
recent years and are likely to remain price sensitive of this category at 7-7.5% or RUB 54-55 billion in
in the short term. Many consumers therefore have 2018, with more than 62% of sales accounting for
been seeking toilteries products that offer value the mass market segment. This category includes
for money, discounts or promotions and larger both Russian and imported goods, in particular,
pack sizes. To attract savvy consumers many retail from Belarus and Korea.
outlets, as well as e-stores, are offering deals,
discounts and coupons.
The key sales channels include perfume and beauty
chains, including drogeries; FMCG chain stores;
Consumers are more keen on knowing the online stores; and independent perfume and
ingredients being used in a products and prefer beauty shops.28
Sun care
Global Data, GfK Rus, M.A.ResearchSun care 29
According to Global Data, the suncare sector grew The sun protection category
from RUB 5.6 billion (US$ 176.2 million) in 2013 to
RUB 7.6 billion (US$ 125.1 million) in 2018, registering has the largest market
a CAGR of 6.4%, during 2013–2018. The sector is
expected to grow to RUB 10 billion (US$ 148 million)
share in 2018 and is also
by 2023, at a CAGR of 5.5%, during 2018–2023. expected to witness strong
growth at a CAGR of 5.4%
In volume terms, the suncare sector grew from from 2018 to 2023
7.8 million units in 2013 to 8.7 million units in 2018,
registering a CAGR of 2.3% during 2013–2018.
The sector is expected to grow further and reach
9.5 million units by 2023, growing at a CAGR
According to Global Data, the suncare market in
of 1.8% during 2018–2023.
Russia is primarily dominated by two major players
L’Oreal and Beiersdorf. The leading players have wide
distribution channel, strong brand recognition and
The sun protection category has the largest market
invest heavily into brand promotions which makes it
share in 2018 and is also expected to witness strong
difficult for new players to enter into the market.
growth at a CAGR of 5.4% from 2018 to 2023. The
emerging concern for skin protection from harmful
UV rays is aiding to the growth of the category.
Consumers are looking for multipurpose products in
suncare market which not only cater to the consumer
specific need but also provides multiple benefits.
According to M.A.Research, sun protection category
Beiersdorf launched a line of body creams specially
accounted for no more than 1% of retail sales of
for tattooed skin - as it seeks to tap into the growing
cosmetics and perfumery in 2018. Analysts estimate popularity of skin art and appeal to a younger
the sales of sun-protective cosmetics at RUB 8 billion. audience.
The range of sun-protective cosmetics is mainly
comprised of imported goods with fewer domestic
products presented. In Russia, this category of goods
Companies are continuously innovating to provide
is characterized by a strong seasonality of sales. cross category features and innovating in application
format such as sprays. For instance, Beiersdorf
launched a sun protection spray Nivea Sun SPF
According to GfK Rus, despite a 2% volume decrease 50 protection and coolness refreshing sunscreen.
in sales year-on-year, sun-protective cosmetics Product claim to provide tan with a bronze shade,
category retained its share in consumers' spending. while moisturizing the skin and protecting it against
dryness and irritation. The cooling sensation feature
will especially appeal to consumers living in hot
According to M.A.Research experts, the key sales climates, and the product's multi-functionality can
channels include perfume and beauty chains, offer a simpler option to consumers who may feel
including drogerie; pharmacies; independent overwhelmed by the numerous product choices
perfume and beauty shops; and FMCG chain stores. available to them.You can also read
