Market segmentsRussians have been consistently using skin and personal care products before and during the pandemic, making it thus the largest segment of the Russian cosmetics market. Even though hair care products made up the largest revenue share, face skincare products have been reporting the highest average revenue per capita in this segment year-over-year.
As of 2020, Russian women ranked third among female representatives of the Commonwealth of Independent States (CIS) by average spending on decorative cosmetics. Eyelash mascara was the favorite product in this category. However, a general reduction in the usage of most decorative cosmetic products was reported since the beginning of the coronavirus (COVID-19) pandemic. As for the fragrance segment, revenues are set to grow in the coming years after a significant drop in 2020, which again was largely related to the pandemic crisis in the country.
Pharmaceutical cosmetics is another important pillar of the market, with face skincare remedies being the most demanded product, in 2020. Russian customers favored the most L'Oréal group's La Roche-Posey of all the premium pharmaceutical cosmetic brands in the market.
Retail trade and customer preferencesCosmetics retail trade share in Russia steadily remains at about two percent. Meanwhile, online trade of such products is steadily gaining momentum. In 2020, universal marketplaces were the major online sales generators for cosmetics. New York-founded Colgate, presented in 135 million selling points countrywide in 2020, was the dominant brand in the market with a household penetration rate of almost 67 percent in that year.
In the past years, significant shifts have been observed in the cosmetics customers' preferences. Namely, consumers revealed an increased interest in self-care products, such as face masks, bathing products, and haircare goods. Free delivery remains the foremost decisive factor for purchasing cosmetics through e-stores in Russia. Despite the preference for the traditional shopping experience, consumers among all age groups tend to spend more on average in online cosmetic stores.