Russia - Commercial Guide
Cosmetics and Perfumery Ingredients

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2019-10-13
Overview> There are more than 65 million potential buyers of cosmetics in Russia that show consistent interest in beauty products. Experts estimate that Russian women spend about 12-15% of their income on fragrance and cosmetic products every year, a greater percentage than in Western Europe. The skincare segment is actively developing, along with natural cosmetics and men’s lines.
There are 380 companies in Russia engaged in the production of 7,500 perfumes and cosmetics product lines. Henkel Rus, Procter & Gamble, and Faberlic are the industry leaders, with a total market share of 36%.

The position of Russian manufacturers is strengthening as they invest in innovative formulas, scientific research, and improved product quality. Consumers are increasingly choosing Russian cosmetics because they appreciate their natural characteristics and competitive prices. 

In total, there are about 10 production facilities in the country for processing and obtaining plant-based perfumery and cosmetic raw materials. Currently, all basic formulations of cosmetic and perfumery products are brought from international exhibitions; generally, they are based on imported raw materials that are difficult to find in Russia, due to the undeveloped domestic raw material market.

Up to 90% of components are now imported into Russia, except for basic surfactants. For example, 100% of UV filters, preservatives, pigments, dyes, fragrances, some functional ingredients and tropical oils are imported. The main importers are Germany, France, and China. For 20 years, Russian companies have been working on the production of dihydro quercetin, polyprenols, and several other enzymes, but none has achieved their widespread use in cosmetics. There are several essential oil production facilities in Crimea and the North Caucasus, whose products are almost completely exported. In Siberia, there are several production facilities for obtaining fir and pine oils, which are also mainly produced for export.

The domestic market of basic surfactants is gradually developing. Synthesis Plant (NORKEM) is a large player in producing surfactants and polyethylene glycols.

There are several Russian plants that process cosmetic raw materials:
1. Two plants for the processing of coniferous greens, one for deep processing.
2. Several (two - four plants) focused on production of simple extracts - oil, glycerol, propylene-glycol.
3. Several production plants in the Krasnodar Territory and one in the Moscow region that specialize in carbon dioxide subcritical extraction. These are focused more on the food industry.
4. Two enterprises engaged in supercritical extraction. One mainly produces total extracts, while another company specializes in the production of valuable cosmetic and perfumery, pharmaceutical components. Collectively, they remain insufficient to meet the demand of growing production and consumer demand.

It is challenging to estimate the Russian market’s size, but it is possible to identify the lower limit of the Russian demand for raw materials. For example, Faberlic spent $16.1 million on raw materials last year. According to a market insider, the total raw materials cost of all cosmetics and perfumery companies operating in Russia has the potential to reach $200 - $300 million. Trade Events> International Specialized Exhibition Interexpo/Interbytchim/Intercosmetics
March 2020
Moscow
Web Resources> Association of Manufacturers of Perfumery, Cosmetics, Household and Hygiene goods
Russian Association of Perfumery and Cosmetics  

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