25 September 2023 News In 2023, BusinesStat analysts estimated that sales of cosmetics in the country decreased by 2.6% between 2018 and 2022, from 3.49 billion units to 3.40 billion units. Sales declined smoothly between 2018 and 2020 amid the country's shrinking population along with market saturation. In 2021, sales rose by 6.4% to 3.69 billion units for the only time in the five-year period, which was attributed, on the one hand, to the recovery of business activity after the restrictive measures due to the pandemic in 2020, on the other hand, to the realization of pent-up demand due to idle stores. In 2022, due to the crisis, sales of cosmetics in Russia decreased again by 7.9% to 3.40 billion units. In 2022, most foreign brands stopped supplying cosmetics to the domestic market. Complications in foreign policy relations have also led to difficulties in supplying Russia with raw materials for cosmetics production. About 60-70% of ingredients used in the cosmetics industry were previously supplied to the Russian market from abroad. The country has production of basic components, such as glycerin, propylene glycol, gel formers, also among domestic companies there are producers of extracts, fragrances and surfactants - but this is only a small part of the ingredients needed to produce cosmetics. The most difficult situation is with active substances in skin care products, which require complex scientific developments, as well as with raw materials for decorative cosmetics, especially pigments for the production of mascara and lipsticks - these components cannot be replaced by Russian analogs yet. China and India are mainly considered as alternative suppliers of raw materials. Some components are planned to be supplied from Turkey. However, the change of the recipe and the search for new suppliers led to a decrease in the production of cosmetics in Russia and an increase in its cost. But at the same time, the weakening of competition in the market has become a positive moment for Russian cosmetics manufacturers. After the departure of foreign brands, the range of cosmetics in Russia was significantly reduced, and retailers were forced to replace the lost products with Russian analogs. Together with the fall in disposable incomes of Russians, the demand for Russian and Belarusian cosmetics has significantly increased, thanks to which retailers began to cooperate even with small brands, which was not observed before. Source: Unipack.Ru Become an exhibitor at the Global Ingredients Show and demonstrate your products to a wide audience. Book a stand