Russia Perfume Market Research Report, 2027

The Russian fragrance market continues to follow healthy lifestyle trends, such as the use of eco-friendly cosmetics and perfumes without harmful additives. In recent years, handmade organic cosmetics have become popular, and small community-based retail chains and online shops specializing in cosmetics have sprung up. Today, Russian consumers prefer smaller sizes (30 ml and 50 ml), and the lines between men and women tend to blur. Because women seek a different olfactory world and are seduced by very trendy blended perfumes, this trend mostly comes from niche brands. Layering is fine, too. In addition to the floral, fruity, and/or gourmand scents that are so popular in Russia, customers are opening up to other scent categories. While fresh and Hesperidian scents are timeless, chypre, woody, and oriental scents are always more successful. The public expects more complex perfumes. According to Research Report “Russia Perfume Market Research Report, 2027” published by Actual Market Research, the market is expected to add 0.65 Billion by 2027. The Russia perfume market is gaining momentum due to rising personal care trends and growing demand for exotic scents for young people. Moreover, product diversification by manufacturers is attracting more consumer segments. Apart from that, rising consumer spending on luxury fragrances due to rising income levels and rising living standards continues to boost perfume sales. Other major factors propelling the demand for perfumes worldwide are rapid urbanization, increasing population and aggressive advertising by the manufacturers. However, the availability of counterfeit goods is one of the biggest challenges for the market. There are 143.4 Million people living in Russia, including 66.50 Million men and 76.90 Million women. An estimated 49.80 Million people, or the majority of the population, are between the ages of 18 and 44. 107.55 Million People live in urban regions, compared to 35.85 Million people who live in rural areas. According to the World Bank, Russia is expected to have a GDP of $1.78 trillion USD, an inflation rate of 6.7%, and a per capita income of $12,172.8. Declining consumer purchasing power due to declining disposable income has forced retailers and manufacturers into an all-out price war, regularly offering discounts of up to 30–50%. This approach has turned the consumer into a bargain hunter. All of this has impacted sales in many market categories. Because of their low disposable income, most Russian consumers are likely to remain price sensitive in the coming years. As a result, they continue to seek value for money and prefer cosmetics and personal care products offered at discounted prices. In light of this, market players will have to push forward with special promotions and discounts to remain competitive. According to the Director of label Super Cosmetics, which distributes labels such as État Libre d'Orange, Olfactive Studio, and Histoires de Parfum, in particular via the Cosmotheca retail network, niche businesses have to form alliances to compete with huge chain competitors. Similarly, the La Niche project gathers a selection of brands, such as Miller Harris, Micaleff, Urban Scents, The Harmonist, Profumi Del Forte, Neemah, Comptoir Sud Pacifique, Mauboussin, and, small Russian perfume houses, each year at the InterCHARM show to offer them better visibility among distributors. Based on Product type, Eau De Parfum is one of the leading segments in the market as it has highest level of fragrance concentrations and includes a huge percentage of essential oils as compared to other types. Parfum is expected to be fastest growing during forecast period owing to its higher concentration and longevity of fragrance scent. Based on End User, Women segment leads the market as women populations are inclined towards sustainable fragrances for their personal grooming purposes. Men segment is expected to grow at faster rate during forecast period due to increasing personal hygiene & grooming awareness among men. Men fragrances are stronger and more aromatic in nature, which, in turn, may increase the product’s adoption. On the basis of Product, Premium segment is leading the market due to personalization, product differentiation and quality and increasing demand for handcrafted and exclusive products. Mass products segment is expected to grow at faster rate during forecast period due to increasing production which results to increasing demand. Based on Nature Type, Synthetic Perfume leads the market due to increased production and consumption among people. Natural Perfume is expected to grow at significant rate during forecast period due to increasing awareness about use of organic products to avoid skin related problems or allergies. Based on Distribution Channel, Offline segment leads the market which includes hypermarket/ Supermarkets, Convenience Stores, Specialty Stores, etc. L'Etoile is the leading retail chain; in second place is the drugstore chain Magnit; and the third largest is the retail chain Rives Gouch. In recent years, drugstore chains have become important players in the beauty retail market: Ulybka Radughi, Podruzhka, Ruble Boom, and Sangui Style. In 13 years, L'Etoile opened 8 specialized outlets in Vladivostok, 4 in Ussuriysk, and 2 in Nakhodka. Another national network, Ile de Beauté, started with a small shop 12 years ago, and now they operate six stores in Vladivostok and Khabarovsk. The Online segment is projected to expand at a remarkable CAGR over the forecast period, which can be attributed to increasing internet penetration rates across Russia. E-commerce platforms offer a wide range of products to their consumers at attractive discounts, and they provide multiple payment options such as net banking, debit cards, and credit cards, which are some of the important factors augmenting the segment's growth. Covid-19 Impact: The COVID-19 crisis has accelerated the transformation of the sector, especially regarding distribution, a key link in the perfume value chain. Leading perfumers have had to compensate for brick-and-mortar store closures by expanding digital sales channels, especially specialized e-commerce sites. Faced with this trend, brick-and-mortar retailers must innovate and communicate to keep customers engaged in their stores. The ones most likely to buck this trend are large, powerful networks that are either bringing independent brands into the group or risking their disappearance. Online retailers are recognizing growing interest as home consumers seek alternatives to retail. Some cosmetics brands, inventories, and mail-order retailers have reported doubling their e-commerce sales compared to pre-COVID-19. Considered in this report • Geography: Russia • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Russia Perfume market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Eau De Parfum • Eau De Toilette • Eau De Cologne • Eau Fraiche • Parfum • Others By End User • Men • Women • Others By Ingredient Type • Natural • Synthetic By Product • Premium • Mass By Distribution Channel • Online • Offline The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Perfume industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.