Russian Cosmetic Industry Booms

Thanks to Johnson’s Russia List #29, we now have a place to go for information on the cosmetics industry in Russia. Cosmetics in Russia purports to be the “first online newsletter on the Russian perfumery and cosmetics market in English.” Blessed thanks. According to the site, the growth in the cosmetics market parallels general economic growth. And with that comes more concern for body image as advertisements that promote “beauty” are plastered across the cityscapes. It appears that Russians have a particular interest in oral hygiene:

In Russia oral care products make a substantial contribution to beauty industry. Oral care together with perfumery and make-up products are among the most popular cosmetics. Sales of oral hygiene contribute to 14% of total cosmetics and perfumery sales in Russia. To compare: in global cosmetics and perfumery market the share of oral care segment is not very high. The segment makes the least share (only 9% of the total cosmetics and perfumery sales worldwide), as compared to skin care (27%), hair care (21%), colour cosmetics (15%) and perfumery (11%), according to Kline and company.

Despite the fact that there are quite a few niches to be developed, overall oral hygiene growth remained dynamic in 2006. Growth sales rate of oral hygiene is expected to achieve 12% in value terms. The segment is supposed to reach $1,065 mln as compared to $951 mln in 2005. Consumption is gradually shifting towards more expensive products. Insignificant decline in growth from 12.6% to 12% can be explained by segment maturity. In 2005 toothpaste, which accounted for an estimated 75% of sales value, dictated the development in oral care. The same tendency took place in 2006. Also newly formed power toothbrush sales added an additional boost last year.

I guess we can expect more Russians to have shiny teeth in the years to come., especially since “tooth whiteners [are] to remain the fastest growing product type in oral hygiene with annual growth about 10%.”! If only Listerine was making similar jumps in market share. . .