RSHB experts predicted an increase in the production of organic cosmetics | 04/24/2024

The Center for Macroeconomic Analysis and Regional Forecasting of Rosselkhozbank analyzed the potential of the organic cosmetics industry in Russia: experts predict a multiple increase in demand and production in this segment. The drivers of market development will be a steady increase in the consumption of organic cosmetics and the consolidation of production standards natural cosmetics, as well as government support for the perfume and cosmetics industry.

According to RSHB experts, the production volume of organic cosmetics in Russia is about 2.5 billion rubles. At the same time, the area is actively developing: within three years, the market share of certified organic and ecological cosmetics in Russia may double. At the moment, 90% of such products are presented in the skincare cosmetics segment.

— The cosmetics industry, like the fashion business, is turning towards a green economy: cosmetics manufacturers are increasingly paying attention to reducing negative impacts and environmental issues. In the future, these aspects will become increasingly important. Manufacturers will adhere to the standards of environmentally friendly, organic and natural compositions, and also use packaging made from recycled materials, predicts Natalya Khudyakova, managing director of the Center for Macroeconomic and Regional Analysis and Forecasting of the Russian Agricultural Market.

Demand is growing

Rosselkhozbank analysts studied changes in demand for organic cosmetics. The basis for the analysis was the digital platform Your Native. The study showed that in the first quarter of 2024, demand for cosmetics made from natural ingredients increased by 47% compared to the same period last year. Among the most popular categories, the demand for natural organic cosmetics for hair care has increased 4 times, for facial skin care – 3 times, for body care – 2 times.

Among the leading positions, 40% are creams, including scrubs and body oils. Every fourth order for serums, face creams, and lip balms, 20% on shampoos, conditioners and hair masks. Another 15% is allocated to soap, solid perfumes, bath salts, etc.

— The demand for organic cosmetics is showing pronounced positive dynamics. The popularization of a healthy lifestyle and the trend towards environmental friendliness encourage Russians to take the most responsible approach to the choice of cosmetics, not only from the point of view of caring for their own health, but also from the point of view of the safety of the technological process of creating a product for the environment, notes Natalya Khudyakova.

On the platform Your Native We offer a wide range of organic skin care cosmetics. The greatest demand is for organic cosmetics, the main active ingredient of which is snail mucin, which has restorative properties. Mucin contains all the most valuable components for skin health – vitamins A, B and E, allantoin, collagen, glycolic and hyaluronic acids.

Promising segments of the cosmetic market

In 2023, Russian manufacturers increased their presence in the perfume and cosmetics market. As a result of increased demand for domestic ingredients and raw materials in 2023, the volume of production of perfumes and cosmetics in value terms in 2023 exceeded RUB 150 billion. (+20% compared to 2022, a threefold increase compared to 2019).

The largest increases in production volumes of perfumes and cosmetics based on the results of 2023 by 2022 occurred in the following categories:

• lotions and other hair products (+63%);
• powders and cream powders (+44%);
• lotions for facial skin care (+44%);
• shampoos, hair sprays, hair curling or straightening products (+30%);
• skin protective products (including sunscreens and tanning products), not included in other groups (+25%);
• lip and eye makeup products (+20%);
• bath products (+19%);
• facial skin care products: lotions, creams, special products (+12%).

At the same time, in certain categories one can observe an increase in production volumes over the past 5 years several times:

• skin protective products (including sunscreens and tanning products), not included in other groups, 2.5 times;
• lotions for facial skin care by 2.6 times;
• cosmetic products for face makeup 2 times.

Your own – https://svoe-rodnoe.ru/?tab=ib