Russian market of cosmetics and packaging

Russian market of cosmetics and packaging

Russian market of cosmetics and packagingPlastic packaging consumption in Russia goes down, and what you should know about Russian market of cosmetics and packaging in 2019.

Since 2015 the consumption of plastic packaging for cosmetics and householding chemistry decreased by 7,5% – mostly due to a decline in common cosmetic production. Good news is that the drop in demand mainly affected plastic packaging made in Russia. As for imported packaging, which oscillates around 42% of total consumption, we could still observe a moderate quantitative  growth of approximately 7%. It will, however, still take a lot of innovation and flexibility as for design and pricing policies for Western packaging manufacturers in order to at least hold the status quo in the next few years.

The meaning of packaging, being a valuable marketing communication channel for cosmetic and fragrance brands, is hard to be overrated. Naturally, this leads to constantly growing requirements as for its quality and appearance. Continuous improvement in design, the ability to present, differentiate, protect the content and brand identity, hinder forgery a reduce environment impact – this is the specifications Russian cosmetic business demand from packaging from abroad. According to the common opinion declared during the “Polymer packaging in cosmetic and fragrance industries 2018” gathering, otherwise none of them is ready to pay the almost twice as high a price for German, Polish, Italian or other European packaging, compared to much cheaper and relatively still attractive packaging imported from Belarus (which has been dominating the import for years, delivering around 50% of total imported cosmetic packaging).

Last year, Russia’s domestic cosmetic market produced approximately 2,4 billion units of cosmetics. The largest shares here belong to hair care products (26%), oral care (14%) and deodorants (12%). The remaining 48% is divided between face and body care and the rest of cosmetics. So, even despite common decline in cosmetic production by 2017 ( 12% less shampoo, 49% – face care, 17% – hair care) compared to 2015 and it’s minor of just 3,4% (the lowest since 2010), the cosmetic market of Russia still remains a huge and attractive piece of pie for abroad manufacturers of stand out, top quality packaging. Despite the ever-extreme economic conditions Russian consumers and producers have to deal with, the desire for captivating design never goes down. Luckily for European and Chinese manufacturers, production capacities and décor technologies of domestic suppliers are still far from being able to satisfy all the needs and desires of their clients.

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