Slow growth for perfumery and cosmetics market

2009-11-16



During the economic crisis, sales of perfumery and cosmetic products in Russia have been growing, but at just half the rate recorded last year, according to Staraya Krepost data cited by Vedomosti. It is forecast that the value of the market will amount to $9.7bn in 2009, a 4.1% increase compared to 2008.
Sales of luxury perfumes and cosmetics fell most dramatically, with consumer demand falling by about 30% in comparison with the previous year. L’Oreal, one of the main operators in this market, saw like-for-like sales of its products in Russia fall by 0.4% in the first half of 2009.
Cosmetics products in the mass-market category are considered to have fared the best during the recession. Kalina, a producer of value cosmetics reported sales of RUB 6.8bn ($236m) in H1 2009 – a year-on-year increase of 24.3%. During the same period last year, the company reported a growth in sales of 16%.