The Russian professional hair care market is set to grow at a CAGR of 4.1 per cent to reach $464.2 million by 2020, according to a new report by IndustryARC.
Products within the market are sold over the counter and through retail channels such as specialty beauty stores, pharmacies and online, with the market being segmented into services offered in salons such as coloring, shampoo and conditioners, perming and straightening and styling.
L’Oreal leads the top five companies within the sector, followed by Unicosmetic, Procter and Gamble, Henkel, Keune Haircosmetic respectively. Meanwhile the hair colouring sector is posting the biggest growth with more than half the market share, and is the most preferred sector in salons. Social media is aiding the growth of chemical free hair colour such as vegetable colours while shampoos and conditioners with fewer chemicals are in high demand.
It is a highly oligopolistic with the top four companies accounting for around 70 per cent of the market. Male grooming has also posted growth, with growing consumer awareness of self image making Russian men more eager to incorporate grooming into their daily routine.
Celebrity endorsements are also a key growth driver within the market.
However, it isn’t all good news. According to the report, due to unfavorable macro-economic conditions and rising inflation, household purchasing power is impacted. This in turn is holding back spending on discretionary services such as personal grooming services.