Apparently, fragrance sales in Russia have recovered from the financial crisis that shook the beauty industry four years ago, when consumers postponed purchases or switched to cheaper and mass-market brands. Back then, the fragrance category was also said to be losing out slightly to skincare and make-up, which began to see higher growth rates.

However, reports BW Confidential, the beginning of 2010 saw a rapid increase in fragrance sales as consumers began to replenish their scents. Premium fragrances saw boom 15.3% in value in 2010 to $865.4 million, while the total perfume category reported an increase of 11.9% to $2.2 billion, according to Euromonitor. Final figures for 2011 are not yet available, but estimates from Discovery Research Group show a 7.5% increase in 2011. However, part of this growth corresponds to an increase in prices.

Analysts predict that growth will now be driven by Russians’ increasing interest in luxury goods and the number of men buying fragrance. Niche brands and exclusive products are also more in demand, which is resulting in a bigger offer in this segment and more new-format stores catering to smaller players, according to BW Confidential. 

There has been a strong development in independent stores offering high-end fragrances and personalized service. These so-called “concept stores” are not only opening in the main hubs of Moscow or St Petersburg, but in other major Russian cities, as well.

To read BW Confidential’s full report on the Russian fragrance market go to: