Grow and smell: perfume production in Russia increased 2.5 times
Russians have started to switch to domestic perfume. The growth of its production in the country for the year (July 2024 to July 2023) amounted to 28.4%. The production of perfume grew the most - 2.5 times. At the same time, the market share of domestic manufacturers is now estimated at 62% and continues to grow - it added 13% over the year. The share of imports is gradually decreasing. This is stated in the CRPT study, which was reviewed by "Izvestia". At the same time, despite the active import substitution, there is still an increase in prices. As explained by representatives of the industry, this is due to the rising cost of raw materials, which are mostly imported from abroad.
Why the production of domestic perfume is growing
Most of the supply in the perfume market today falls on Russian manufacturers. At the end of July, the share of domestic companies amounted to 62%, which is 13% more compared to the same period last year. The supply from abroad accounts for 38% - in July compared to the same period a year earlier, they decreased by 4%. This is stated in the study of the Center for Development of Advanced Technologies (CDPT, the operator of the state marking system "Honest Mark") on the marked market of this category of goods ("Izvestia" got acquainted with the document).
- Production of all perfumes in Russia increased by 28.4% over the year: if in January-July 2023, only 46.4 million bottles were produced, for the same period in 2024, the figure amounted to 59.5 million bottles. The greatest increase in production of perfume - 2.5 times, - explained "Izvestia" head of the consumer goods department of the CRPT Varvara Mikhailova.
According to the results of the study, the first place in the production of perfume is the Central Federal District. Here, according to July, 4.5 million pieces of products were produced, which is 57.8% of the total production. In second place is the Volga Federal District, where during the same time 2.09 million pieces of products were produced - 26% of total production in the country.
Spirits - 2.8 million pieces - were produced in Russia most of all during the same period. Their production growth in comparison with the same period last year amounted to 157%. According to July data, this product occupies 36.5% of the total perfume production in the country.
The second place is occupied by toilet water - 2.7 million pieces were produced, its share in the total production of perfume in the country amounted to 34.3%. At the same time, its output decreased by 16%. Perfume water closes the rating - 2.1 million pieces with a market share of 26.9%. Its production, on the contrary, increased by 20%.
According to the CRPT data, the least amount of perfume imported into Russia in July - 590 thousand pieces, and the most perfume water - 2.6 million pieces. The volume of imported toilet water amounted to 1.1 million pieces.
According to Varvara Mikhailova, due to the withdrawal of illegal products from the market, honest business occupies the vacated market shares and increases the output of its products, which is observed in perfume. The development of domestic perfumery stimulates sales growth, she added.
The labeling system has been launched in Russia since 2019 to combat illegal and low-quality products. Today it includes 24 categories of goods. According to the CRPT, in the category "perfume" illegal goods became 83% less, and the quality increased by 94%.
Thus, according to the CRPT, from January to July, the demand for various types of perfume was 10% higher than in the same period last year.
What perfume Russians buy most often
The marking system, however, was recorded and the growth of prices for perfume. Most of all for the year (July 2024 to July last year) rose in price perfume - by 55%. Perfume water increased in price by 21%, and toilet water - by 15%. Most often Russians bought perfume in the category "below average", the share of which in final sales is at 69%.
According to CRPT, the top 5 popular brands in perfume by sales from January 1 to July 31, 2024 in the category "toilet water" were Avon, Christine Lavoisier Parfums, Oriflame, Faberlic and Antonio Banderas. In the category "perfume" - Es, Zielinski & Rozen, Essens, Novaya Zarya and Armelle, "perfume water" - Avon, Faberlic, S Parfum, Oriflame and In100#gram.
"Izvestia" sent requests to the companies, as well as to the Association of manufacturers of perfumes, cosmetics, household chemicals and hygiene products with a request to comment on the reasons for the growth of the domestic perfume market, as well as the increase in prices.
As explained to "Izvestia" Russian perfumer Alina Pogudkina, among the reasons for the growth of the domestic perfume market can be called that many foreign brands because of sanctions left Russia. Also affected and the rise in prices for imported goods due to the rise in the exchange rate and the rise in the cost of logistics.
- People are not ready to spend a lot of money on imported perfume, which they liked, so they are reoriented to the domestic manufacturer, - she said.
According to her, business is also interested in selling more affordable brands for citizens, so there is an active process of import substitution. The expert believes that there is nothing surprising in the fact that Russians are returning to old brands, such as "Novaya Zarya", which traces its history back to 1860. Even though these are budget fragrances, they are quite good and better than some new little-known brands, the expert emphasized.
- Of course, we have felt the rise in prices. This is due to the fact that the cost of raw materials for production has risen, which today is 90% imported. Something is now starting to be imported from China, but previously it was purchased in Europe and America, - explained Alina Pogudkina.
Georgy Ostapkovich, Director of the Center for Conjunctural Research at the Institute for Statistical Research and Knowledge Economy of the National Research University Higher School of Economics, believes that the trend for import substitution in the international environment will only grow. At the same time, in his opinion, it is not necessary to set a goal to keep only Russian brands on the market - such a policy may affect quality, competition and prices, he summarized.
