Russian Cosmetics Stores Decline for Third Consecutive Year Amid Market Transformation

Continued Decline in Physical Cosmetics Stores

The number of cosmetics shops in the Russian Federation has reportedly fallen for the third consecutive year, with significant closures observed in the first ten months of 2025. According to a report by the research firm Kontur, a total of 2,966 cosmetics stores ceased operations during this period. Concurrently, 2,422 new stores opened, resulting in a net reduction of physical outlets.

This trend follows similar patterns in previous years. In 2024, 3,513 cosmetics stores closed, while 3,118 new ones opened. In 2023, there were 3,400 closures and 3,719 openings. Regional data further illustrates this shift; in Moscow, 267 cosmetics businesses closed compared to 137 openings in 2025, and in St. Petersburg, 72 stores closed against 55 openings.

Driving Factors Behind the Closures

Several interconnected factors are contributing to the decline in traditional brick-and-mortar cosmetics stores. A primary driver is the significant shift in consumer behavior towards online shopping. The growth of e-commerce platforms and digital marketplaces has made it easier for consumers across Russia to access a wide range of products. Marketplaces accounted for 19.2% of all cosmetic purchases in 2024, marking a 3.3% increase compared to 2023, and online sales continue to gain market share while offline channels gradually lose ground.

Other contributing factors include growing market concentration and rising logistics costs. The departure of numerous Western brands following 2022, such as Estée Lauder, L'Oréal, Sephora, LVMH, and Shiseido, also reshaped the market. While some Western brands are still available through parallel imports, their prices have increased significantly, sometimes by over 40%, leading consumers to seek more affordable alternatives.

Market Adaptation and New Opportunities

The evolving market has created opportunities for new players. Local Russian brands and those from Asia, particularly South Korea and China, have strengthened their presence, filling the void left by Western companies. These brands often offer a combination of affordable prices and quality products that resonate with local tastes. Consumer preferences are also shifting towards 'clean beauty,' natural, organic, and high-performance products.

Despite the decline in physical store numbers, the overall Russian cosmetics market is projected to grow. Analysts estimate the market to reach $3.2 billion by 2025, with an annual growth rate of 2.69% (CAGR 2025-2028). This growth is largely fueled by the expansion of e-commerce and the increasing demand for diverse product offerings. However, the rise of counterfeit products on marketplaces, reaching up to 20% in some segments, poses a challenge to consumer trust.