War, Taxes, and Rent Are Pushing the russian Beauty Business into the Shadow

December 2025 was the worst pre-holiday month for the rf’s beauty industry in at least a decade – a sharp break for a market where the end of the year traditionally provided peak revenues. Demand for the services of “female beauty” professionals in russia decreased by 25-30 % in the final month of the year.

Consumers are cutting back on non-essential spending amid rising living costs, while beauty salons are forced to raise prices due to increased fiscal pressure. russian women are switching to economy mode, starting with their personal care expenses.

The decline in demand is due to the combined impact of several factors: increased tax burden, the war against Ukraine, international sanctions, high rents, and the general rise in the cost of the basic consumer basket. In response to rising costs, some beauty professionals are giving up their rented premises and switching to providing services at home. This allows them to keep prices at the usual level, but such “home beauty salons” mostly operate outside the tax system, which leads to a gradual outflow of the economy- and middle segments of the industry into the shadow.

The beauty market is just one example of the pressure exerted by the kremlin’s war economy on non-food industries which previously improved the quality of life. By the end of the year, every third  russian  has cut back on entertainment and travel expenses. Most of the population have stopped going to cafes and restaurants, with 28 % even cutting back on street food. One in five began to save on communication services.

russians are being pushed into austerity not only by rising costs, but also by deepening uncertainty about the future.