Beauty Industry Struggles: Business Liquidations Surge
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Insights by Echo AI
The beauty industry in Russia is facing a significant downturn. From January to July 2026, business liquidations in this sector increased by 52.5% to 12,300, while new registrations decreased by 16.1%. This is attributed to a rise in the tax burden, particularly the reduction of the VAT threshold, and the shift of masters to private practice or coworking spaces. Despite this, demand for beauty services has not vanished, with Russians spending 179.6 billion rubles on such services in January-June 2026, a 16% increase year-on-year.
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