The Russian market for interior finishing materials is navigating a period of profound transformation. It is a sector defined by a paradox of progress: a dramatic achievement in import substitution coexisting with rising prices and a cooling demand. As the industry moves toward self-sufficiency, it is simultaneously forced to adapt to new economic realities, shifting consumer preferences, and the emergence of both domestic and Asian players.
Market Contraction: The Headwind
Despite a robust domestic production sector, the overall DIY market—which includes interior finishing materials—experienced a significant contraction in the second half of 2025. The market’s total turnover dropped by 3.5% year-on-year to 3.52 trillion rubles. This downturn was driven by a broader decline in housing construction, with total housing completions falling by 5% in the first eight months of 2025. This has directly reduced demand for finishing materials, particularly in the B2B segment, which saw a decline of 6.5% in the second half of 2025.
Analysts from INFOLine project a further 5% contraction in the B2B and B2C segments in the first half of 2026, as households postpone major renovation projects and focus on minimal, local repairs. A recovery in physical sales volumes is not expected before 2027, with any 2026 growth likely driven by inflation and currency effects rather than genuine demand recovery.
The Import Substitution Triumph
Against this backdrop of shrinking demand, the supply side of the market has undergone a radical shift. By the end of 2025, the Ministry of Industry and Trade officially estimated that the import share in the building materials industry—which includes interior materials—had fallen to less than 4%. This includes not only traditional basic materials but also much of the previously import-dependent product range. The domestic manufacturing sector has reached near-total self-sufficiency in mass-market categories such as dry construction mixes, paints, varnishes, boards, and insulation materials.
This result has been driven by long-term investment in new capacity, modernization of existing plants, state support measures (subsidized financing, special investment contracts), and the transfer of assets from exiting foreign companies. The average growth in production of these materials was 45-50% in 2025.
The Remaining Import Niche and Price Dynamics
Despite this success, the industry acknowledges that import dependency persists in high-tech engineering systems and premium finishing materials. For some specialized niches, imported products still account for 60-100% of the market. This remaining 4% is composed of unique luxury materials such as semi-precious stones for high-end interiors, specialized construction equipment, and premium finishes.
Furthermore, domestic production has not led to cheaper materials. The price index for construction materials rose by 7.9% in early 2025. Costs are driven by domestic factors: logistics, energy prices, and the high tax and interest burden. While some imported materials have become cheaper in ruble terms due to currency appreciation, overall finishing costs still rose by 10-15% in 2025. The average price of finishing materials increased by approximately 9% in 2025.
Trends and Consumer Preferences
The market is not simply a story of volumes and prices; it is also a story of changing consumer behavior. There is a clear trend toward “warm minimalism” and the use of natural materials. Wood decors, natural shades, and textured surfaces are increasingly in demand.
Specific product categories have seen dramatic shifts in popularity. Sales of decorative paints with matte and wet-silk effects surged by 225% and 81%, respectively, while pearl-effect paints saw a 25% decline. In wall coverings, demand for textured wallpapers grew by 16.3%, and children’s wallpapers by 29.5%, while vinyl wallpapers on a non-woven backing fell by 16%. Online delivery has also emerged as a defining trend in the sector, reshaping how customers purchase materials.
The Russian interior materials market is emerging from a period of crisis-driven import substitution into a new phase of market consolidation and adaptation. The industry has achieved near-total self-sufficiency in mass-market finishing materials, successfully replacing a vast range of previously imported products. However, this new capacity has not stabilized prices, and the market remains under pressure from high interest rates, rising operational costs, and cooling demand.
For domestic manufacturers, the challenge is no longer just replacing imports, but competing on quality, design, and innovation in a market where consumers are showing a clear preference for natural aesthetics. For the market as a whole, the path to recovery will depend on the return of demand in the construction sector and the industry’s ability to bridge the remaining gap in high-tech and premium product segments.
