INDONESIA COSMETIC MARKET

Indonesia Cosmetic Market is expected to witness a CAGR of approximately 5.7% during the forecast period, 2024-2031, driven by a burgeoning middle class, growing digital influence, along with the rise of local brands and halal products.

Major Indonesia Cosmetic Market Drivers and Emerging Trends

The key factor propelling Indonesia cosmetics market growth is the expanding middle class currently estimated at about 54 million people. Forecasts indicate that this segment is expected to grow to an impressive 135 million by 2030 which positions businesses to capitalize on key trends catering to this expanding consumer market. This positions Indonesia as one of the biggest cosmetic markets globally. Additionally, the country’s swift economic expansion has boosted consumers’ purchasing power which leads to a growing demand for cosmetic items.

Over the past few years, there has also been a growing recognition of self-care as individuals focus more on their skincare routines and invest accordingly. This focus on wellness and inner beauty has greatly increased the need for skincare items.

Additionally, social media has evolved into a key resource for beauty tutorials and inspiration which allows broader access to information regarding skincare benefits and product reviews. The development has enabled consumers to make educated decisions that are suited to their specific skin requirements and issues. E-commerce platforms like Tokopedia and Shopee also experience rapid growth during the pandemic which appeals to consumers who are working from home and are more mindful of prices. The trend is likely to persist and grow further driven by the convenience offered by motorcycle deliveries through the popular Gojek platform.

The other factor supporting Indonesia cosmetic market size expansion is the emergence of local brands. Domestic beauty brands are steadily rising in prominence and pose a challenge to the previously dominant Western and Korean products. These local brands have embraced the national culture, providing products that are culturally relevant and particularly designed to address the unique climate and dermatological requirements of Indonesian consumers.

Halal cosmetics are also gaining popularity as Muslim population is increasing, with local brand Wardah recognized as a pioneer in the country’s halal cosmetics sector. This sector is seeing rising popularity not only among millennials and gen Z but also within the non-Muslim individuals. International businesses can explore investments in halal cosmetic sector tailored for local consumers and for export opportunities. As the leading Muslim-majority country, Indonesia is the biggest halal market globally particularly in sectors such as food and cosmetics.

Indonesia’s cosmetics market report highlights that the government has taken steps to improve access to halal certification for local products particularly in the cosmetics sector. A significant reduction in the halal certification registration fee for local products has been cut to USD 3. Furthermore, it has sped up the process which allows cosmetic companies to complete halal registration in only fifteen days. This effort seeks to create more effective and affordable halal certification procedures which promote broader compliance in the cosmetics industry.

The cosmetic market in Indonesia can be divided into skincare along with makeup and other segments. The skincare segment is leading the cosmetic industry and serving as a daily ritual for many consumers. The segment features a diverse array of products which ranges from everyday moisturizers to sunscreens. Growing consumers’ focus on appearance has positively influenced the segment’s growth. Additionally, creams with skin-firming and anti-inflammatory properties are further driving the skincare market expansion.

The cosmetics industry in Indonesia can be segmented by the distribution channel into offline and online channel. The offline segment is dominant in the market as many consumers continue to favor purchasing products in physical stores to see and test items that fit their preferences. Nevertheless, the e-commerce platforms’ rapid growth is driving a significant increase in online distribution as it offers convenience and access to a larger consumer base.

The market is primarily dominated by local brands like Wardah and Mustika Ratu along with international giants like L’Oreal and Unilever. Meanwhile, emerging small local companies are also achieving notable sales which indicate that domestic products can also succeed.

Top Market Players

Various notable players operating in the market include Wardah, Mustika Ratu, L’Oreal, Unilever among others.

Segments covered in the Report:

The Indonesia Cosmetic Market has been segmented on the basis of product and distribution channel. Based on the product, the market is segmented into skin care, hair care, makeup, fragrance, others. Based on the distribution channel, the market is segmented into offline, online.</p

Market Segmentation

Indonesia Cosmetic Market by Product

• • Skin Care
  • Hair Care
  • Makeup
  • Fragrance
  • Others

Indonesia Cosmetic Market by Distribution Channel

• • Offline
  • Online

Indonesia Cosmetic Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Wardah
  • Mustika Ratu
  • L’Oreal
  • Unilever