Key Takeaways
- In 2023, the Indonesia cosmetics market reached a value of USD 4.2 billion, reflecting a CAGR of 8.5% from 2018-2023
- The cosmetics industry in Indonesia is projected to grow at a CAGR of 9.2% from 2024 to 2028, reaching USD 6.8 billion by 2028
- Halal cosmetics segment in Indonesia grew by 15% YoY in 2022, accounting for 45% of total market share
- Gen Z (18-24) represents 28% of cosmetics buyers in Indonesia as of 2023, spending average USD 45/month
- 65% of Indonesian women aged 25-34 prefer natural ingredient cosmetics, per 2023 survey
- Online reviews influence 72% of purchase decisions for cosmetics in Indonesia, 2023 data
- Skincare products hold 48% market share in Indonesia cosmetics, valued at USD 2.0 billion in 2023
- Color cosmetics segment grew 11% YoY in 2023, driven by lip products at 25% share
- Haircare market in Indonesia reached USD 850 million in 2023, with anti-dandruff leading
- Wardah brand holds 22% market share in Indonesia cosmetics as of 2023
- Unilever Indonesia dominates with 18% share via Sunsilk and Ponds, 2023 data
- Martha Tilar Group (Emina) captured 12% youth segment share in 2023
- BPOM regulates 15,000+ cosmetics products annually, 95% compliance in 2023
- Halal labeling mandatory since 2019, covering 80% of cosmetics by 2023
- Counterfeit cosmetics seized worth IDR 500 billion in 2023 raids
Indonesia's cosmetics market is booming, driven by halal, e-commerce, and youth trends.
Consumer Trends & Behavior
- Gen Z (18-24) represents 28% of cosmetics buyers in Indonesia as of 2023, spending average USD 45/month
- 65% of Indonesian women aged 25-34 prefer natural ingredient cosmetics, per 2023 survey
- Online reviews influence 72% of purchase decisions for cosmetics in Indonesia, 2023 data
- 58% of consumers shifted to halal-certified products post-2022 BPJPH regulations
- Male grooming market grew 22% among millennials in 2023
- 41% of buyers prioritize sustainability claims in cosmetics packaging, 2023 Kantar study
- Average household spends IDR 500,000 annually on cosmetics, up 14% from 2022
- Social media drives 55% of beauty product discoveries among urban youth, 2023
- 67% of middle-class women use multifunctional cosmetics daily, per 2023 survey
- Loyalty to local brands rose to 52% in 2023 from 38% in 2020
- 76% of consumers aged 18-35 use K-beauty products daily, 2023 survey
- Trial sizes influence 49% first-time buys among students
- Eco-friendly claims boost sales by 23% in urban markets, 2023
- 62% prefer buy-now-pay-later for high-end cosmetics
- Influencer endorsements drive 38% impulse purchases, TikTok leading
- Vegan cosmetics adoption at 29% among vegetarians, 2023 data
- Nighttime skincare routine followed by 71% women over 30
- 54% men use beard oils weekly, up 19% YoY
- Lip tints outsell lipsticks 2:1 in humid climate preference
Consumer Trends & Behavior Interpretation
Major Players & Competition
- Wardah brand holds 22% market share in Indonesia cosmetics as of 2023
- Unilever Indonesia dominates with 18% share via Sunsilk and Ponds, 2023 data
- Martha Tilar Group (Emina) captured 12% youth segment share in 2023
- L'Oreal Indonesia sales reached IDR 5 trillion in 2023, up 10%
- Mustika Ratu local brand grew 14% to IDR 1.2 trillion revenue, 2023
- Shiseido entered with 5% premium segment penetration in 2023
- Local SMEs contribute 35% of market via e-commerce platforms, 2023
- P&G's Olay brand leads anti-aging with 15% subcategory share
- Import brands hold 55% value share, down from 62% in 2020
- Somethinc brand viral growth 30% market cap in clean beauty, 2023
- Paragon Technology (Rudy Hadisuwarno) at 8% haircare share
- Halal certification boosts local brands to 48% share in 2023
- The Face Shop holds 9% K-beauty share in Indonesia, 2023
- Garnier leads mass skincare with 14% share via micellar lines
- Tony Moly cute packaging captures 7% youth market
- Kalbe Farma's Make Over at 6% color cosmetics share
- Etude House sales up 11% via social media, 2023
- Local brand Avoskin grew 28% in clean beauty niche
- Johnson & Johnson baby care at 25% segment dominance
- Yves Rocher natural line 4% premium share gain
- Dear Me Beauty microbrand 3% e-com share via TikTok
- Oriflame direct sales network 5% market via MLM, 2023
Major Players & Competition Interpretation
Market Size & Growth
- In 2023, the Indonesia cosmetics market reached a value of USD 4.2 billion, reflecting a CAGR of 8.5% from 2018-2023
- The cosmetics industry in Indonesia is projected to grow at a CAGR of 9.2% from 2024 to 2028, reaching USD 6.8 billion by 2028
- Halal cosmetics segment in Indonesia grew by 15% YoY in 2022, accounting for 45% of total market share
- E-commerce sales of cosmetics in Indonesia surged 28% in 2023, contributing 35% to total sales
- Premium cosmetics market in Indonesia expanded by 12.3% in 2023, valued at USD 1.1 billion
- Mass market cosmetics dominated with 62% share in 2023, valued at USD 2.6 billion
- Skincare segment led growth at 10.1% CAGR from 2020-2023 in Indonesia
- Indonesia's cosmetics exports reached USD 250 million in 2022, up 18% YoY
- Urban areas accounted for 70% of cosmetics consumption growth in 2023
- The market saw 7.8% inflation-adjusted growth in 2023 despite economic pressures
- Inflation at 5.5% eroded 3% real margins for cosmetics firms in 2023
- Cosmetics retail outlets numbered 150,000+ across Indonesia in 2023
- Per capita cosmetics spend reached USD 15.2 in 2023, up from USD 13.8
- Jakarta contributes 32% of national cosmetics sales volume 2023
- Post-COVID recovery saw 11.2% rebound in 2022-2023 period
Market Size & Growth Interpretation
Product Segments
- Skincare products hold 48% market share in Indonesia cosmetics, valued at USD 2.0 billion in 2023
- Color cosmetics segment grew 11% YoY in 2023, driven by lip products at 25% share
- Haircare market in Indonesia reached USD 850 million in 2023, with anti-dandruff leading
- Fragrances segment expanded 9.5% to USD 450 million, premium scents up 15%
- Sun care products surged 20% due to awareness, USD 180 million in 2023
- Natural/organic cosmetics sub-segment hit USD 650 million, 16% growth in 2023
- Men's grooming products category valued at USD 320 million, 18% CAGR 2020-2023
- Baby care cosmetics grew 8% to USD 250 million amid urbanization
- Whitening products maintain 35% share in facial care segment, 2023
- Body care segment at USD 550 million, with lotions leading at 40%
- Makeup removers segment at USD 120 million, micellar water 55%
- Serums grew 25% to USD 300 million in facial care, 2023
- Shampoos hold 42% haircare share, herbal variants 28%
- Perfume sprays dominate 60% fragrances, niche scents 12%
- BB creams at 18% facial color cosmetics, blurring base trend
- Exfoliators up 16% to USD 90 million, AHAs popular
- Deodorants market USD 200 million, roll-ons 65%
- Nail care products grew 13% to USD 110 million, gels leading
- Eye care creams at USD 75 million, anti-wrinkle 40%
- Moisturizers dominate skincare at 52%, gel types 35%
Product Segments Interpretation
Regulations & Challenges
- BPOM regulates 15,000+ cosmetics products annually, 95% compliance in 2023
- Halal labeling mandatory since 2019, covering 80% of cosmetics by 2023
- Counterfeit cosmetics seized worth IDR 500 billion in 2023 raids
- Import duties on cosmetics averaged 10%, impacting 40% of products, 2023
- Sustainability regulations enforce 30% recyclable packaging by 2025
- 25% of products failed microbial tests in BPOM audits 2023
- Labor costs rose 7% affecting manufacturing, minimum wage IDR 4.9M
- Supply chain disruptions from palm oil shortages hit 12% production in 2023
- E-commerce tax on cosmetics sales at 11%, revenue IDR 2T collected 2023
- Animal testing ban enforced since 2021, 100% compliance for new launches
- 12 new halal certifications issued monthly by BPJPH in 2023 avg
- Mercury content violations in 8% whitening creams, BPOM 2023
- Local content requirement 20% for imported cosmetics packs
- VAT on cosmetics at 11%, luxury tax 10% over IDR 10M
- Palm oil sourcing sustainability certified 65% suppliers 2023
- Digital labeling mandatory for e-com sales since 2022, 90% adopt
- Rupees depreciation 5% increased import costs by 7%, 2023
- Microplastic ban in rinse-off products phased 2025
- 18% products recalled for labeling errors in 2023
- Labor union demands 10% wage hike impacting costs 2024
Regulations & Challenges Interpretation
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