A rapidly growing cosmetics market

  • A young Indonesian woman
  • Kiehl's customer consultation
  • Traditional Indonesian wedding make-up called
  • Deep-rooted beauty

There are some 700 cosmetics companies in Indonesia across its 19 provinces. In 2007, total production reached 372 tons of cosmetic products with average production growth of 12.5% between 2003 and 2007. In 2011 the beauty market totaled 1.6 billion euros, nearly one-third of which from the sale of hair care products.

The Food and Drug Monitoring Agency (BPOM), specially created to monitor and regulate the cosmetics market, affirms in its last report that the number of cosmetic products on the Indonesian market grew from 12,000 in 2010 to nearly 30,000 in 2011. Strict regulations are in effect to protect the market. Cosmetics sold in Indonesia must meet safety requirements, feature labeling in the official language, and answer quality standards.

Market development and cosmetic sales volume growth are set to continue in part due to the increasing numbers of working adults. Not only are they armed with increased purchasing power, they are also more aspirational in their needs and desires concerning their appearance. Men, for example, are more and more concerned by grooming and are expressing new needs, which develop the demand for men’s cosmetics, including anti-aging and whitening products.

There are currently over 1.5 million urban points of sale for beauty products in Indonesia, including supermarkets and hyper-markets, traditional shops, shopping malls and department stores. Growth potential is further enhanced by the increased demand for services like beauty salons and spas. These types of establishments are multiplying with new upscale beauty parlors and skin care clinics.

Overall source: Food and Drug Monitoring Agency (BPOM) official report – 2011