Indonesia, with a population of more than 260 million people and increasing public consumption and awareness of health and beauty, offers a promising market for cosmetic companies.


  • The cosmetics and personal care market is expected to grow by 7.2% (CAGR 2018-2021) per year, amounting to IDR 77.3 trillion (USD 5,502 million).
  • In 2018, the largest segment of the cosmetics market, namely “Skin Care”, had a market volume of IDR 28.4 trillion (USD 2.022 million).
  • In 2017, sales of cosmetics and toilet products in Indonesia amounted to IDR 19 trillion (USD 1.4 billion).
  • The income per person in 2018 was IDR 289,108 (USD 20.57), concerning total population figures.
  • Many global cosmetic manufacturers have entered the Indonesian market with success.
  • Indonesia has more than 33,000 cosmetic products registered with the Indonesian Food and Drug Administration.
  • By 2021, 7% of the total revenue of the cosmetics sector will come from online sales.

Increasing Demand for Beauty and Care Products

The Indonesian cosmetics sector performed quite satisfactorily during 2017, which was the contribution of an increasing number of middle and upper-class consumers, especially women. According to Nielsen and Euromonitor, the value of the Indonesian cosmetics industry was around IDR 36 trillion (USD 2.7 billion) in 2016, an increase of 12% from 2015. The products that contributed the most to this growth were hair care products (37%), skincare (32%), and make-up products (10%).

The Indonesian cosmetics industry remains strong and attractive to both domestic and foreign investors. The Indonesian cosmetics sector is growing steadily, this can be seen from the extraordinary sales growth of 11.99% in 2017, contributing to IDR 19 trillion (USD 1.4 billion). This figure is higher than the average growth rate of the cosmetics sector in the previous six years, which was 10%. Besides, exports of cosmetic products also showed strong growth with an average of 3.56% from 2013-2017.

As previously explained, in September 2017, BPOMRI reported that the total number of cosmetic products registered and officially sold in Indonesia was 33,823 products, an increase of 11.57% compared to the same period in 2016. The size of the Indonesian market for the cosmetics industry in 2017 has increased from IDR 36 trillion (USD 2.6 billion) in 2016 to IDR 46.4 trillion (USD 3.3 billion).

International Players See Potential in the Cosmetics Sector

In 2012, L’Oreal opened its largest factory in the world in Jababeka, West Java as the largest factory for a global cosmetics company on Java, the world’s most populous island. Other international competitors such as Unilever (the current market leader in Indonesia) are also investing in new production to meet the growing demands of new middle-class consumers.

In addition, the strong growth of the Indonesian cosmetics market is reflected in the corporate performance and sales of Unilever Indonesia. On the Indonesia Stock Exchange, Unilever is in the list of the top 10 companies controlling the largest market capitalization in Indonesia. Unilever Indonesia’s shares increased by 5.28% to IDR 50,800 (USD 3.61) per share in 2018.

Halal Cosmetics Undergo

A growing trend regarding the use of halal cosmetics in Indonesia has been seen in recent years. This is due to the increasing number of Muslim women who have higher incomes and therefore are becoming more aware of buying halal products. These middle-class Indonesian women feel that using halal cosmetics is part of their religious obligation. Studies show that currently, 58% of Indonesian women will choose halal cosmetics over other cosmetics. As a result, they pay more attention to the halal status of the cosmetics used than the price, design, packaging, or other attributes.

Effective from 2019, new halal regulations will be implemented in the food and beverage sector, medicines, traditional medicines, and cosmetics.

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