15 Jul 2020
Posted in Consumer
Indonesian skincare sector is expected to reach US$2.5bn by 2024, says GlobalData
The Indonesian skincare sector is expected to grow from Rp24.1t trillion (US$1.69bn) in 2019 to Rp37.1 trillion (US$2.5bn) by 2024, recording a compounded annual growth rate (CAGR) of 9.0%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Skincare – Market Assessment and Forecasts to 2024’ reveals that ‘Facial care’ was the largest category with value sales of Rp19.8 trillion (US$1.39bn) in 2019. However, ‘body care’ category is forecast to witness the fastest value growth at a CAGR of 9.3% during 2019–2024. It is closely followed by depilatories and make-up remover categories with CAGR of 9.1% each.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Rising spending power, willingness to spend on products perceived better and rising e-commerce sales from the digital savvy young Indonesians have galvanized the growth in demand.”
‘Hypermarkets and supermarkets’ are the leading distribution channels in the Indonesian skincare sector in value terms and accounted the majority share of 35.4% in 2019. It is closely followed by convenience stores, which held share of 34.7%, in the same year.
The value share of Indonesia in the global skincare sector is expected to increase from 1.3% in 2019 to 1.5% by 2024 while the country’s share at regional level is expected to rise from 2.4% in 2019 to 2.6% by 2024.
Unilever, Procter & Gamble and Martha Tilaar Group are the leading major players in value terms in the Indonesian skincare sector. Ponds, owned by Unilever, is the most popular brand in the Indonesian skincare sector in 2019 followed by Sariayu, owned by Martha Tilaar Group.
Ms Bisht concludes: “Adoption of natural and organic ingredients in skincare products are forecast to emerge as key driving points for the growth of the sector in the next five years. Given the rise in attention for halal certifications in skincare products on account of strong adherence to religious principles will drive innovations and steer the sector’s growth.”