Indonesia’s haircare market forecast to grow at 7.7% CAGR during 2019–2024, says GlobalData

The haircare market in Indonesia is forecast to grow from Rp17.3 trillion (US$1.2bn) in 2019 to Rp25 trillion (US$1.7bn) in 2024, recording a compound annual growth rate (CAGR) of 7.7%, says GlobalData, a leading data and analytics company.

GlobalData’s report,  ‘Indonesia Haircare – Market Assessment and Forecasts to 2024’, reveals that shampoo category led the sector with a value of Rp8.7 trillion (US$614m) in 2019. It was followed by conditioner and hair colorants categories. Furthermore, saloon haircare category is forecast to register the fastest value growth at a CAGR of 8.4% during 2019–2024 while the shampoo category is expected to gain maximum market share in value terms during the same period.

Susmitha Bynagari, Consumer Analyst at GlobalData, says: “Strong adherence to Islamic culture and practices, and growing inclination towards ethical consumption even in personal care products have paved way for the rise in the demand for halal-certified hair care products. Additionally, consumers are preferring products that address lifestyle related challenges such as dryness among frequently commuting men.”

‘Convenience stores’ was the leading distribution channel in the Indonesian haircare sector, with a value share of 44% in 2019, followed by hypermarkets & supermarkets and parapharmacies/drugstores channels with 34.8% and 6.4% respectively.

Unilever, Procter & Gamble and L’Oreal SA were the top three companies in the Indonesian haircare sector accounting for a combined value share of 68.5% in 2019.

Shampoo is the most consolidated category, with the top three market players accounting for a combined value share of 86.1% in the country.

Bynagari concludes: “Due to strong religious beliefs, demand for ‘halal’ haircare products is on the rise and is becoming a mainstay. While this will remain pertinent and gain foothold, growing acknowledgment of harmful effects of chemicals used in products and rising awareness of benefits of natural ingredients will steer future demand and innovation.”

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