The make-up sector in Indonesia is forecast to grow from IDR6.84 trillion (US$482.9m) in 2019 to IDR9.38 trillion (US$634m) in 2024, recording a compound annual growth rate (CAGR) of 6.5%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Make-Up – Market Assessment and Forecasts to 2024’, reveals that the lip make-up was the largest category with value sales of IDR2.78bn (US$196.4m) in 2019. However, the eye make-up category is forecast to register the highest value growth at CAGR of 6.63% during 2019-2024, and is closely followed by face make-up category.
Anchal Bisht, Consumer Analyst at GlobalData, says: “What was considered a luxury once, make-up products have now become a routine and part of lifestyle for Indonesian women. Steady economic growth and increasing disposable incomes, alongside rising penchant for looking beautiful, added fillip to this transition and thereby fueled growth in the sector. Consumers’ desire to stick to religious norms and government mandates have pushed product innovation in the direction of obtaining halal certifications and using natural ingredients – a move that led to introduction of new products.”
Among the distribution channels, health & beauty stores dominated the sector with a value share of 27.8% in 2019, followed by direct sellers and hypermarkets & supermarkets at value shares of 20.7% and 19.1%, respectively.
L’Oréal S.A., Oriflame Cosmetics S.A., and Mandom Corporation are the top three companies in the Indonesian make-up sector; while Maybelline, Oriflame, and Pixy are the top brands in value terms in 2019.
Ms Bischt concludes: “Consumers in Indonesia prefer purchasing make-up products such as lipstick and face powders that are not only customized to their skin type, but also help sustain their culture and identity, which is driving the sales of halal certified make-up products. Manufacturers are working towards bringing more products with natural ingredients which is poised to translate into higher adoption of these products in the near future.”