International beauty and personal care brands likely to drive cosmetics and toiletries growth in Indonesia, says GlobalData

Rising dominance of various international beauty and personal care brands is likely to drive the cosmetics and toiletries industry in Indonesia to US$7.6bn in 2024, at a compounded annual growth rate (CAGR) of 8.1% over the forecast period 2019-2024, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Indonesia Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’, reveals that ‘skincare sector’ was the largest category with value sales of Rp24.1 trillion (US$1.69bn) in 2019. However, the male toiletries sector is projected to witness the fastest value sales at a CAGR of 9.1% over the forecast period, closely followed by skincare with a CAGR of 9.0%.

Anchal Bisht, Consumer Analyst at GlobalData, says: “With growing urbanization, Indonesian consumers are increasingly focusing on appearance and wellbeing, which is expected to drive the demand for personal care products in the country. The per capita expenditure of cosmetics and toiletries in Indonesia stood at US$20.2 in 2019, which was lower compared to both the regional and global levels in the same year.”

 

Unilever, Procter & Gamble and L`Oreal S.A. were the leading market players in Indonesia while Pond`s, Lifebuoy and Sunsilk were the top brands in 2019. Hypermarkets and supermarkets, and convenience stores were the key channels for purchasing cosmetics and toiletries products in Indonesia. Private label products accounted for a low penetration level of 0.5% by value in 2019.

Ms Bischt concludes: “As awareness about the adverse effects of chemicals used in cosmetic and toiletries among millennial consumers is on the rise, there is a growing penchant for organic cosmetics and personal care products. With demand for these products showing no signs of slowing down, these products are expected to lend significant traction to industry growth opportunities going forward.”

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