Indonesia’s move to introduce non-halal labeling for cosmetics will help consumers make informed purchase decisions, says GlobalData

In a country where a majority of consumers prefer halal-certified food, drinks, and cosmetics, the government’s call for cosmetics brands carrying non-halal ingredients to have appropriate labeling will make it easier for Indonesians to buy products according to their preference, says GlobalData, a leading data and analytics company.

Meenakshi Haran, Consumer Lead Analyst at GlobalData, comments: “Indonesian consumers value highly targeted products that comply with their specific requirements, as alluded to by 44% of respondents who claim its essential for products to be tailored to their culture when making purchase decisions*. The reason for this appeal of personalized offerings is often due to the perception that international brands do not cater to specific consumer requirements. GlobalData’s survey also shows that over a third (38%) of Indonesian consumers strongly/somewhat agree that they find it hard to find products for their ethnic group#.”

Indonesia is the most populous Muslim nation, with 87% of the population following this religion^. As such, there is a strong demand for halal products. The Ministry of Religious Affairs formed a Halal Product Assurance Organizing Body (HPA) to cater to consumer inclination for this specific product attribute. However, approximately 81% of cosmetics registered in the country do not have halal certification, according to HPA and Indonesia’s Food and Drug Authority (BPOM), making the non-halal labeling essential to comply with consumer requirements.

Tim Hill, Key Account Director, SE Asia, GlobalData, adds: “Consumers are not shy to avoid brands that do not align with their needs amid the growing cancellation culture. As many as 54% of Indonesian respondents strongly/somewhat agreed that they will boycott a brand that fails to comply with their personal beliefs**.

Haran continues: “Consumers tend to trust brands that support personalized products and address the perceived ambiguity with regards to on-pack communication with professional certifications. This is evident in a recent GlobalData survey, where 76% of Indonesians claim they are very/quite likely to buy products based on professional certifications*.”

Hill concludes: “Indonesia’s cosmetics & toiletries industry is set to expand at a CAGR of 6-8% in the coming years, with skincare being the largest sector, indicating the need for brands to have targeted offerings. The country’s regulatory body aims to assure consumers of the distinction between halal-certified and non-halal cosmetics so they can choose the products that align the most with their needs.”

#GlobalData 2022 Q3 Consumer Survey – Indonesia, published in August 2022, 500, respondents

*GlobalData 2023 Q4 Consumer Survey – Indonesia, published in December 2023, 500 respondents

^Pew Research Center, 2024

**GlobalData 2023 Q2 Consumer Survey – Indonesia, published in August 2023, 500, respondents

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