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The Indonesia cosmetic market size is thriving with great investment potential. Indonesia with its expanding population and high demand for beauty items will become among the leading cosmetic markets worldwide in the near future.
Success in the Indonesia cosmetic market significantly relies on powerful brand marketing. While Indonesians are becoming more image conscious and leaning towards natural products foreign brands still maintain a strong presence.
In a very competitive market effective brand marketing is necessary to break through. Indonesian women are increasingly focused on fashion and personal image.
Consumers in the country can basically purchase cosmetics or personal care items from various channels. That includes department stores and supermarkets. They can also buy them through direct marketing along with beauty salons. But with its growing influence social media promotion is now significantly taking a market share. This further helps to propel the cosmetics industry forward.
The Indonesia cosmetic market caters to multiple economic tiers. The higher end products from Europe and the United States are focusing on the middle to upper demographic. While those from Thailand and South Korea are appealing to the middle class.
Mustika Ratu and Wardah as a local brand along with global ones like Unilever hold a strong presence in the market. Smaller domestic brands are also seeing encouraging sales which suggest that they further have the possibility to succeed.
Halal cosmetics have also witnessed substantial growth worldwide with Indonesia being no exception. Government mandates for halal certification on all locally made products including cosmetics. That has been a major factor for the halal industry growth in the country especially within cosmetics. Wardah has earned its reputation as the leader and first mover in the halal cosmetics sector in Indonesia.
Halal cosmetics are basically products made in compliance with Islamic law. This therefore ensures they are free from prohibited ingredients under the religion like alcohol and lard.
The government has acknowledged the time businesses require to adapt to halal standards. They therefore have implemented a phased approach to halal certification according to product type. The demand for halal cosmetics in Indonesia has surged particularly among millennials and gen Z. Even non Muslim consumers have significantly growing interest to these products as they are considered as safer.
Base and other domestic cosmetics brands have successfully tapped into markets with smaller Muslim populations including Australia by exporting halal products. Halal cosmetic products generally rely on plant ingredients. This can subsequently meet the growing interest in organic products in countries with Muslim minority populations.
The Indonesia cosmetic market also faces numerous challenges that impede its growth and progress. Even with measures to regulate the market challenges including illegal products and reliance on import continue to hinder market growth. Even though various measures have been implemented to curb illegal cosmetics in the country BPOM still identifies these products in the Indonesian market.
Around ninety percent among the raw ingredients for cosmetics in Indonesia come from abroad. This further complicates efforts to confirm the halal certification among these products. The latest local content guidelines create further complications in verifying raw materials. This presents additional obstacles to the cosmetics sector development.
A major hurdle also lies in recruiting skillful individuals for middle or top management roles. Companies basically need to invest in attracting talent while training and retaining talent within their workforce. With more opportunities emerging for locally connected and adaptable talent having a solid human resources development plan is vital for ensuring continued industry growth.