Indonesia’s Cosmetics Market

Indonesia’s cosmetics and personal care market is rapidly expanding, offering a wide array of products to meet diverse consumer needs. The personal care segment contributes the highest revenue, demonstrating the market’s strong growth potential. Increasing demand for both international and local beauty products has positioned Indonesia as a key destination for businesses in this sector.

The national cosmetics industry has become a booming sector with remarkable growth. In 2023, the market revenue reached USD 8.09 billion and is projected to grow to USD 9.17 billion in 2024. According to Deputy Minister of Industry Faisol Riza, the growing adoption of skincare products by men, alongside women, has been a significant factor driving this trend.

“Currently, the cosmetics or beauty industry must also adapt to advancements in modern technology. Additionally, it is essential for this industry to implement the concept of a green industry to support sustainable economic development,”

Deputy Minister of Industry, Faisol Riza

The number of cosmetics businesses in Indonesia has also surged, increasing from 1,039 in 2023 to over 1,200 in 2024. Additionally, the Indonesian Food and Drug Authority (BPOM) reported 88,178 product notifications in 2024, highlighting the continuous growth in product registrations.

Statista also mentioned that the prospects for Indonesia’s cosmetics market are very promising. The market is expected to continue showing positive revenue growth annually, averaging around 4.4% between 2025 and 2028.

Image by freepik

Rising Demand for Imported Cosmetics

The appeal of imported cosmetics in Indonesia stems from the nation’s affinity for global beauty standards, particularly South Korean beauty products (K-beauty). In 2022 alone, Indonesia imported beauty and skincare products worth approximately USD 40.14 million from South Korea, making it the second-largest source of imported cosmetics after China.

Trends such as simple, natural makeup looks and no-makeup aesthetics resonate deeply with Indonesian consumers, further bolstered by the widespread influence of social media. Platforms like Instagram and YouTube amplify the visibility of international beauty brands, driving demand among urban populations and beyond.

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E-Commerce: A Catalyst for Growth

Indonesia’s robust e-commerce landscape has significantly influenced the cosmetics market. According to data from Statista, offline stores remain the primary sales channel for beauty and personal care products. However, platforms such as Tokopedia, Shopee, and Lazada have made it easier for consumers across the archipelago to conveniently access a wide range of products. Online sales channels, which already account for a significant portion of the market, are projected to contribute over 26% of total beauty product revenue by 2027.

This digital transformation has also enabled international brands to penetrate the market more effectively, offering promotions and campaigns tailored to Indonesian consumer preferences.

Sources: kenresearch.com

Challenges

The cosmetics industry in Indonesia faces strict regulations enforced by the National Agency of Drug and Food Control (BPOM). To ensure consumer safety and product quality, businesses must obtain product notifications and distribution permits before entering the market.

Between 2021 and 2023, there was a significant surge in notification applications, highlighting the growing interest in the Indonesian cosmetics market. In 2023 alone, BPOM processed 106,457 applications, setting a new record. However, increased import tariffs on certain products present a major challenge for international brands, making it difficult for them to compete with well-established local players.

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Sources:

Pasar Kosmetik di RI Terus Tumbuh, Wamenperin Ungkap Potensinya ke Depan (idxchannel.com)

Tren Kecantikan Dorong Lonjakan Notifikasi Kosmetik Indonesia – GoodStats Data

Cosmetics and personal care market in Indonesia – statistics & facts | Statista