Growing urbanisation has encouraged consumers to focus more on looks and wellbeing.
A rising dominance of various international beauty and personal care brands will most likely drive the cosmetics and toiletries industry in Indonesia to $7.6b in 2024, at a compounded annual growth rate (CAGR) of 8.1% from 2019, according to a report from GlobalData.
The skincare sector recorded the largest sales of $1.69b (Rp24.1t) in 2019 in the industry. The male toiletries sector is projected to witness the fastest value sales at a CAGR of 9.1%, closely followed by skincare with a CAGR of 9%.
The per capita spending of cosmetics and toiletries in Indonesia stood at $20.2 in 2019, lower compared to both the regional and global levels in the same year.
Growing urbanisation has driven consumers in the country to focus on appearance and wellbeing, boosting the demand for personal care products, commented GlobalData's consumer analyst Anchal Bisht.
Awareness on the adverse effect of chemicals used in cosmetics and toiletries, especially amongst Millenial consumers, is also driving preference towards organic 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," Bisht added.
Hypermarkets and supermarkets, and convenience stores were the key channels for buying cosmetics and toiletries products in Indonesia. Private label products accounted for a low penetration level of 0.5% by value in 2019.
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