The market landscape
Trends in the beauty industry in Indonesia included the increasing popularity of South Korean beauty products, or K-beauty, in the market. In 2020, Indonesia ranked second among the countries with the highest K-beauty popularity. Besides, around 38.5 million U.S. dollars’ worth of beauty and skincare preparation imports in Indonesia was from South Korea, accounting for the second largest import value in that segment that year. Indonesian consumers are relatively particular when it comes to certain beauty standards and considered K-beauty products to be the right fit for their needs. ‘Glass-skin’ and no-makeup makeup looks were among the makeup looks preferred by Indonesian consumers nowadays. Looking at the market performance of the leading brands in the country, however, the popularity of K-beauty was still below that of the Indonesian cosmetics brand, Wardah. The pioneer of halal cosmetics and skincare products in the country recorded the highest sales among other leading cosmetic brands in Indonesian online stores, with 7.37 million items sold as of January 2020.On average, the per capita consumer spending on cosmetics and toiletries in Indonesia amounted to 20.2 U.S. dollars. The value was predicted to increase by seven U.S. dollars by 2024, indicating sustained growth of the market. As for the distribution, offline stores were still the main sales channels for beauty and personal care products. However, the online sales channels have been seeing a steady revenue increase since 2017.
