Market Intelligence
Cosmetics and Toiletries Indonesia

Indonesia's Beauty and Personal Care Market Growth

The beauty and personal care product market in Indonesia is a large and growing market that every U.S. exporter should consider.  Revenues are projected to reach $7.5 billion in 2021 and grow at a 6.5% compound annual growth rate through 2025, according to  In terms of market segments, personal care is the largest with $3.2 billion, followed by skin care ($2.1 billion), cosmetics ($1.7 billion) and fragrances ($0.4 billion). 

Imports accounted for $1.4 billion in 2019, with imports from the U.S. accounting for $103 million, according to the United Nations’ Comtrade Database. The top five U.S. exports to Indonesia are cosmetics ingredients, essential oils, shaving products, make up and skin care products, and soaps used for washing the skin, according to the U.S. Bureau of the Census. U.S. exports to Indonesia grew in 2020 despite the pandemic, led by increases in exports of shaving products (+$11 million) and essential oils (+$5.9 million) that compensated for a decrease in exports of make up and skin care products (-$6.3 million).  

Other major sources of imports include Singapore ($372 million), China ($288 million), the European Union ($253 million), Thailand ($88 million), India ($70 million) Korea ($51 million), Japan ($49 million), and Malaysia ($45 million).

Long-term trends that have been driving growth include greater financial independence for working women, greater interest in natural & organic products among the youth, and greater attention to grooming by men. Growth disposable income levels and the construction of new shopping malls and department stores has created opportunities for global brands to directly reach out to affluent customers. Approximately 15% of Indonesia’s 270 million people are considered to be mid to high-income earners who are willing to pay for well-known imported brands.

The pandemic in 2020 greatly accelerated the use of e-Commerce using websites including tokopedia, Shopee, and Bukalapak. E-Commerce suits consumers who have increasingly teleworked at home and become more price conscious. The trend is expected to continue due to the convenience of having things delivered by motorcycle using the popular GoJek delivery service. A rebound in sales of cosmetics is expected in the latter half of 2021 and early 2022 when more people will return to in-person workplaces. 

Local distributors interviewed by the Commercial Service in Indonesia say there are a number of products they are looking to add to their line up in the near future.  One distributor is looking for natural and organic shampoo, conditioner, body wash and shower gel, and body lotion for babies and small children. Another distributor is looking for new skin care products such as face wash, face serum, and facial masks. A third distributor is looking for face masks that use magnetic skin care that use mess-free spreading wands and nourishing ingredients.

Three types of legal entities can register cosmetics & personal care products in Indonesia with the National Agency of Drug & Food Control (BPOM). They are: 1) cosmetic manufacturers located in Indonesia; 2) cosmetic businesses with contracts with manufacturers (domestic or overseas); and licensed cosmetic importers. Product registration documentation should be based on the technical document in the ASEAN Cosmetic Directive, an agreement among Southeast Asian countries to harmonize the regulatory requirements. On average, it takes four 4 months to obtain a “BPOM Notification Number,” which is valid for three years.  It is important to register trademarks locally and companies may also register their trademarks with the Ministry of Finance Customs and Excise Bureau’s “Customs Recordal” system to block counterfeit imports.

With 85% of the Indonesian population practicing the Muslim religion, most consumers will check whether products are “halal,” meaning that they comply with Islamic law, or “haram,” meaning they contain pork or do not conform with Islamic law in some other way. Regulations enacted on October 17, 2019 state that halal certification and labeling will become mandatory for cosmetics starting on October 17, 2026.  Halal certification will be valid for a period of four years and can be processed by accredited certification bodies located in or outside of Indonesia. As of January 2020, the Ministry of Religion recognized 45 halal certification bodies located outside of Indonesia in 26 countries, including following five halal certification bodies in the United States.  

For more information contact: Pepsi Maryarini at