Halal make-up gains momentum in Indonesia, finds GlobalData

The make-up market in Indonesia is projected to grow at a compound annual growth rate (CAGR) of 5.7% from Rp6.6bn (US$0.4bn) in 2020 to Rp8.7bn (US$0.6bn) in 2025, driven by the Halal-certified make-up, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Indonesia Make-up – Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the eye make-up category, which is forecast to register the fastest value CAGR of 6.4% during 2020–2025. The category is followed by face make-up, which is projected to record a CAGR of 5.7% during the same period.

Sukanyashri Kabali, Consumer Analyst at GlobalData, says: “The concept of halal in the make-up market is gaining momentum in Indonesia among not only the Muslim consumers, but also among the non-Muslims, who are adopting halal make-up for their perceived purity of ingredients, such as make-up free from carmine, alcohol, human or animal discharges.

“In October 2019, Indonesia introduced mandatory halal law, which requires all products to be halal certified by the Ministry of Religious Affairs in Indonesia by 2026. While this poses additional challenges of compliance to companies, it will create more opportunities for the development of halal-certified products in the country.”

‘Health & beauty stores’ was the leading distribution channel in the Indonesian make-up market in 2020, followed by direct sellers and ‘hypermarkets & supermarkets’.

The value share of Indonesia in the global make-up sector is expected to remain unchanged at 0.9% by 2025. However, the country’s share at the regional level is expected to decrease from 2.6% in 2020 to 2.3% by 2025.

​L’Oréal S.A., Oriflame Cosmetics S.A. and Mandom Corporation were the top three companies in the Indonesian make-up market by value in 2020 while Maybelline and Oriflame were the leading brands.

Ms. Kabali concludes: “Growing middle-class, increasing social media influence and a young tech-savvy population present great opportunities for developing a beauty-tech market to multinational beauty companies such as L’Oréal Indonesia, which is collaborating with e-commerce companies to become more customer-centric and increase engagement with consumers.”

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