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Indonesian skincare market to grow at 8.9 percent CAGR through 2026

The youth population and the post-pandemic economic recovery will drive the sales of skincare products in Indonesia, which will motivate multinational brands to launch premium and innovative products. Against this backdrop, the Indonesian skincare market is projected to grow at a compound annual growth rate (CAGR) of 8.9 percent from IDR 25 trillion (USD 1.7 billion) in 2021 to IDR 38.4 trillion (USD 2.5 billion) by 2026, says GlobalData, a data and analytics company.

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GlobalData’s report, ‘Indonesia Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026reveals that the market growth will be primarily driven by the body care category, which is set to register the fastest value CAGR of 9 percent over 2021–2026, trailed closely by the facial care category with a projected CAGR of 8.9 percent.

Anush Shaw, Consumer Analyst at GlobalData, says, “Competition is intensifying between domestic and multinational skincare brands in the Indonesian market, as consumers display an increased affinity towards brands that resonate with the local heritage and ingredients. The recovering economy, and resumption in social gatherings and mass public events will motivate consumers to increase their spending on skincare products that will enable them to look their best in all their out-of-home engagements.”

‘Convenience stores’ was the leading distribution channel in the Indonesian skincare market in 2021, followed by ‘hypermarkets & supermarkets’.

The per capita expenditure (PCE) on skincare in Indonesia increased from USD 2.6 in 2016 to USD 3.2 in 2021, falling far below the global average (USD 9.8) and the regional average (USD 9.2) in 2021. The PCE on skincare will reach USD 4.4 by 2026.

​Unilever, Procter & Gamble and the Martha Tilaar Group were the top three companies in the Indonesian skincare sector in 2021, while Pond’s and Sariayu were the top brands of the year.

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“The growing media coverage on natural beauty will drive the sales of products with natural and organic ingredients, concepts, and claims. Online ads, consumer reviews, and influencer marketing will push the brands’ sales as the young Indonesians are more inclined towards browsing through beauty blogs, social media and e-commerce portals for more details on skincare products before making a purchase.” concluded Shaw.

(Source: GlobalData )