May 30, 2023
The cosmetics industry and market all around the world has seen a spike in development especially since COVID-19 as it gains further popularity up until now. Indonesia is no exception in the growing market of cosmetics and personal care products as demands quickly fill the market whether for local and imported cosmetic products. This growth has created many business opportunities especially for resellers and new beauty brands to integrate into the international market.
The potential and the continuous growth of the cosmetic industry has shown promising odds with reports saying how Indonesia’s cosmetic market share and demands has reached an all time high and will continue to grow. This is due to the constant increase in local popularity of cosmetics in their lifestyles with data showing the value of Indonesia's cosmetics industry was estimated at IDR 36 trillion or approximately USD $2.7 billion in 2016. That being said, it is no wonder that Indonesia has attracted many international investors through the cosmetics industry and market.
According to another market research data by Statista, the beauty and personal care in Indonesia is projected to reach $7.5 billion USD in 2021 at a CAGR of 6.5% through 2025. This projected growth is underpinned by the rising demand from the younger generation who place significant emphasis on the importance of proper skincare and the use of high-quality cosmetic products.
Demands for cosmetic goods and personal care products are mainly driven by hair care, skin care, and make-up products. This is speculated to be caused by some key factors which include:
As more people move into the middle-income bracket, they have more disposable income to spend on beauty and personal care products. There is also an underlying factor stating that the changing lifestyle trends is the most prominent factor driving the cosmetic industry growth.
Regulations regarding the importation of cosmetics goods are rather complicated in attaining the needed documents and certifications. Although these regulations for cosmetics specifically are mainly sourced from the Regulation of Head of BPOM No. 12 of 2015 regarding Import Certificate (Surat Keterangan Impor/SKI) and Regulation of Trade Minister No. 87 / MDAG / PER / 10 /2015 regarding provisions of specific products by General Importer Identification Number (Angka Pengenal Importir Umum/API-U). These regulations definitely also have additional requirements or more specific contents but these two regulations are the base foundation of cosmetic import regulation.
Indonesia’s geographical location and its diverse cultural heritage have also played a significant role in attracting international investors to the cosmetics industry. The country is home to a rich variety of traditional beauty rituals and ingredients that have captivated the interest of global consumers. With its vast natural resources and unique botanicals, Indonesia offers a wealth of opportunities for the development of innovative and sustainable cosmetic products.
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In this case, shipping beauty and personal care products is our specialty. We have handled top brands in electronics, FMCG, heavy machinery, textile, toys, and many more. With 33 years of experience in the logistics industry, you should rest assured that your consignments are handled with the utmost attention to safety.
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