The Coordinating Ministry for Economic Affairs reported a notable surge in Indonesia's cosmetic industry, with the number of companies reaching 1,010 by mid-2023, a 21.9% increase from 2022. Airlangga Hartarto, the Minister, highlighted the industry's successful foray into exports, totaling USD 770.8 million for cosmetic, fragrance, and essential oil products from January to November 2023. Emphasizing that 95% of the local cosmetic industry comprises Small and Medium Enterprises (SMEs), Airlangga noted its significant role in employment, providing jobs for about 59,886 individuals in 2022. He attributed this growth to Indonesia's youthful demographic and the rising awareness of skincare and appearance, fostering the emergence of numerous local cosmetic brands. The trend toward using local products signals an improvement in quality, enabling competitiveness against foreign brands. In 2022, the largest market segment was personal care products, valued at USD 3.18 billion, followed by skincare at USD 2.05 billion, cosmetics at USD 1.61 billion, and fragrances at USD 39 million.

The national market potential for 2023 is estimated at 467,919 products, marking a more than tenfold increase over five years. Globally, the market is projected to reach USD 473.21 billion by 2028, with an average annual growth rate of 5.5%. The rapid growth of e-commerce in Indonesia has driven sales, with personal care and cosmetics ranking among the top three categories from 2018 to 2022, generating transactions valued at IDR 13,287.4 trillion and a volume of 145.44 million. The cosmetics and personal care market is also influenced by the halal trend, prompting the development of new products and brands that combine natural ingredients as innovative beauty solutions. Airlangga expressed optimism about the industry's future, highlighting Indonesia's vast natural resources as raw materials and the potential to tap into international markets, particularly in the Middle East and Africa. He underscored the ministry's commitment to supporting the industry's growth and its role in bolstering the blue economy through the utilization of cosmetic raw materials from Indonesian waters.

Source: https://www.marketeers.com/jumlah-industri-kosmetik-naik-219-nilai-ekspor-capai-us-7708-juta/