The Chairman of the Indonesian Cosmetic Companies Association, Sancoyo Antarikso, explained that the cosmetic industry is divided into two categories: beauty and personal care. The beauty category has been the main driver of the cosmetic industry's growth. He estimated that the market value for beauty and personal care this year would reach USD 9.74 billion (at an exchange rate of IDR 16,539 per USD). Sancoyo added that while growth is expected to continue, potential slowing of household consumption remains a challenge. He noted that national economic growth in Q1 2025 was 4.87%, with household consumption as the largest contributor to this growth.

Cosmetic industry players are preparing strategies to align their products and pricing with consumer purchasing power, focusing on an "affordable premium" approach, offering premium quality products at affordable prices. For example, by using smaller packaging or basic products with added premium ingredients, production costs can be lowered, making prices more accessible to consumers. Local cosmetic producers remain optimistic about growth prospects, as all consumer segments—men, women, babies, teens, and adults—show increasing interest in cosmetics for various daily needs. Additionally, abundant local raw materials present opportunities for downstream cosmetic industry development, reducing reliance on imported raw materials, which currently make up 60-80% of supply. Industry players are working collaboratively to tap Indonesia’s potential, aiming to decrease the share of imported raw materials over time.

Source:
https://swa.co.id/read/459620/nilai-pasar-industri-komestik-diproyeksikan-rp161-triliun-di-2025