Indonesia: Launchpad for halal-certified beauty and personal care brands

All eyes are on Indonesia as the beauty & personal care sector accelerates toward USD 9.74 billion in value by 2025, with a compound annual growth rate (CAGR) of 4.33% through 2030 (based on the latest market outlook from Statista). As the top-performing segment, personal care generates USD4.10 billion in revenue, followed by skincare and cosmetics. Meanwhile, e-commerce and social commerce  are expected to contribute 19.6% of total beauty revenue this year.

Less is more, but smarter

As forecasted in previous years, the Gen Z and millennials are now shaping the trends: Skinimalism is the minimalist approach to skin care that prefers simplified routines. The Hybrid Beauty trend also simplifies routines as hybrid products can do more than one function, such as cosmetics that also protect the skin. The trend toward Ingredient Transparency is now more important than ever as consumers expect brands to disclose the sources and efficacy of their products.

(Photo: Prostockstudio I Dreamstime.com)

For the Muslim-majority population of Indonesia, demand for halal-certified and eco-conscious beauty products is reinforced by regulatory mandates requiring halal certification for cosmetics by 2026. Young consumers are said to equate clean beauty with wellness and transparency.

Skincare remains the leading subcategory, forecasted to grow at a CAGR of 9.4% through 2028, driven by demand for barrier-repair, anti-aging, and multifunctional formulations.

Color cosmetics and fragrance are gaining momentum, particularly among younger consumers and urban professionals seeking expressive and trend-forward products.

Men’s grooming and suncare are emerging as high-potential niches, supported by increased awareness of skin health and personal care among male consumers.

Regulatory compliance is a critical factor, with brands needing to navigate BPOM regulations and halal certification standards to ensure market access and consumer trust. Ingredient scrutiny is intensifying, as consumers demand transparency around safety, sourcing, and sustainability. Rapid trend cycles and shifting preferences require agile product development and localized marketing strategies to stay competitive.

What’s beyond 2025?

Given the current industry developments, Indonesia will see positive growth in beauty tech, customized skincare, and AI-driven diagnostics. The sustainability shift will continue to influence packaging innovation and clean formulation strategies, with brands investing in eco-friendly materials and circular design.

Indonesia is well-positioned to become a halal beauty hub in Southeast Asia, attracting foreign investment and regional brand expansion. For manufacturers, distributors, and investors, the opportunity lies in building trust, delivering relevance, and aligning with Indonesia’s evolving consumer values.

Capitalizing on the strong growth trajectory of Indonesia’s beauty and personal care sector, Ringier Events will present the 2025 Personal Care Technology Summit, taking place from December 4-5 in Jakarta. This gathering will bring together leading innovators, formulators, and brand strategists to explore the future of personal care in Southeast Asia’s most exciting market. To learn more about this B2B conference, you may visit 2025 ASEAN Personal Care Technology Summit.

References

6Wresearch – Indonesia Beauty and Personal Care Market Outlook

6Wresearch – Indonesia Cosmetic Products Market Outlook

Statista – Beauty & Personal Care Market Forecast: Indonesia

InvestinAsia – Indonesia Beauty Industry: Outlook and Opportunities