Why You Should Build Skincare Business in Indonesia

Why You Should Build Skincare Business in Indonesia

Are you planning to expand your skincare business in Indonesia? There are strong reasons that can make Indonesia a good target market to expand your business. Let’s zoom in more on the reasons why it’s time for you to start a skincare business and how to develop a skincare business in Indonesia.

As the largest economy in Southeast Asia, Indonesia generated up to a GDP of 1.19 trillion USD in 2021, even beating Singapore. This archipelagic country with more than 16,000 islands is also listed as the fourth country with the highest population in the world. The Indonesian skincare market is estimated to reach $18,828.24 million in 2030, recording a CAGR of 7.8% from 2021 to 2030.

Despite the pandemic, cosmetics is a sector that is experiencing an increase, similar to the chemical, pharmaceutical, and traditional medicine industries, which in 2021 increased by more than 7% compared to the previous period, and continuously rising for the last period. 

Ease of doing business

As a driving force for the economy in Southeast Asia, Indonesia offers a lot for entrepreneurs. According to a report from the World Bank in 2020, Indonesia is among the countries with the ease of doing business, with a score of 69.6 worldwide. This ease of doing business is judged by good regulatory policies that support entrepreneurs.

Huge target market

Indonesia has the fourth highest population in the world at 275 million, with nearly 60% of the population under 30 years. The young population is the main key to national economic growth, particularly in the personal care and cosmetics segments.

High consumption

The expansion of the purchasing power of Indonesians is recorded to always increase, even after the pandemic. Consumption growth from the pandemic period is 5.18%, increased to 5.93% in 2021. The high consumption power also comes from the middle class with the majority of millennials and Gen Z. Many segments are targeting this generation as the drivers of their business triumph.

What does it take to expand a skincare business in Indonesia?

Now you already know and be aware of the potential market and the benefits that you will get in Indonesia, but the foremost is how to actually  develop a skincare business in Indonesia. These are the simple ways.

Market research

You can do market research after you have done the basic business plan you want to do. Who is your target market? Do they have high buying and consuming power? Does your target area only cover some areas of Indonesia? This is very fundamental considering that Indonesia is a large archipelagic nation.

Marketing strategy 

Indeed, there is something more important than big profits, namely longevity. You must have a marketing strategy that can achieve your business objectives. Since you already know your target market, you’ve already completed one task of your marketing strategy.

Registration and licensing

Selling cosmetics in Indonesia cannot be done without a distribution permit. The distribution permit is issued by The National Food and Drug Agency (BPOM). Each product has a registration code on each packaging which is valid for 3 years. It is illegal to sell products that are not registered and licensed in Indonesia. You can face up to 15 years imprisonment and a fine of up to IDR 10 million.

Find local contract manufacturer

Building skincare products in Indonesia will be easier, timesaving, and effortless if you use a local contract manufacturer. Local contract manufacturers in Indonesia are recognized by the community and the local government. Local contract manufacturers will create, develop, and manufacture your products into ideal products for you and your target consumers.

Indocare B2B has experience in creating and developing ideal products for our Indonesian clients as well as foreigners, for years. We provide a very reliable one-stop solution service for foreigners.


To find out more about how we can help develop your skincare products in Indonesia, get a free consultation with our team today

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