Sluggish household spending has weighed on Indonesia’s retail sector, with estimated growth below 5 percent in 2025. However, the beauty industry continues to post solid gains and is projected to keep expanding in 2026, supported by steady demand across physical and online channels.
While food and beverages (F&B) remain the largest retail segment in the country, beauty recorded the strongest growth last year, according to the Indonesian Retail and Tenants Association (Hippindo). “In terms of percentage growth, [beauty retail] is the highest,” Hippindo chairman Budiharjo Iduansjah said. “Beauty growth is in double digits. If other categories grow at around 5 to 10 percent, beauty can reach 12 to 15 percent annually. That is same-store growth,” he told The Jakarta Post on Dec. 30.
The resilience of beauty product sales is also reflected in online transactions. Personal care products, including cosmetics and body care items, continued to rank among the most frequently purchased goods on e-commerce platforms in the third quarter of 2025, Statistics Indonesia (BPS) data show. The Indonesian E-commerce Association (idEA) said the beauty and personal care segment was “a favorite” among online shoppers throughout 2025.
While global brands continued to dominate the premium segment, consumer behavior last year showed growing openness to domestic brands, particularly outside the premium price range, idEA secretary-general Budi Primawan told the Post. “In beauty, local brands had a strong year. Many domestic cosmetic brands grew faster than global players, especially in the mass and mid-range segments,” he said. He attributed this to local brands’ understanding of skin needs, pricing, halal positioning and social media-driven storytelling.
The association expects e-commerce growth to accelerate, supported by repeat-purchase categories. “Beauty, fashion basics and everyday essentials will likely remain key drivers. The focus will shift from heavy discounts to trust, content and consistency,” Budi said.
Coordinating Economy Minister Airlangga Hartarto praised the cosmetics industry’s performance, noting that it generated revenue of around IDR 35.6 trillion (US$2.1 billion) in 2025 and was projected to grow 4.73 percent annually. He said personal care, skincare and make-up remained the main contributors, in line with rising awareness of self-care and product quality. Spending on clothing, footwear and personal care services also supported economic growth in the third quarter of 2025.
On the production side, the Food and Drug Monitoring Agency (BPOM) and the Indonesian Cosmetics Companies Association (Perkosmi) reported that the number of cosmetics companies reached 1,500 as of October 2025, up from 1,292 a year earlier, with 87 percent classified as small and medium-sized enterprises (SMEs). Registered cosmetic products rose by more than 50,000 in 2025, bringing the total to over 343,000 nationwide.
Despite the expansion, Indonesia remains a net importer in certain cosmetic categories. In the first 10 months of 2025, exports of essential oils, fragrances and cosmetics totaled $97.8 million, while imports reached $147.7 million, BPS data show. The government has introduced regulatory measures to strengthen local manufacturers, including mandatory halal certification for cosmetics starting in 2026. Industry Minister Agus Gumiwang Kartasasmita said the policy would enhance trust and competitiveness, particularly in Muslim-majority markets, while enabling SMEs to highlight local heritage, traditional beauty practices and natural ingredients. Looking ahead, Airlangga said Indonesia’s 75 million Generation Z consumers and recent trade diplomacy efforts, including the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), offer strong potential for local beauty brands to expand globally.
January 10, 2026, The Jakarta Post
(https://www.thejakartapost.com/business/2026/01/10/indonesian-beauty-brands-ride-industry-boom-eye-global-market.html)