Beauty Hot Spot: Indonesia

Move over, South Korea — Indonesia may be the next emerging beauty market to watch. The region, which was the fastest-growing in Asia between 2011 and 2016, is expected to grow at a compound annual rate of 8 percent between 2016 and 2021, according to Euromonitor International. “The Indonesian government is prioritizing cosmetics as a focus of its National Development Plan for Industry until 2019,” said Joanna Chan, a research analyst with Euromonitor. “It aims to increase exports of beauty products to neighboring countries such as Malaysia, Brunei Darussalam and Australia. Further, to assist domestic cosmetics companies in cost reduction, the Indonesian government is pushing for a pilot project to manufacture raw materials locally instead of importing raw materials, which is a rather expensive practice.” Lately, local beauty brands have gained market share from international players like Unilever Indonesia, Euromonitor’s research shows. One local business, Paragon Technology and Innovation, was early to gain halal certification for beauty products in its Wardah line — a move of significance in a country with a large Muslim population. “With the Muslim population increasingly wary of the ingredients in the products they apply onto their skin, the halal certification, along with the use of natural ingredients, put an

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