The beauty and personal care market in Indonesia continues to ride a wave of growth. In 2011, sales were up by 13.5 percent to $3.06 billion at current exchange, according to Euromonitor, which came on top of a 12 percent increase in 2010.

Indonesia is the biggest economy in Southeast Asia with a population of 230 million and gross domestic product [GDP] growth of 6 percent in 2011; the economy is also fairly stable. The middle class, estimated to be 134 million in 2011, has been growing fast, with a per-capita income of $3,550 in 2011, according to The Central Bureau of Statistics. This has led to the emergence of a consumer who is ready to spend and is willing to experiment more with beauty.

Indeed, over the past two years, consumers have been going beyond their basic beauty needs, testing new products, adding more whitening and skin smoothing products to their shopping baskets and experimenting with make-up. They are also feeling their way through the premium market, based on the assumption that prestige brands make products they can trust.

The premium beauty market saw growth of 15.9 percent in 2011 to $123 million. In color cosmetics and skin care, multi-tasking products have gained in popularity, for example, foundations incorporating SPF, and skin care such as local brand Martha Tilaar’s Caring Colours BB Cream, which promises brightening, moisturizing, anti-aging and sun protection properties. One segment that’s seeing strong growth is men’s grooming. According to a 2011 report from Nielsen Indonesia, spending on men’s grooming grew at three times the rate of women’s, and was up 29.3 percent from the previous year. Fragrances, especially those with more natural scents are in strong demand among male consumers.

To read BW Confidential’s full report on the beauty market in Indonesia go to: