Indonesia’s beauty care market, once dominated by European and American brands such as L’Oreal and Procter & Gamble, is witnessing a growing shift in consumer preferences. Local brands like Esqa and Rose All Day Cosmetics (RADC), offering halal-certified products by Islamic law, are gaining traction, particularly among young consumers.
Winny Triswandhani, an avid consumer of Esqa’s cosmetics, recently switched from L’Oreal’s Maybelline New York brand. She praised Esqa’s concealer for its quality, affordability, and suitability for Indonesia’s tropical climate. This shift reflects a broader trend of Indonesian consumers seeking homegrown brands that cater to their specific needs.
Esqa, owned by Keva Cosmetics International, specializes in halal makeup formulated with vegan ingredients. In addition to online sales, the brand has expanded its presence in various retail outlets, including Sociolla, Sephora, and Watsons. Kezia Trihatmanto, the co-founder of Esqa, highlighted the high demand for halal products in Indonesia due to the population’s preference for certified options.
Similarly, RADC, founded in 2017, has experienced remarkable growth in popularity. With halal certification and a vegan approach, the Jakarta-based company quadrupled its revenue in 2022 and is on track to surpass last year’s sales by six times. Tiffany Danielle, RADC’s co-founder, emphasized the brand’s mission to disrupt the Indonesian beauty industry and eventually establish a global presence.
While European and American brands still hold the largest market share in Indonesia, their dominance has slightly decreased in recent years. According to Euromonitor International, Unilever held 22.5% of the market in 2022, followed by P&G at 7.6% and L’Oreal at 5.4%. Collectively, their share decreased from 42.6% in 2016 to 35.5% in 2022. In contrast, Paragon Technology and Innovation, an Indonesian beauty company, witnessed an increase in market share from 1.9% to 3.1% during the same period.
The Indonesian government’s 2014 implementation of halal certification requirements for consumer products has also influenced the market. By 2026, halal certification will be mandatory for cosmetics, although companies will still be able to sell non-halal products if labeled accordingly. While some global companies express concerns about the costs associated with establishing dedicated production facilities, local brands have seized the opportunity to cater to the growing demand for halal products.
As Indonesian brands continue to flourish domestically and expand into neighboring markets, the competition between local players and global giants like L’Oreal and Unilever is intensifying. While the established brands maintain their appeal among affluent consumers, the rise of halal-certified, locally rooted cosmetics signifies a notable shift in consumer preferences in Southeast Asia’s largest economy.
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