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Cosmetics giants L’Oréal, Unilever and Martina Berto are increasing investments in the Indonesian beauty market, where surging demand for cosmetics products within an expanding middle class is contributing to considerable sales growth.
L’Oréal opened its largest factory in Java last month in response to rising demand in the archipelagic state, the third-biggest beauty market in Asia.
The company’s sales in Indonesia have expanded by a steady annual rate of 30% over the past four years, as brands such as L’Oréal’s Maybelline and Garnier skin and hair products – many of which cater specifically to Asian requirements by containing whitening agents or sun protection factors – win over female consumers.
The company has also targeted high-end Indonesian buyers through sales of Body Shop or Shu Uemura products. Indonesia’s male beauty market – which grew 60% last year compared to 2010, and 65% in the first 11 months of 2012 compared to the same period in 2011 – is one of the largest in Asia.
As gross domestic product grows at a rate of over 6% a year, Indonesia is the fastest growing market in the Asia-Pacific and is set to lead Southeast Asian growth in the coming five years. By 2030, Indonesia’s current population of 240 million is expected to grow by 16% to 280 million, of which 244 million will be considered middle class citizens.
The Indonesian beauty market generated more than $1.5 billion last year. In 2012, 9,000 cosmetic products were officially registered for sale, more than food or any other consumer product.