Beauty and Personal Care Packaging in Indonesia

PRE-COVID-19 PERFORMANCE

Travel-size formats prove popular with consumers in 2019

With continued strong growth in travelling among Indonesians, travel-size products in beauty and personal care gained in popularity towards the end of the review period, particularly in colour cosmetics and skin care. In 2018, retailer Miniso claimed that one of its best-selling products was travel-size cosmetics and jars, leading the company to create a dedicated section to such formats.

Players aim to reassure consumers of product safety and clean ingredients through secondary packaging and minimalistic design in 2019

Rising environmental awareness and concern over sustainability led some brand owners to devise programmes specifically to support the trend towards the end of the review period. The most popular type of programme involves and integration of customer loyalty programmes and recycling programmes, whereby companies reward customers who return packaging product with free products.

Labels display more free-from claims in 2019, and new regulations demand halal status on packaging

The trends towards naturalness and the organic are evolving in Indonesia, and at the end of review period high-income consumers, in particular, were increasingly actively seeking out natural ingredients in and avoiding ingredients such as parabens and alcohol. Players responded with packaging labels highlighting a product’s natural ingredients and claims that the product is paraben-free and alcohol-free.

2020 AND BEYOND

COVID-19 impact

Beauty and personal care packaging will see a slight slowdown in overall growth in 2020. Fragrances packaging is predicted to see the steepest decline, followed by deodorants, colour cosmetics and hair care packaging.

Recovery and opportunities

Already price-sensitivity Indonesian consumers are likely to show more economic caution over the forecast period, with rising unemployment and falling disposable incomes as a result of reduced demand and investment during COVID-19 motivating reduced spending in many beauty and personal care categories. However, those products which promise to assist in preventing the spread of the virus and to strengthen defence against infection are likely to do well.

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