Cotton Wool/Buds/Pads in Indonesia

TRENDS

In 2014, volume sales growth in cotton wool/buds/pads slowed down significantly from the previous year, to 6%. As the US dollar strengthened in the global market, the rupiah was at its weakest against it since 2010. More than 90% of cotton sold in Indonesia comes through importing, and the price of cotton, the raw material for cotton wool/buds/pads as well as the textile industry, soared during 2014. On top of that, in cotton buds, manufacturers were facing burgeoning costs for acquiring plastic seeds, major components in cotton buds. Overall, the increasing costs were gradually transferred to the retail unit prices across the review period, which resulted in slower sales growth than previously estimated.

COMPETITIVE LANDSCAPE

Despite registering a declining value share, Charmindo Mitra Raharja PT still led cotton wool/buds/pads in 2014 through extensive offerings of various cotton products. The company markets a wide range of cotton products in its portfolio and offers premium as well as economy products. The company’s strength lies in its line of cotton wool/buds/pads under the Charmi brand, which was subject to many innovative product developments during the review period. These developments included cotton swabs, sharp-tip cosmetic cotton buds for the application and removal of mascara, cotton buds for babies, cotton buds for adults, and disposable ear picks as well as spiral-shaped cotton buds for extra efficacy.

PROSPECTS

Changing lifestyles, growing urbanisation and a rising population, as well as rising disposable income, will continue to sustain growth for cotton wool/buds/pads in Indonesia across the forecast period. However, growth is anticipated to slow down significantly to just a moderate value CAGR of 3% at constant 2014 prices. Cotton wool/buds/pads will continue to serve mostly the middle-upper-income consumer segment due to its products not being regarded as necessities.

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