Fragrances in Indonesia

2020 IMPACT

Opportunities to wear fragrances are few and far between in health crisis

COVID-19 heavily impacted demand for fragrances in 2020, with premium and mass fragrances posting considerable declines in volume and value sales. In response to the health crisis, lockdown was imposed in Indonesia, leading to many working or studying from home and gatherings being banned.

Premium segment already under pressure before health crisis

Fragrances was a category already facing challenging market conditions prior to the pandemic, recording the lowest current value growth across beauty and personal care in 2019, with most consumers regarding these products as non-essential. Many consumers cut back on spending during the year, with fragrances the most likely product to left out of shopping baskets, as most use deodorants rather than fragrances for scent.

Crowded landscape edged by mass player Kinocare overall

Fragrances remained highly fragmented at the end of the review period, with smaller players collectively dominating and often continuing to gain share. Domestic player Kinocare was the only company to have a near-double-digit value share in 2020 due to its offer of affordable mass brands Eskulin and Master Cologne in women’s and men’s fragrances respectively.

RECOVERY AND OPPORTUNITIES

Road to recovery will be slow owing to lack of necessity combined with competition from skin care

It is expected that fragrances will not record value sales of the magnitude posted in 2019 until 2024, with recovery in demand taking a while longer compared with colour cosmetics and other beauty products. As fragrances are counted as tertiary products and Indonesia plunged into recession in 2020, many consumers in the country are likely to continue to buy them less.

Deodorant sprays likely to attract cash-strapped consumers

Overall, the fragrances category in Indonesia is not predicted to record a better performance over the forecast period versus the review period. Increasingly popular in the country, deodorant sprays will be a more affordable and attractive alternative for a growing number of consumers.

Male consumer base likely to keep increasing

With men increasingly interested in grooming, male consumers have become a promising target group for players competing in mass fragrances. Rising enthusiasm for these products during the review period was supported by strong growth in gym membership and men’s growing interest in fashion.