"Indonesia offers a huge opportunity in the cosmetics industry given its vast domestic market, the availability of qualified human resources as well as the immense potential of local raw herbal ingredients. Indonesia is undeniably unique," one of the country’s trade ministers, Afrida Suston Niar, has said.
The deputy director of the Pharmaceutical and Cosmetics Ministry of Industry of the Republic of Indonesia, made the comments at the press launch of a new trade event in the country, Beauty Indonesia, which takes place next April.
Forget BRIC, think BIITS
Long a major sourcing spot for palm oil for multinational companies, Indonesia’s domestic personal care market has struggled in the past to make the most of its abundant natural ingredients offering for itself - but it looks like times are changing.
The country is now included in the recently identified BIITS markets – Brazil, India, Indonesia, Turkey and South Africa, which have usurped the BRIC markets – Brazil, Russia, India and China – as the primary focus for growth.
Indeed, thanks to rapid economic growth in recent years, Indonesia is amongst the fastest growing cosmetics markets worldwide, according to a recent overview from market research firm Euromonitor International.
The market research firm has picked the country out as one of the next big markets in global commerce, singling it out specifically as “one to watch”.
With the rise of urbanisation across Muslim-majority countries in South Asia and the Middle East, halal beauty is becoming an increasingly robust sector, and this is proving a particular boost for countries like Indonesia.
The rise of the halal category comes particularly hand-in-hand with a rising segment of young, modern Muslim women, keen to combine religious observance with an emphasis on fashion and beauty.
The Philippines and Pakistan are two countries in the region which already this year have made moves to strengthen domestic halal output, in confirmation that governments and brands alike are keen to tap into the strong potential growth that halal beauty offers.