Building a Successful Skincare Business in Indonesia’s Booming Market
Indonesia’s skincare industry is booming, driven by Gen Z consumers, halal-certified local brands like Somethinc and Skintific, and digital platforms like Shopee and TikTok. Learn why this vibrant market offers big opportunities for new entrepreneurs.
Indonesia’s skincare industry is experiencing unprecedented growth, driven by shifting consumer habits, social media influence, and increasing demand for halal and locally tailored products. With a young, digitally savvy population and rising awareness about skincare, this Southeast Asian giant presents a golden opportunity for local and international entrepreneurs alike.
The Indonesian beauty and personal care market was valued at over USD 7 billion in 2022, with skincare accounting for more than 30% of the total. According to industry analysts, this segment is expected to reach USD 10 billion by 2027, growing annually at around 7–10%. The pandemic accelerated wellness trends, pushing consumers to prioritize self-care routines that center around skincare.
Much of this growth is fueled by Gen Z and millennial consumers (ages 18–35), who make up the majority of Indonesia’s population. This demographic is highly active on platforms like TikTok, Shopee, and Instagram, using them not only for product discovery but also for tutorials, reviews, and purchases.
Massive market expansion: Indonesia’s beauty and personal-care market was valued at around US $7 billion in 2022 and is projected to reach US $10 billion by 2027, growing at about 7–10% per year. Skincare segment boost: It makes up ~30% of the sector, with an annual growth of ~6–9% and sales rising due to young, urban consumers and post-pandemic spending .
Rising middle class & disposable income. Urbanization and economic uplift – including projections of 135 million middle-class Indonesians by 2030 – are increasing beauty and self-care spending .
Youthful and digitally savvy consumers. With over 270 million people and more than half under 30, social media and influencer culture heavily influence purchase habits. Around 78% check local influencers, while 91% compare deals before buying .
Local brands with relevant formulas. Brands like Wardah, Scarlett, Somethinc, Avoskin, Sariayu, and Mustika Ratu offer halal‑certified, climate‑adapted products using indigenous ingredients (e.g., Centella asiatica, turmeric) that align better with consumer needs.
Halal, natural & eco-conscious trends. Indonesia’s mandatory halal certification (since 2019), along with strong demand for cruelty‑free, eco‑friendly, and alcohol‑free formulations, boosts brands featuring compliant and transparent sourcing.
Digital & omnichannel retail. E-commerce platforms (Tokopedia, Shopee, Lazada, TikTok Shop, Sociolla) paired with offline presence (pharmacies, pop-up stores) enable trial access and convenience.
Local botanicals & skin science: Indigenous ingredients like pegagan, temulawak, moringa, binahong—plus microbiome-focused actives (probiotics, prebiotics), gentle retinol alternatives like bakuchiol, niacinamide, and brightening agents—are becoming mainstream. Hybrid skincare: Products that blend skincare with makeup (like tinted serums with SPF) are gaining momentum for their convenience.
Sensitive-skin and barrier-friendly formulations: Brands are launching products tailored to climate-induced sensitivity, with claims of microbiome support growing from 30% to 38% since 2022.
Affordable, effective local brands (Somethinc, Avoskin, Skintific, Somethinc’s “Low pH Gentle Jelly Cleanser”) offer quality comparable to global names but at lower prices. Influencer marketing via selebgrams and micro-influencers is significantly boosting local brand visibility and trust. Sensitive-skin seekers are drawn to calming ingredients, alcohol-free formulations, and barrier repair lines like Avoskin and Callista.
Continued double-digit growth until 2027, with potential market expansion into personalized, AI-driven skincare (like virtual skin assessments) and more sustainable, refillable product models. Localization and global influence: Indie brands are gaining traction domestically and positioned for export. Meanwhile, international players (K‑beauty, J‑beauty, Chinese brands) are increasingly competitive through e-commerce and hybrid retail strategies.
Leading Skincare
Wellness & Self-Care Shift. After the pandemic, Indonesians became more conscious of skin health. Products like toners, serums, face mists, and sunscreen surged in popularity.
Influencer Education. Many influencers and dermatologists on platforms like TikTok and Instagram educate users on skincare routines, ingredient safety, and long-term skin benefits—sparking trust in local brands like Somethinc, Avoskin, Skintific, and Scarlett.
Daily Use Products. Skincare (e.g., cleansers, moisturizers, sunscreen) is used daily, unlike full-face makeup which is often reserved for special occasions or work environments.
Halal & Natural Preference. Indonesia’s young Muslim-majority population prefers halal-certified, cruelty-free, alcohol-free, and plant-based skincare, especially for acne-prone and sensitive skin.
TikTok beauty trends (e.g., "clean girl look", “blush contouring”) are driving sales of lip tints, cream blush, brow gels, and lightweight foundations. Popular local brands in cosmetics: Make Over, Emina, Wardah, Luxcrime, Dear Me Beauty. Hybrid makeup-skincare products (e.g., SPF cushions, tinted sunscreens, hydrating lip oils) are helping cosmetics remain relevant.
Skincare is the stronger segment in Indonesia’s beauty market today—fueled by health-conscious habits, halal preferences, and daily usage. Cosmetics is still relevant, especially with the rise of TikTok-driven trends and affordable local brands, but its growth is slower.
Indonesia’s skincare boom is driven by a potent mix of: A growing, digitally-connected, value-conscious consumer base. Rising local brands tuned into halal, natural, and sustainable trends. Innovative product formats (hybrid, sensitive-skin solutions). A smart blend of e-commerce and offline retail presence. It’s a dynamic ecosystem capturing both heart and market share—firmly on track for robust growth through 2027!
Modern Indonesian skincare consumers are informed and selective. They gravitate towards products that are: Halal-certified. Safe for sensitive and acne-prone skin. Alcohol-free, fragrance-free, cruelty-free. Made with natural or herbal ingredients, such as Centella asiatica, turmeric, mugwort, and green tea. Priced accessibly, typically in the Rp 50,000–200,000 (USD 3–12) range
The most in-demand products include cleansers, niacinamide serums, toners, exfoliating acids, and sunscreen. Formulas with lightweight textures are preferred, given Indonesia’s tropical and humid climate.
The Indonesian skincare boom has created space for local brands to thrive alongside global names. Key homegrown players include:
1. Somethinc – Known for its Low‑pH Jelly Cleanser and Niacinamide Serum, the brand has seen massive success through social commerce and TikTok marketing. Their Low‑pH Gentle Jelly Cleanser has been repeatedly cited as Indonesia’s #1 jelly cleanser, praised for its gentle formula using mugwort, tea tree, Centella asiatica, and calendula—ideal for sensitive skin. The Niacinamide + Moisture Beet Serum has also gone viral, offering effective brightening and hydration, with sales reaching Rp 53 billion
2. Skintific – A science-forward brand that gained popularity for its gentle acid exfoliants and barrier-repair moisturizers. Leads the online face-wash/cleanser category with ~16–18% market share, dominating platforms like Shopee. Their Acid Peeling Solution Serum sold in Q3 2024, reinforcing its strong consumer appeal
3. Avoskin – Praised for clean, eco-conscious formulations and AHA/BHA toners. Known for eco-conscious skincare, their Miraculous Refining Serum and hydrating essences are consistently praised for quick, visible results. Reddit users also love their retinol and AHA/BHA serums: “Avoskin generally has good products…Their retinol serum and AHA/BHA serum are amazing!” “Avoskin refining toner…really helps smooth my skin texture”
4. Scarlett Whitening – Originally known for body care, Scarlett has expanded into acne-focused facial care with great success. Achieved Rp 40.9 billion in sales, largely fueled by acne-targeted serums and brightening body lotions, boosted by influencer campaigns
5. Wardah – One of Indonesia’s first halal-certified beauty brands, trusted by a broad consumer base. A longstanding favorite with ~30–37% market share in cleansers and toners; products like the Lightening Face Toner remain top-sellers. It's widely recognized as Indonesia’s #1 halal skincare brand
These brands have leveraged social media, influencer partnerships, and e-commerce platforms like Shopee, Tokopedia, and Sociolla to reach millions of consumers monthly.
More than 81% of Indonesian skincare buyers shop online, particularly through Shopee, Tokopedia, TikTok Shop, and Instagram. The rise of livestream selling, affiliate influencers, and bundle deals has made digital marketing a key driver of growth. However, offline experiences such as beauty counters and pop-ups still play a role in product trials and brand building.
Here’s what the latest market research and user insights reveal about skincare sales demographics in Indonesia:
Age & Gender
· 18–29 years old: ~41% of skincare consumers
· 30–39 years old: ~32% ⇒ Together they make up about 73% of the market
· Gender: Predominantly female, but male consumers are the fastest-growing segment—indicating rising interest in men’s skincare .
Geography & Income
· Urban-centric: Major demand in cities like Jakarta, Surabaya, and Bandung—urban areas are hubs for access, education, and retail
· Household income: ~39% of users are from high-income households, able to invest in premium and imported brands. However, the majority are price-conscious, spending about Rp 100K–400K/month (~$6–24) on skincare.
Product Type Preferences
Face care dominates (~57% of total skincare sales). Sun protection is the fastest-growing segment (CAGR ~7.8%), thanks to rising UV awareness. Body, eye, and lip care make up smaller slices of the market.
Purchase Channels
· E‑commerce leads: ~81% of consumers shop online—favored for competitive prices, reviews, and convenience. Offline still matters—beauty and pharma stores are trusted for testing, sensing, and expert advice.
· Social commerce & livestream (e.g. TikTok Shop) strongly influence Gen-Z and millennials YCP
Other Key Behaviors & Preferences
Product criteria: 80% prioritize safety (e.g., halal, dermatologically tested, alcohol‑free), 50% look at pricing factors, and 28% rely on personal recommendations. Ethical & functional trends: “Sensitive-skin” claims jumped from 34% to 43%; natural, microbiome-friendly, barrier-focused products are growing. Youth adoption is early: Many Gen-Z & Gen‑Alpha users start skincare routines in teens, influenced by social media and KOLs.
Target market: Youthful, urban consumers (18–39), mostly women but growing male interest. Spending range: Typically low to mid-range; a smaller segment seeks premium or imported products. Online-first, but offline retail remains essential for sampling and trust. Key buying factors: certified safety, affordability, and influencer or referral influence.
Indonesia’s skincare market is far from saturated. There are still untapped opportunities, such as:
· Halal-certified men’s skincare
· Minimalist skincare lines for teens or first-time users
· Hybrid skincare-makeup formats
· Local ingredient-focused premium lines for export
· Sensitive skin and microbiome-focused products
Entrepreneurs should prioritize product safety, simplicity, and affordability, and work closely with influencers and dermatologists to build trust.
Starting a skincare business in Indonesia can be highly rewarding due to the country’s booming beauty market and strong demand for both local and international products. Here are practical tips for new business owners entering the skincare space in Indonesia:
Focus on a specific category where you can stand out: Sensitive skin / acne-prone care. Halal-certified skincare. Natural or herbal-based formulas. Men’s grooming & skincare. Anti-aging / wellness-infused skincare. Hybrid skincare-makeup (e.g., tinted sunscreen). Example: Somethinc targeted Gen Z with affordable, trendy serums and quickly rose to fame.
Develop Products That Fit Local Needs. Indonesian consumers prefer: Light, non-greasy textures (humid climate!). Alcohol-free, fragrance-free, sensitive-skin safe. Natural ingredients: green tea, Centella asiatica, turmeric, etc. Halal-certified (especially for Muslim consumers). Affordable pricing (Rp 50K–200K range is the sweet spot). Formulate products that work for oily, combination, or acne-prone skin.
Start Small with a Hero Product
Don’t launch a full line at once. Start with 1–2 strong SKUs: A cleanser. A serum or toner. A bestselling format (face mist, SPF, essence). “One hero product” strategy is what helped Avoskin and Skintific gain traction.
Leverage TikTok & Shopee for Growth
Indonesia’s beauty consumers are highly active on TikTok, Instagram, Shopee, and Sociolla. Work with micro- and nano-influencers. Use TikTok Shop and livestreams to showcase demos. Offer bundle deals or flash sales on Shopee & Tokopedia. Encourage user-generated reviews and testimonials. TikTok drove viral growth for Scarlett Whitening and Skintific.
Distribute Smart: Online-First, Offline-Optional
Start with e-commerce to minimize costs:Shopee, Tokopedia, Lazada, TikTok Shop, Sociolla. Your own website using Shopify or Tokoweb
Once you grow: Join Sociolla offline counters or Watsons/Guardian. Do pop-up booths or beauty event collaborations.
To operate legally in Indonesia, skincare brands must:
Register with BPOM (Indonesian FDA equivalent)
Obtain Halal certification (BPJPH + MUI) if claiming halal status
Ensure accurate labelling in Bahasa Indonesia
Comply with ingredient safety lists and packaging regulations
These steps are essential for selling via online marketplaces or entering retail chains.
Mandatory: BPOM registration for cosmetics and skincare. Halal certification from BPJPH + MUI (if applicable). Without BPOM, you cannot legally sell skincare in Indonesia, even online.
Other helpful steps: Dermatologist-tested label. Cruelty-free, eco-friendly, or vegan claims
Prioritize Packaging & Branding
Indonesians love: Sleek, K-beauty–inspired packaging. Pastel tones, minimalist fonts. Clear labels showing function: “Brightening,” “Anti-Acne,” “Sensitive-Safe” Bilingual labels (Bahasa Indonesia + English). Include QR code to access product tutorials or ingredient list.
Study Your Competitors
Track top local brands: Somethinc, Skintific, Avoskin, Emina, Wardah, Scarlett
· What are their price points?
· What are their bestselling SKUs?
· What influencers do they use?
· What platforms do they dominate?
Build Trust Through Education
Educate consumers about your ingredients: Short videos explaining what makes your formula unique. Blog posts on skincare routines. Real testimonials, before-after pictures. Skincare buyers in Indonesia care about efficacy, safety, and transparency.
Think Long-Term: Export Potential
If your brand succeeds locally, you can export to: Malaysia, Singapore (halal market). Vietnam, Thailand, Philippines (SEA skincare boom). GCC countries (Dubai, Saudi) for halal + wellness combo. Indonesian skincare brands like Avoskin and Sensatia Botanicals are now expanding internationally.
Tips from Local Entrepreneurs
“Don’t try to copy international brands—Indonesian consumers love formulas that feel familiar but better. Focus on needs they know: acne, dull skin, oily skin.” – Founder of a local beauty startup
The Indonesian skincare market offers a vibrant, high-growth space for innovation, especially in affordable, halal, and skin-friendly products. With strong digital adoption, a youth-driven population, and rising income levels, the opportunity to build a thriving skincare brand in Indonesia has never been brighter.
For entrepreneurs looking to enter Southeast Asia’s beauty space, Indonesia is not just an option—it’s a must.