Shampoo is big business in Indonesian haircare market

SHAMPOO sales alone made up half of Indonesia's 17.3 trillion rupiah (US$1.2 billion) haircare product market in 2019.

And shampoo products are tipped to hit their peak market share in Indonesian by 2024, when the haircare market could be worth 25 trillion rupiah in all.

Indonesians' per capita consumption of shampoo products was higher than other haircare categories, even though the average use of haircare products was still lower in the country than in the rest of the region and the world, according to a recent report from industry research firm GlobalData.

Product categories examined in the report included colorants, hair loss treatments, perms and relaxers and styling agents. Consumer multinationals Unilever, Procter & Gamble and L'Oreal dominated the market, making up 86.1 per cent of shampoo sales by value and 68.5 per cent of overall haircare product receipts.

GlobalData consumer analyst Susmitha Bynagari noted that there is rising demand in Indonesia for halal-certified hair care products, while "consumers are preferring products that address lifestyle related challenges such as dryness among frequently commuting men" as well.

Ms Bynagari also added that a health-focused shift towards natural ingredients "will steer future demand and innovation" in the Indonesian haircare market.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Meanwhile, convenience stores accounted for the lion's share of haircare product sales at 44 per cent, closely followed by supermarkets at 34.8 per cent. On the other hand, pharmacies, drugstores and health and beauty stores together distributed 13.9 per cent of products.

The GlobalData projections did not, however, take into account the impact of the ongoing novel coronavirus pandemic.