JAKARTA, Indonesia, Feb. 19, 2019 /PRNewswire/ -- Data shows that consumer demand for beauty and cosmetic products, as well as medicine and healthcare products, is on the rise in Indonesia. The country, which currently has a population of 264 million, is the fourth most populous country in the world, trailing just behind the US, India, and China.
With such a huge population, the market presents exciting opportunities for global businesses, particularly those in the beauty and cosmetics industry, which is in the midst of a period of rapid growth.
Annual revenue in the cosmetics and personal care market is currently at around US$4,390m, but this figure is expected to grow by around 4.2% annually between now and 2023, but what market factors are fuelling this growth?
Experts believe that one of the driving factors is a growing number of consumers in the middle-income range. Indonesia is also classed as one of the global 'emerging market economies' due to growth in wages, and between 12 and 15% of the population are now estimated to be in either the middle or high-income range.
With a growing number of people with more disposable income, more people are willing to spend on high-end and luxury cosmetics, as well as on personal healthcare products. This increase in disposable income is evidenced elsewhere too, such as in the rapid growth in shopping malls. In Jakarta, the last decade has seen more than 100 shopping centers open up.
Another driving factor may be a younger population. The average population age in Indonesia is approximately 30.2 years, compared to 38.1 years in the US. Expectedly, this younger population exhibits different consumer habits than older generations.
For example, some experts have suggested that the younger population means that Indonesia's consumer market is more responsive to digital and social media marketing, and more prone to shopping online. It may be down to this that online cosmetics and pharmaceuticals stores like Farmaku have seen such success.
Farmaku sells cosmetics like makeup and skin care products through their eCommerce store. They also sell various health care products, such as food supplements, cough medicine, and other similar products.
Some have suggested that the younger generation may also be more concerned about their own physical health, citing the popularity of vegan and organic foods amongst millennials as an indication of this. This generation of health-aware consumers may also be contributing to the higher demand for personal healthcare products in Indonesia.
Other big-name companies in the global cosmetics and healthcare market, such as L'Oreal, are hoping to take advantage of this. They have identified Indonesia as one of their major target markets, and consider social media websites to be one of their most important marketing channels.
Contact: Farmaku, 0812 1600 1600, firstname.lastname@example.org