Cosmetics and Cleansing Material Business Delegation, 26-30 November 2018

05/04/2018 Latest News

The initiation of the business is, in particular, to address small and medium-sized enterprises (SMEs), the self-employed in the commercial sector and business-related service providers in Germany from the cosmetics, cleaning and home care business sectors in order to facilitate their entry into the growth market of Indonesia.

The joy of consumption of the Indonesian population is immense. Household incomes are steadily rising, with almost 60 % GDP coming from private consumption. This also benefits the Indonesian cosmetics industry. Based on data from the Beauty Market Survey (BMS) by Nielsen and Euro Monitor, the value of the Indonesian cosmetics industry in 2016 was estimated at $ 36 trillion (approximately $ 2.7 billion), an increase of 12 % over the previous year equivalent. Cosmetic products are expected to grow at an annual rate of 8.5 % by 2021. The positive outlook for the Indonesian cosmetics industry has led to more and more local brands entering the market, resulting in a much tougher competitive landscape. Nevertheless, the market is dominated by international brands, with importing goods playing a key role.

A survey of Indonesian consumers carried out by Deloitte has shown that as income increases, so too does the interest in international brands of detergents. The main target groups are urban centers, where economic growth is highest. Although detergents and soaps are also produced locally, in 2016 detergents worth $ 250 million were imported. German chemical companies are successfully producing precursors for personal care and cleaning products in Indonesia.

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