Throughout the years, the $500-billion beauty industry has shown extreme resilience, recording an average of 4.6% growth annually in the last decade. The Covid-19 pandemic however proved to be a harder hit to the industry, as the lockdown forced store closures around the world. This led to the shutdown of approximately 30% of the beauty market, which doesn’t come as a surprise considering that a majority of customers still prefers to purchase beauty products online, even those in the tech-savvy Gen Z and Millennials groups.

In this disruption, skincare, haircare, and bath and body products rose to become the new heroes of the beauty industry. Europe’s Zalando reported 300% increase of skin, nail, and haircare products, while Amazon reported 65% increase of bath and body products. 

In Indonesia, users of outdoor care such as sunscreen dropped by more than 13% during the pandemic. For skincare products such as serum, day and night cream, and eye cream, the decline is maintained below 10%. As the industry began to recover in 2021, it is further boosted by online sales, which is dominated by local brands. Local skincare products saw sales doubled in Q1 2021 and Tokopedia reported 60% sales increase in the skincare category, comprising face wash, serum, face mask, and moisturizer.  

One of the products that we have seen gaining popularity is serum. In June 2021, serum sales on the e-commerce platform Shopee reached IDR148.02 billion, driven by local brands. Local brands have become so popular as they offer cheaper options, which allow the Indonesian market to embrace these products that were previously considered premium. This is further boosted by beauty influencers, who have successfully made local brands go viral.

Bahtera as a specialty chemical distributor saw a 100% increase in active ingredient sales during the pandemic as a result of this growing interest in serum. Based on our observation, acne and brightening remain the most popular product segments, followed by moisturizing and anti-aging. 

As Indonesians look for the next big thing in the beauty industry, new trends will continue to emerge. Boosters, which offer more potency, will take the reign. Blue light protection will also dominate the market as Indonesians spend more time indoor and on their gadgets.

One thing is for certain: influencers and growing local brands will continue to drive trend in the Indonesian beauty industry moving forward. In recent years, local brands have played a key role in providing customers with more diverge options. And the number of local beauty brands in the country continues to grow rapidly. In 2018 alone, 760 local cosmetics brands emerged. The number is staggering compared to 153 new brands in 2017. 

Studies also show that 80% of global consumers make beauty-related purchases based on influencers’ recommendation. In Indonesia, beauty influencers contribute to the boom of Korean beauty products, influencing 39% of purchases. The combination of the two will encourage Indonesian customers to be bolder in exploring new beauty trends and trying on unique, innovative products.