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Indonesia’s cosmetic industry is experiencing a dynamic transformation, evolving into a thriving market brimming with potential. Over recent years, a new wave of local makeup brands has emerged, captivating consumers with innovative products, authentic storytelling, and a deep understanding of regional beauty needs. These brands, once focused on the domestic market, are now gaining significant traction both at home and on the global stage.
With a growing reputation for quality, innovation, and cultural relevance, the time is now for Indonesian makeup brands to expand their horizons and tap into the international market.
Indonesia, as Southeast Asia’s most populous nation with over 270 million people, represents a significant and growing market for beauty products. Its revenue reached a substantial US$7.23 billion in 2022, with a projected annual growth rate of 5.81% through 2027 (CAGR)1. These data and forecasts show a significant increase in market size, driven by the expansion of the middle class and young, digitally-savvy population, and rising disposable incomes.
Indonesian women are increasingly drawn to natural formulations, with a significant 75% preferring products made with natural ingredients across all major cosmetic categories, such as hair, skin, and hygiene2. Moreover, modern consumers are increasingly seeking products that are ethically sourced, inclusive, and halal certified.
Additionally, there is a strong demand for products that cater to a wide range of skin tones and types, moving away from a one-size-fits-all approach. Social media and local influencers have played a crucial role in this evolution, creating a powerful platform for local brands to connect directly with their audience, build communities, and drive sales.
Local makeup brands are not simply following global trends; they're setting their own, driven by a unique blend of local innovation and cultural relevance.
Indonesian brands have a distinct advantage in their use of local ingredients. As such, the country possesses a wealth of natural cosmetic ingredients sourced from its diverse flora, fauna, and mineral deposits.
One of them is Frangipani flowers, which are often utilized as cosmetic ingredients due to their substances that can inhibit acne growth and contribute to smoother-looking skin3. Rich in antioxidants and soothing compounds, they can help reduce acne, calm irritation, and improve skin’s overall smoothness. Their hydrating properties also make them a favourite in anti-aging and aromatherapy products.
Furthermore, the government is actively working to develop the domestic cosmetics industry by collaborating with academics and businesses to utilize local ingredients4.
Indonesia’s position in the global Islamic economy has been on a strong upward trajectory, demonstrating its growing influence and expertise. Aside from ranking third in the Global Islamic Economy Indicator (GIEI), the country holds the fifth-place ranking in halal pharmaceuticals and cosmetics5. And in 2022, the country's national halal cosmetics industry reached a market value of a significant US$4.19 billion6.
Moreover, the nation's government further reinforced its commitment to the halal industry with Government Regulation Number 42 of 2024 (GR 42/2024), which updates the previous GR 39 of 20217. This regulation mandates that all goods and services entering, circulating, and being traded within Indonesia must be halal-certified, a requirement that also covers makeup and other cosmetic products8.
GR 42/2024 also introduces several new provisions to help streamline the certification process. These include adjustments to the validity period of halal certificates, a clearer framework for recognizing foreign halal certifications, and a better definition of the obligations for both businesses and Halal Inspection Agencies9.
The global market for halal cosmetics is experiencing remarkable growth, presenting a significant opportunity for Indonesian beauty businesses with a strategic approach to market expansion. Valued at US$69 billion in 2024, this market is projected to reach an impressive US$152.3 billion by 203010.
For local businesses looking to expand their beauty brand, looking at key markets for expansion is the first step.
The nearest expansion opportunity is within Southeast Asia. This region shares cultural ties and similar skin tones and climates, which makes Indonesian beauty products a natural fit. High mobile penetration and the rapid growth of e-commerce make it easy for brands to reach consumers directly. There is also a strong, pre-existing demand for halal-certified, affordable beauty products, and gentle formulations suited to humid climates, creating a receptive market even in non-predominant Muslim countries like Vietnam11.
Where many countries have a Muslim majority, the Middle East represents a major growth market for local Indonesian beauty brands. Halal beauty is a significant trend here, and consumers are actively seeking products that align with their values. There is strong demand for natural and modest beauty products, and the shared religious values create a natural bridge for building brand trust and consumer loyalty.
In Europe and North America12, the concept of halal beauty is resonating with a broader audience, including those who prefer vegan, cruelty-free, and clean beauty products. The ethical and safety standards of halal certification appeal to consumers who are cautious about synthetic additives and harsh chemicals in conventional cosmetics.
This trend is also particularly noticeable in the UK and France13, which have shown a high volume of online searches for halal beauty. This heightened interest is linked to a growing Muslim population and a broader consumer awareness of halal-compliant ingredients, positioning these markets as key destinations for Indonesian brands.
Expanding globally, however, is not without its challenges. The Indonesian cosmetic market is a strong domestic base, but international markets bring their own complexities. Businesses face intense competition from established global brands with massive marketing budgets and extensive distribution networks.
Meanwhile, navigating the diverse and often stringent regulatory requirements in different markets is another hurdle. For instance, complying with the Food and Drug Administration (FDA) in the US and the EU Cosmetics Regulation requires meticulous preparation and investment.
Scaling production to meet international demand while maintaining product quality and brand identity can be difficult, and building brand recognition and trust from a distance requires a well-executed strategy.
Overcoming the challenges mentioned earlier requires a strategic and proactive approach.
For Indonesian cosmetic brands with global ambitions, a strong logistics partner is essential. At DHL Express, we are experts in helping businesses navigate the complexities of international trade. We offer fast, reliable shipping to more than 220 countries and territories, ensuring your products arrive promptly and safely.
Our expertise in importing and exporting in Indonesia and maintaining halal integrity through specialized logistics solutions means we can provide streamlined customs clearance for cosmetics and personal care items, helping you avoid delays and ensure regulatory compliance in your target markets. Plus, our door-to-door convenience and proactive tracking support give you and your customers peace of mind throughout the entire process.
Open a business account today with DHL Express and get access to business solutions tailored specifically for businesses in the beauty industry, providing the support and resources you need to scale your operations confidently.
1 - Cosmobeauté Indonesia 2023. October 2023.
2 - Business-Indonesia.
5 - Jakarta Globe. 28 February 2025.
6 - ASEAN Briefing. 5 January 2024.
7 - Halal Product Assurance Agency. 15 May 2025.
8 - Halal Product Assurance Agency. 15 May 2025.
9 - ASEAN Briefing. 29 October 2024.
10 - Research and Markets. August 2025.
11 - International Journal of Halal Industry. 2025.
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