JAKARTA – The Indonesian beauty care market is witnessing a surge in homegrown halal cosmetics brands, as they challenge the dominance of international giants like L’Oreal and Unilever. For Muslim consumers like Winny Triswandhani, the allure of brands like Esqa and Rose All Day Cosmetics (RADC) lies in their halal-certified products, which are produced in accordance with Islamic principles and are free from prohibited ingredients.
Esqa, owned by Keva Cosmetics International, has gained popularity for its high-quality, vegan makeup range that resonates well with the Indonesian climate and skin tone. Kezia Trihatmanto, co-founder of Esqa, explained that the demand for halal products in Indonesia has been on the rise, and the company responded to this by ensuring its products met halal compliance.
Rose All Day Cosmetics, founded in 2017, is also thriving in the market. Its halal-certified and vegan products have quadrupled the company’s revenue in 2022, and they are poised to achieve a six-fold increase in sales this year. Co-founder Tiffany Danielle mentioned the pride that consumers feel for local brands founded by locals and expressed aspirations to take their brand to the global stage.
In addition to startups, established players like Paragon Technology and Innovation are also entering the halal space with low-priced, halal-compliant cosmetics and skincare products.
While Western brands like Unilever, P&G, and L’Oreal continue to be popular among Indonesia’s wealthy consumers, their market shares have been shrinking due to the growing preference for local halal brands. According to Euromonitor International, Unilever held 22.5% of the Indonesian market in 2022, followed by P&G at 7.6% and L’Oreal at 5.4%, resulting in a combined share of 35.5%. In contrast, local players like Paragon Technology and Innovation have seen their market share rise from 1.9% in 2016 to 3.1% in 2022.
Indonesia implemented a law in 2014 mandating halal certification for various consumer products, including cosmetics, to be sold in the country. By 2026, halal certification will be a requirement for cosmetics, giving brands ample time to transition and cater to the growing demand for ethical and halal choices.
While some global companies are concerned about the cost of setting up dedicated halal production facilities, local brands have embraced the opportunity to cater to the diverse needs of Muslim consumers who seek both quality and adherence to their religious beliefs. As the market continues to evolve, Indonesian halal cosmetics brands are poised to make a significant impact on the global beauty industry.
