The leading data and analytics company, GlobalData, has discovered that the haircare market in Indonesia is forecast to grow from Rp17.3 trillion in 2019 to Rp25 trillion in 2024 with a compound annual growth rate (CAGR) of 7.7 percent.
GlobalData's report shows that the shampoo category led the sector with conditioner and hair colourants following close behind.
"Strong adherence to Islamic culture and practices, and growing inclination towards ethical consumption even in personal care products have paved way for the rise in the demand for halal-certified hair care products. Additionally, consumers are preferring products that address lifestyle-related challenges such as dryness among frequently commuting men,” said Susmitha Bynagari.
Convenience stores is the leading distribution channel in Indonesia for haircare products with a value share of 44 percent.
Brands like Unilever, Procter & Gamble and L'Oreal SA were at the top three spots in the Indonesian haircare sector.
“Due to strong religious beliefs, demand for ‘halal’ haircare products is on the rise and is becoming a mainstay. While this will remain pertinent and gain a foothold, growing acknowledgement of harmful effects of chemicals used in products and rising awareness of the benefits of natural ingredients will steer future demand and innovation.”