Indonesia's Cosmetic Export Reaches Nearly $1 Billion in H1 2025 – What's Driving the Growth?

Export Growth Surpasses Expectations

The real spotlight, however, is on the export performance. In 2024, Indonesia's cosmetic exports reached USD 800 million, marking an increase from USD 670 million in 2023. Impressively, within just the first half of 2025, the number has soared to USD 978 million, nearly breaking the USD 1 billion milestone.

This growth is largely attributed to rising demand from regional markets, particularly Malaysia, the Philippines, the UAE, Japan, and South Korea. These countries are showing strong interest in Indonesian beauty products, especially those emphasizing halal certification and the use of local ingredients.

🚿 What’s Being Exported?

In terms of volume, the leading export product remains solid soap, while essential oils top the chart when it comes to export value. Indonesia’s natural richness and cultural alignment with halal and wellness-based products offer a competitive edge in international markets.

⚠️ But Challenges Remain

Despite this momentum, there are structural challenges hindering the industry's full potential. One of the most pressing issues is the heavy reliance on imported raw materials—up to 90% of cosmetic ingredients are still sourced from abroad. These imports often come with import duties, increasing production costs.

Ironically, finished cosmetic goods from countries with Free Trade Agreements (FTA) can enter Indonesia without any import tax, placing domestic manufacturers at a disadvantage.

🧩 A Call for Stronger Ecosystem Support

Industry experts also point out that Indonesia’s cosmetic industry lacks a comprehensive ecosystem. While factories are being built, critical components such as research and development, education, supply chain infrastructure, and global marketing efforts are often neglected.

✅ Final Thought

With regional demand on the rise and nearly USD 1 billion in export revenue already recorded in the first half of 2025, the opportunity for Indonesia's beauty industry is clear. But unlocking its full potential will require more than factory floors—it needs investment in the entire value chain, from labs to logistics.

Satra Sinar Abadi Group

🌸 A Steady Climb in the Beauty Sector

The Indonesian cosmetics industry continues to show promising signs of growth in 2025, maintaining a stable expansion rate of around 5.3% to 5.7%, according to recent data. Although it has yet to hit the double-digit growth many stakeholders had hoped for, the current performance still reflects a healthy trajectory.