Rising domestic demand and exports are turning beauty, perfume and wellness into strategic growth pillars.
Indonesia is positioning its cosmetics, perfume and wellness sectors as key engines of industrial growth, backed by a young consumer base, expanding SMEs and improving export performance.
Cosmetics, Perfume And Wellness As Growth Pillars
Industry Minister Agus Gumiwang Kartasasmita said cosmetics, perfume and wellness products are becoming major contributors to national industrial growth. Speaking on Monday, he stressed that these sectors hold “significant potential” to become pillars of value-added industry. The government plans to support them through targeted policies, facilitation and ecosystem strengthening to build global competitiveness. A large, youthful population underpins robust long-term demand at home, while exports are starting to gain traction abroad.
Expanding SME Base In Beauty Sector
Data from the Food and Drug Monitoring Agency (BPOM) indicate Indonesia will have about 1,500 cosmetics businesses by 2025, more than 90 per cent of them small and medium enterprises (SMEs). This dense SME base makes the sector a strategic channel for inclusive industrial growth and job creation. Agus’ ministry sees SMEs as central to innovation and niche product development, from halal and natural formulations to locally branded skincare and fragrance lines tailored to Indonesian consumers.
Innovation, Standards And Modern Manufacturing
Director general for small, medium and miscellaneous industries Reni Yanita said SMEs must innovate, read market trends and comply with safety standards to compete. She pointed to modern facilities such as the Prioritas Wellness Indonesia plant in Tangerang, Banten, as benchmarks for SME-level production lines that meet national and international requirements. These examples show how smaller firms can leverage contract manufacturing, quality control and good manufacturing practices to scale beyond local markets.
Market Size, Growth And Export Performance
Reni noted that Indonesia’s cosmetics market value is projected to reach about US$9.74 billion in 2025, with annual growth estimated at 4.33 to 4.37 per cent. Export performance is also improving, rising from US$416,800 in 2024 to US$473,800 in 2025. While the absolute export figures are still modest, the upward trend suggests room for Indonesian brands to expand into regional and global markets. Strengthening domestic production capacity and consistent product quality will be essential to capture more value across the supply chain.
Building Global Competitiveness And Resilience
Officials say the combination of strong domestic demand, growing SME capacity and early export gains gives Indonesia a window to entrench itself in the global beauty and wellness value chain. Government support will focus on standards, innovation, branding and access to modern manufacturing, while encouraging private investment in R&D and marketing. For Indonesians and Singaporeans, the sector’s rise highlights new opportunities in contract manufacturing, ingredient sourcing, design, logistics and cross-border e-commerce, as well as the need for vigilant regulation to keep products safe and trusted.
Indonesia’s push to develop cosmetics, perfume and wellness into core industrial pillars reflects a broader shift toward higher value-added, brand-driven manufacturing. For Indonesians, this offers pathways for SMEs and workers to move up the value chain, while for Singaporeans it opens space for collaboration in technology, testing, packaging and regional distribution as Southeast Asia’s beauty market matures and globalises.
Sources: EN Antara (2026) , Vietnam Plus (2026)
Keywords: Agus Gumiwang Kartasasmita, Reni Yanita, BPOM Data 2025, Prioritas Wellness Indonesia, Cosmetics Market Value, SME Innovation
