Unpacking the current formula:

To understand what’s next, we need to take a closer look at the forces that are still driving growth.

1. Online keeps momentum alive. Digital platforms continue to be a key channel for discovery, trial, and repeat purchase. As availability and variety expand online, e-commerce continues to play an increasingly influential role in shaping beauty habits.

However, if we look at offline channels, we see that more specialised health & beauty and cosmetic stores are also on the rise. Are your brands visible where beauty shoppers are shopping?

2. Young consumers become central. Indonesia’s younger generations, Gen Z in particular, are highly engaged in beauty. For them, it is not just about aesthetics, but also self-expression and identity. Growing up immersed in digital culture, these digital natives are constantly exposed to beauty content through social media, which leads to more discovery and their decision process.

Easily, this digital fluency carries over into how they shop. They are purchasing more via online and buy more categories digitally than in-store, purchasing approximately one additional category online. Their habits point to a future where long-term brand loyalty will be built online first.

Do you want to know how much of your digital exposure are translated into purchase?

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3. The top spenders drive premiumisation. Upper class consumers (SES AB) are leading both brand and segment expansion. They prefer modern and online stores, signalling a shift toward a premium, and curated experiences. Meanwhile, the middle class (SES C) is focused on maximising value, and balancing access to newer formats with budget constraints. Similarly, lower-income shoppers (SES DE) are just beginning to explore new beauty categories but remain highly price-conscious.

These variations reflect different levels of maturity and opportunity within each segment.