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2023 BEAUTY TRENDS

POLL Have you tried trendy beauty products in the past 2 months? If yes, what product is it?

Sunscreen
Hair Fragrance
Lip Care
Face Cushion
Eyebrow

1. Advanced benefits in basic skincare

In today's dynamic beauty landscape, Indonesian consumers are eagerly embracing advanced features that offer an efficient skincare experience. Previously, they favoured using serum with additional benefits. However, basic skincare is now providing products with advanced formulas, especially in natural cleansing, hydration, pore care, and exfoliation. This has resulted in an impressive value growth of over 20% compared to the previous year. Meanwhile, the basic skincare brands that have not developed their products have been left behind in terms of growth.

The fascination with the advanced formula of basic skincare perfectly matches the savvy demands of Indonesian beauty enthusiasts. With mobility making a swift comeback, people are yearning for extra cleansing and beautifully hydrated skin. Beauty players must ride this wave by offering products infused with cutting-edge ingredients.

2. More going out means more need for UV Sunscreen

The recent heatwave provided a valuable opportunity to educate beauty shoppers about the significance of Face Sunscreen in maintaining optimal skin health, as also advised by the government agency BMKG. As a result, Face Sunscreen now reigns as the fastest-growing beauty segment of the post-COVID-19 era. It has become a vital shield, defending consumers against exposure from the sun as they return to outdoor activities.

The surge in buyers this year has surpassed last year’s growth, and over the past three years the category has gained 2.8 million households in 2022 vs 2021 and 3.8 million households in 2023 vs 2022.

The category's allure is further amplified by the extensive range of formats available in the Indonesian beauty market, all of which are growing. From Gel/Cream and Mist, to Stick and Powder Sunscreen, consumers are presented with an abundance of options to suit their preferences and needs.

3. The comeback of Make Up

The end of mandatory mask-wearing in Indonesia had a significant impact on transforming make up trends. Over the past year, opportunities for brands have expanded, driven by Face Make Up which was sacrificed during the pandemic. The resumption of regular outdoor activities has resulted in a significant sales uplift, especially in the Cushion and Compact Powder segments which have increased in value by around 30%.

Eye & Lip Make Up products gained in popularity during the pandemic, as people focused on enhancing their eyes while wearing masks. Spend in these segments has continued to grow, reflecting consistent demand for these products regardless of mask usage.

4. The emerging Hair Fragrance trend

The return of mobility has given fragrance more opportunities to flourish. As people increase their outdoor activities, there is an emerging need for products that ‘freshen up’ hair. Within the hair treatment category, fragrance has become a leading segment in terms of growth, experiencing a triple digit rise compared to the ‘stay-at-home’ period. This is also driven by local independent brands offering a wide range of scents, along with smaller packs that make it convenient for buyers to use products on-the-go. They are also multifunction in usage, rather than limited to hair, which further adds to their appeal.

This trend is seen across cohorts, with spend growth highest among middle-class consumers. Its also interesting that the use of Hair Fragrance is across both Hijabi and non-Hijabi households

5. All-round availability

Beauty shoppers are becoming more explorative in their shopping destinations, and evidence for this can be seen in the rise of omnichannel buyers. Notably, the most significant growth in spend is observed among buyers who utilise three, four or more channels.

During the pandemic, online beauty shopping experienced substantial growth due to mobility restrictions. The channel managed to keep expanding as people went back to out of home activities, and grew by 56% in total spend in Q1 of 2023, year on year. However, online shopping is not replacing offline trade: physical channels have still been able to thrive and achieve 9% value growth.

This means that understanding the unique roles played by each channel has become crucial in developing a targeted buyer base. The pathway to growth lies in ensuring all-round availability – winning key channels while also keeping up with the emerging pockets of opportunity.