Behind VC's Investment on Local Cosmetics and Beauty Tech Startups
Investments can be used to drive business scalability and understand consumer needs through technology
The rise of the beauty and personal care industry in Indonesia was marked by the birth of many new local brands. The government recorded 797 large to small and medium industry (IKM) cosmetic business players in Indonesia in 2019, of which 294 were registered with the Investment Coordinating Board (BKPM). This number is increased from the previous year which was 760.
Quoting Tempo, Social Bella's CEO, John Marco Rasjid said he was optimistic about the rapid growth of the Indonesian beauty industry market. There are some factors behind the act. First, citing the Euromonitor report, the Indonesian beauty and personal care market is estimated to reach $6.03 billion in 2019 and increase to $8.46 billion in 2022.
Second, as John stated, the total average expenditure for beauty products for Indonesian consumers is around $20 per capita. The number is smaller than Thailand ($56 per capita) and Malaysia ($75 per capita). Third, Indonesia has a very large female population. Bappenas estimates that the total female population will increase to 142 million from the population in 2010 of 118.66 million.
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