Does anyone remember Procter & Gamble’s Reflect?  A 6 year (1999 – 2005), $80 million experiment that provided customized make-up, skincare, haircare and perfume to its customers.  The products were shipped to consumers within 5 days after creation. (Marketing Week) After the company was closed, P&G said it had been an exploratory project to gain insights into consumer preferences. Were they ahead of their time?  Or is customization too challenging to turn a profit?

Let’s take a look at some of the brands that have moved into the customization space since then.

Launched in 2015, Function of Beauty celebrates the consumer with tailor-made, naturally-derived hair care formulas, crafted by in-house chemists and beauty experts. Since launch, they created over 15 million unique, customized products with the capability of creating a unique formula every 15 seconds. This customization includes fragrance, color, size and bottle type. Formulations can change as needs change. “Give us two minutes of your time and we’ll formulate a unique haircare regimen customized just for you.”

Prose launched in 2018 with an AI-powered algorithm to personalize skincare and haircare products and routine, carefully selecting from 185+ clean ingredients. Because every person is one of a kind, Prose is replacing mass-produced with made to order — for truly personalized products and custom care for unique hair and skin needs. As consumer requirements change, Prose will modify the custom formulas accordingly. Building progress into every formula, designed to evolve over time, products are freshly bottled in their Brooklyn factory and customized to the consumer’s life style, zip code and the changing seasons.

Pure Beauty Culture launched in 2020 via an at-home skin test and questionnaire. The company creates custom formulas that consider everything from the consumer’s diet and environment to their genes and skin priorities. They strive to make it easy to build a routine that fits each consumer’s unique lifestyle. They flipped the industry’s standard approach. Instead of starting with a one-size-fits-all product, they start with each client. “You’re more than just your skin type.”

Finnish Tech company Revieve launched in 2022. The company’s proprietary technology is their digital health-beauty-wellness platform, which features easy-to-use self-diagnostic modules. They can personalize search and shopping experiences to deliver targeted products, services and treatments to their clients. Their true-to-life AI and AR try-on platform proves “Beauty is Personal. Unleash the Power to Be Unique.”

Strands is a science-driven, premium, direct-to-consumer brand that launched in 2020, using results of scalp and hair testing to individualize haircare. The Hair Lab, a mass-market offshoot, entered Walmart in 2022. Their latest offspring, The Body Lab, launching shortly in Walmart, is anticipated to do $10 million in their first year.

Thinking through the category of customization on a broader scope brings me to Starbucks. With more than 170,000 ways to customize beverages at Starbucks stores, customers can create a favorite drink that fits their lifestyle. The concept of the “IKEA effect” refers to the psychological phenomenon where individuals place a higher value on products they have partially created or customized themselves. Starbucks expertly capitalizes on this effect by involving customers in the creation process of their drinks. By allowing patrons to customize their beverages down to the smallest detail, Starbucks taps into the innate human desire for autonomy and self-expression. As a result, customers feel a deeper connection to their Starbucks drinks, elevating their perceived value and fostering brand loyalty. By embracing customization as a cornerstone of its brand identity, Starbucks has transformed the coffee-drinking experience into a deeply personal and gratifying ritual for millions of people worldwide.

Back to beauty:

Estimates are all over the board, but the most mentioned number of beauty brands in the United States is about 4300.  I think that’s low…none the less, it’s hard for me to imagine there isn’t already a product on the shelf for every need and preference. Fenty has made 50 foundation shades table stakes!!

Can customization scale, make money, be efficient?  From my perspective, it remains to be seen.  Starbucks, claiming 170,000 variations of their drinks, made customization their mantra.  As we all know, they are now having their own set of issues and one of them is the amount of time baristas spend customizing consumer orders.

Technology is certainly a key element in the future and success of this progression.  Consumers believe customization is critical.  I’ve seen many failed attempts.  More to come for sure.  I can’t wait to see where we’ll be in another 5 years!!

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Trends in men’s cosmetics are fascinating and always represent inspiration and a great opportunity for innovation. New male consumers are challenging gender stereotypes in various ways, such as self-expression, through which modern men seek to express their individuality and personal style through cosmetics, challenging traditional norms of masculinity and through empowerment because the using beauty products becomes a way to feel more confident in themselves.

Another driver that is driving change is the search for well-being and personal care. Now more than ever, many men are concerned about taking care of their skin, looking for products that hydrate, protect and combat the signs of aging. Even sports performance becomes more relevant, as we see an increase in products designed to improve sports performance and muscle recovery, which attracts a male audience interested in fitness.

On the other hand, there is great support from social networks and influencers, since they offer a large amount of content about products and routines, which has allowed the creation of various online communities, so that men can easily connect with other people who share their interests, problems and can find advice and recommendations that encourage the purchase and trial of products of various kinds.

The opportunity to develop disruptive solutions is enormous. The global market for this category was worth close to USD 58 billion in 2023, has a projection of USD 61.6 billion by 2024 and an estimated value of USD 85.5 billion by 2032, with a projected CAGR of 4.18% in this period. A recent post indicates that the hashtag #mensskincare had 1.9 million views on TikTok. Next, we will see some of the new trends in men’s grooming, which will direct innovation in our industry.

Courageous make-up: Beyond concealers and foundations, some men are experimenting with eyeshadows, eyeliners and blushes with bold colors and shiny finishes, for example, those indicated by the Eye Candy trend. Traditionally, men’s makeup has been used as a form of self-expression, now it is entering a whole new phase. A recent publication in Forbes magazine indicates that the new makeup is being designed for men and by men. This market expanded with a CAGR of 8.7% between 2018 and 2022 and is expected to progress at a CAGR of 9.4% between 2023 and 2033. Within the new concepts we see naturalness, defined eyebrows, hydrated lips, outlined subtle and strategic illuminators. The special effects are presented as a disruption, as we see effects such as fake scars, wounds or even complete transformations. This category is also taking inspiration from subcultures such as Punk, Gothic, Cyberpunk and Kawaii.

The Washington Post recently published an interesting article on color theory for male politicians. It indicates that makeup conveys the way politicians see themselves, or how they want others to see them. This publication discusses how different politicians had makeup advisors to mattify the forehead, correctly apply touches of concealer to the eye bags, and perfecting products to the complexion to capture the light precisely. If time permitted, their faces were even “prepped” with a tinted moisturizer or a darker foundation to make them stand out on the screen. The new influencers and ambassadors of cosmetic brands will be politicians! Interesting for cosmetic companies to build new positionings and concepts.

Extreme body care: Beyond moisturizers, some men are opting for body treatments like seaweed wraps, body masks, or even foot spa treatments.

Artistic hair removal: Hair removal of certain areas of the body, such as the chest or abdomen, including specific shapes or designs, is gaining ground among those seeking a more defined look.

Curly revolution: In recent years we have seen how curly hair has established itself as a category in women’s hair cosmetics. Now it’s the men’s turn. In men’s hair we see that no two curl patterns are the same and brands are starting to address issues such as differences in hair strand density and curl patterns. Men can now differentiate whether they have straight, wavy, curly, kinky or coily hair. For this reason, in the market we are seeing a boom in curl creams for men, leave-in conditioners for curls, curl balm, anti-frizz protector for curls and specialized masks, among others. Curls in men’s hair can be fine, thick, coarse and very abundant. At a scientific level, we began to see publications at fairs and conferences on the biochemistry of men’s hair cosmetics and new technologies to innovate in this market segment. Curly routine is the new fashion shout in men’s hair cosmetics. On YouTube and TikTok we see a boom of proposals and recommendations in this category.

Temporary tattoos with makeup: Using waterproof makeup to create temporary tattoos on the skin, whether on the face or body, is a trend that allow to experiment with designs without commitment.

Makeup inspired by anime or video game characters: Men are recreating the looks of their favorite characters, using vibrant colors, extravagant eyeliner and special contact lenses.

Mentinol (Men + retinol): Retinol is now beginning to take center stage in men’s skincare. We are seeing brands begin to educate the male consumer about the benefits and risks of different types of retinols.

Intimen: Male intimate hygiene products are gaining more relevance due to physiological differences between sexes. Scientific literature indicates that in women the pH of the vulva is between 3.5 and 4.7, while in men the pH of the genital area is between 5 and 5.5. This opens the door to new products specialized in male intimate hygiene that seek to prevent bad odors and the proliferation of bacteria and fungi, while providing a gentle cleansing, with a moisturizing and soothing sensation. Taking care of the intimate microbiome also presents itself as an opportunity.

In summary, we can say that the new consumers of men’s cosmetics are men who seek to express themselves (through their appearance and personal style), take care of themselves (both physically and mentally), connect (with other men and with the beauty community in general) and consume responsibly (choosing natural and effective products from ethical brands).

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With its sprawling archipelago of over 17,000 islands, not only is Indonesia a diverse tapestry of cultures but it is also home to a dynamic demographic landscape.

Boasting a population surpassing 270 million, Indonesia stands as the fourth most populous nation in the world, representing about 3.45% of the global total.

According to UNICEF, children make up a full third of Indonesia’s population, totalling approximately 80 million individuals, which also positions Indonesia as the world’s fourth-largest child population.

As such, Indonesia consistently witnesses a growing demand for mom and baby care products across the archipelago. Indonesia’s demographic prominence underscores its significant role on the world stage and the saturation of its baby and child market presents a ripe opportunity for mom and baby care businesses in the country.

Mom and Baby Products Generates Money

In 2023, Indonesia’s Baby & Child market exhibited noteworthy dynamics, generating a substantial revenue of US$88.11 million.

Projections suggest a promising trajectory with an anticipated annual growth rate of 4.58% (CAGR 2023-2028), reflecting a robust and expanding market.

While Indonesia’s market holds its ground, a global comparison points to China’s dominance as it leads with a staggering revenue of US$623 million in the same year. On a per-person basis, Indonesia contributed US$0.32 to this market in 2023, signifying a measurable economic impact.

This financial landscape is not only driven by conventional products but also influenced by evolving consumer preferences.

Notably, there is a discernible surge in the demand for organic baby food products within Indonesia, propelled by a rising tide of health-consciousness among parents.

This trend aligns with the broader global shift toward organic and sustainable choices, shaping the landscape of the Baby & Child market in Indonesia and highlighting the changing preferences of the nation’s parents, as reported by statista.com.

As parental consciousness regarding health and hygiene continues to grow, the Indonesian market presents significant opportunities for imported baby products.

The period spanning 2014 to 2018 witnessed an impressive annual increase of 8% in the retail sales of baby and maternity products.

Fuelled by a rising purchasing power, the trajectory suggests a promising outlook for Indonesia’s baby and maternity market in the years to come.

Mom and Baby Care Now

As Indonesia experiences a steady increase in childbirth rates, the landscape of baby care products has transformed into a captivating arena for both well-established and emerging brands alike.

Within this dynamic market, baby lotion cream reigns supreme, accounting for a commanding 39.4% share, closely followed by baby soap and telon oil.

Leading the charge are globally recognized brands such as Zwitsal, Johnson & Johnson, Mitu, and Buds, all making significant strides in Indonesia’s domestic baby care sector.

Yet, it’s not just the international players shaping the market; local Indonesian brands like Bambi, Cussons Baby, Moell, and Gently have emerged as pivotal contributors, each offering their unique touch to meet the diverse needs of parents.

Adding to the vibrant mix, local favourites like My Baby Telon Oil Plus Eucalyptus Longer Protection, MS Glow Kids Daily Baby Cream, and Lactacyd Baby Gentle Care have garnered considerable attention and loyalty.

As one of the OEM manufacturers in Indonesia, PT. Etercon Pharma, plays a significant role by producing mom and baby care products under the brand name Pure Baby. These companies, alongside the global players, have earned recognition for their extensive experience in catering to mothers, providing a diverse range of baby care products tailored to various needs.

According to a survey conducted by JakPat (focusing on Indonesian consumers) on 12 September 2022, Cussons Baby has emerged as the favourite baby care brand, securing a remarkable 40.6% approval from 910 respondents.

Following closely is Zwitsal, chosen by 36.7% of respondents, trailed by My Baby and Johnson’s. This data emphasizes the strong brand loyalty and consumer trust that these established names, both global and local, command in the Indonesian market.

Mom and Baby Demand Now

The Baby & Child segment includes products designed for the young and for the protection of their skin. These incorporate baby lotion, baby oil, baby powder and sunscreen for babies and children. Excluded are skincare products for adults, e.g. sunscreen.

In Indonesia, an increasing number of mothers exhibit a willingness to overlook higher prices when purchasing baby care products for their children. They prioritize the well-being and comfort of their little ones over cost considerations, seeking high-quality products that meet the highest safety and health standards.

This phenomenon illustrates parents’ commitment to providing the best for their precious ones, regardless of the potentially higher costs associated with premium baby care items.

Such an attitude reflects shifting values and priorities among modern mothers who go for quality and innovation in caring for their children, contributing to the growth of the baby care product market in Indonesia.

Indonesian mothers are increasingly discerning when it comes to selecting baby care products, emphasizing a strong preference for natural, eco-friendly, and ethically sourced options.

The demand extends to products that undergo dermatological testing, ensuring safety for delicate infant skin. Additionally, the surge in awareness about environmental impact has led to a growing inclination towards vegan and cruelty-free products among Indonesian moms.

These conscientious choices align with a cultural ethos that values harmony with nature and a commitment to ethical practices.

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The cosmetics industry, a realm of rapid change and constant innovation, poses unique challenges to product development. In this dynamic sector, the success of New Product Development (NPD) hinges on the crucial collaboration between Research & Development (R&D) and Marketing teams.

To develop successful cosmetic products, the R&D and marketing teams must collaborate closely. R&D should stay updated on market trends and identify gaps, while marketing should understand consumer needs to devise effective marketing strategies.

Misunderstandings can arise, but recognizing and empathizing with challenges can foster a more collaborative work environment.

Real-Time Example: Enhancing Collaboration through Strategic Project Management

From personal experience, I’ve witnessed first hand the challenges that can emerge between R&D and marketing teams within the FMCG sector. In my first job at a company renowned for its sizeable R&D team and comparatively more minor marketing team, the expectation discrepancy regarding sample production times was a persistent issue.

Despite the R&D team’s efforts in juggling multiple projects and incorporating feedback into sample remakes, our marketing colleagues often underestimated the time required for these adjustments, leading to tensions regarding perceived performance delays.

This experience underscored a common misunderstanding: the marketing team’s expectation for swift sample turnaround times, not recognise the intricate process of remaking samples in response to feedback, which naturally extends timelines. Our R&D team was stretched thin, working on numerous projects simultaneously, each demanding considerable time and resources to adapt and refine based on ongoing feedback.

To address this gap in understanding and expectations, we initiated a brainstorming session dedicated to improving our collaborative process. The outcome was developing a project management system meticulously crafted within Excel and a detailed project briefing form for marketing to initiate projects.

This system allowed for a clear assignment of projects to specific team leaders, fostering a better understanding among all team members about the complexities involved in altering formulations and the reasons behind priority shifts.

What about the marketing side?

It is so easy for both sides to think about it. Oh, their job is so easy, but to make it fair, I have asked the New Zealand brand’s VP of marketing their pain point. He pointed out the challenges of translating market trends into actionable R&D outputs.

For example, while appealing from a marketing perspective, the concept of personalisation often poses significant challenges for R&D regarding feasibility and implementation. It also highlighted the importance of including R&D insights early in the post-market research process to ensure that the development strategies are both innovative and practical. This approach helps align expectations and integrate technical feasibility with market-driven innovation from the onset.

How does it work in contract manufacturing?

When it comes to contract manufacturing, the manufacturer must be well-equipped in research, development, and market trends. This means they must possess the knowledge and skills to embody the brand’s vision and understand the target market. They need to understand the market trends, consumer preferences, and product specifications to deliver a final product that meets the client’s expectations.

Furthermore, the manufacturer must be a trend follower, staying up-to-date with the latest industry trends, innovations, and technologies. They need to be able to adapt to the rapidly evolving market landscape and incorporate the latest technologies and innovations into their production processes.

What else can be done to improve the gap between R&D and Marketing?

Collaborative learning can also enhance R&D and Marketing synergy. Joint attendance at distributor presentations or industry events can spark innovative ideas, helping both teams understand how new ingredients or technologies can be leveraged. Following such events, brainstorming sessions can translate these insights into actionable projects that align with brand identity and market needs.

In conclusion, successful cosmetic product development requires collaboration between R&D and Marketing. A solid project management foundation can align the efforts of both teams, ensuring that each step of the NPD process is informed by both technical innovation and market insights. This streamlines the development process and enhances the potential for creating products that truly resonate with consumers.

By bridging the gap between R&D and Marketing, brands can create products that captivate and satisfy consumer desires with R&D focused on technical feasibility and innovation and Marketing on trends, consumer needs, and communication. However, both teams have goals to deliver compelling products that meet market demands.

Merve Samur will be speaking about this very topic during a Marketing Trends presentation at in-cosmetics Asia 2024 in Bangkok. Register your interest to visit now.  

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As we explore haircare in the Asia Pacific region, our Indonesia expert puts the spotlight on Indonesia…

Indonesia Outlook for Haircare

As a science that studies how to care for hair and scalp, to choose cosmetics according to hair type, climate and treatment techniques, the sector’s beauty experts recommend ways to treat hair, which are grouped into (1) daily haircare by washing hair using shampoo, conditioner, and dry treatment, (2) periodic care with cream baths and masks, (3) Special treatment for hair after straightening (keratin).

In response to hair problems and current trends, Indonesian salon services are proliferating and focusing, starting from basic treatments such as haircuts, cream baths, hair masks, and hair colouring to straightening and extensions.

The increasing variety of salon services and professional products for haircare in Indonesia is predicted to drive the market until 2028. However, the high price of services and haircare products is a major issue in this industry.

As is the case globally, more and more Indonesian consumers are learning how to take care of their hair with online tutorials and the help of influencers. Google noted a surge in searches for haircare activities throughout 2022.

‘Dry hair’ ranks first with an increase of up to 70% vs last year on YouTube. Second, you’ll find ‘dandruff’ with a 60% increase on YouTube, too followed by ‘hair spray’ (+20% year on year) on Google. Fourth was keratin with a 20% rise on Google.

Haircare Search Trends on Google and YouTube to Rise in 2022, What to Look Out for? (Katadata, 2022)

2023 Haircare Developments in Indonesia

 The Indonesian haircare market is experiencing remarkable growth, a phenomenon driven by increasing consumer awareness and spending on personal grooming products.

Rising significantly is the number of haircare products ranging from traditional herbal-based treatments to more technologically advanced products. Examples range from old school aloe vera plant to get its benefit but nowadays consumers tend to look for some technology including encapsulated aloe vera.

In general, consumers in Indonesia are more ingredient-aware and are seeking organic alternatives. Companies are responding by launching new product lines made from natural ingredients which include aloe vera, coconut oil, and other plant-based ingredients.

A company that tends to launch new products using natural ingredients is PT. Gondowangi Traditional Kosmetika, who are famous for their natural haircare products.

Source: https://gondowangi.com/natur/

As technology improves, many brands are offering personalized haircare solutions based on a customer’s specific hair type and requirements such as dandruff solutions due to scalp irritation. This allows customers to find the right products that work best for their hair and leads to customer satisfaction.

The online retail market in Indonesia is growing rapidly. According to McKinsey, in 2021, it became the ninth-largest e-commerce sector in the world, valued at $43 billion,  with many brands capitalising on the trend.

Companies operating in the Indonesia haircare industry are investing more in research and development to create innovative products that meet the evolving choices of consumers such as anti-pollution product for hair, scalp special treatment for man etc.

This includes the development of new ingredients such as frangipani flower extract, mangosteen extract and even vitamin C, ceramide and technology to make haircare products more effective.

With a growing population, many haircare brands are expanding their operations into rural areas in Indonesia to reach a wide customer base.

According to Statista Market Forecast1, the revenue in the haircare market in Indonesia amounts to US$1bn in 2023 and is expected to grow annually by 4.10% (CAGR 2023-2028).

Increasing product awareness, financial independence among female consumers, and considerable attention to male grooming are the main drivers of this expected growth because of the male population’s concern about  their appearance and interest in cosmetics.

In addition to that, digital penetration (currently standing at 73.7% in Indonesia) has also increased rapidly, which in turn improves the e-commerce infrastructure, making haircare products more accessible to consumers.

The following are leading haircare companies in Indonesia with the most sales both in the marketplace and e-commerce:

L’Oréal

Present in Indonesia since 1979, the French behemoth has always demonstrated its commitment to the growth of the beauty industry focused on innovation, digitalization, education, and human resources. Based on the report from the Databooks Katadata official website, L’Oréal saw revenues of US$ 40,310 billion in 2022.

Source: https://www.loreal-paris.co.id/elviverecycle

Makarizo

This brand claims it can overcome various kinds of hair problems almost as a “trend centre” for haircare products. The future looks bright for Makarizo with more intensive promotions and additional product innovations tailored to the market such as natural based ingredients, digital trending and hair treatment tutorials.

Source: https://akashainternational.com/id_ID/makarizo-hair-energy/

Pantene

Pantene has been around for decades and it dominates the Indonesian market and is produced by PT P&G Indonesia, which has been marketed in Europe since 1947. Since its first marketed product, Pantene has continued to innovate to meet its customers’ needs and wants, especially those related to haircare.

As reported on the Compas official website in 2022, Pantene was ranked third as the best-selling shampoo product brand in Indonesia during the second quarter of 2022, and there were approximately 32.3 thousand transactions of Pantene products in one quarter only from its sales at

Source: https://www.pantene.co.id/id-id/produk-toko/rangkaian-produk/total-damage-care

Haircare Opportunities in Indonesia

Hair Growth Treatment

In Indonesia, where beauty and personal care are highly valued, hair growth treatments will always be a popular claim sought by consumers, including combating hair thinning and promoting hair regrowth and proven effective.

Numerous brands offer shampoos and hair tonic infused with essential oils, vitamins, or natural extracts that claim to promote hair growth and reduce hair loss.

Source: Miranda Hair Growth Formula Shampoo, with Sunflower oil and biotin to help hair growth and reduce hair loss

Gently Hair Serum is infused with candlenut oil and ginseng extract, which are known to nourish and thicken the hair, stimulate hair growth, increase hair density, promote healthy and non-dry hair, and strengthen hair roots and strands.

It is formulated specially for baby and kids.

ERHAIR Hairgrow Serum is a hair serum that tackles hair loss and helps stimulate new hair growth by using its Kopexil and Panax Ginseng extracts.

These work together to reduce hair loss and promote hair regeneration by improving blood circulation and nourishing the hair.

Hair Straightening

Indonesia is one of the most ethnically diverse societies on earth as it consists of 1,300 ethnic groups, each having distinct hair types. As a result, hair types in Indonesia can vary widely, however wavy and curly hair are the most common hair types in Indonesia.

Therefore, the pursuit of sleek and straight hair has led to a surge in the popularity of hair straightener treatment products within the country. A semi-permanent treatment has become a game-changer for individuals seeking long-lasting straight hairstyles.#Easystraight Hair Energy from Makarizo has created an easy to use hair straightening cream which provides a solution for straight, neat, and permanent hair without having to go to a salon.

Haircare for the Hijab-Wearing Market

The report by The Royal Islamic Strategic Studies Centre (RISSC) in 2023 indicates that the Muslim population in Indonesia has reached 237.55 million people, making it the largest in the Association of Southeast Asian Nations (ASEAN) region as well as globally.

The Muslim population in Indonesia accounts for 86.7% of the total, hence the booming segment of hijab-wearing women who face unique challenges including dryness, breakage and scalp issues.                       

Shampoo products especially created for hijab—wearing consumers (Sariayu and Pantene).

Ideal Haircare for the Indonesia Market

As Indonesia has a tropical climate with humidity usually between 70 and 90%, it’s crucial to prioritize clean hair. Because of that, it is recommended to cleanse one’s hair with a gentle, sulfate-free shampoo to remove dirt and pollutants. Hydrate hair with a moisturizing conditioner and treat it with deep conditioning treatments to combat dryness caused by humidity and minimize heat styling.

The Market is Shifting

The distribution channels for haircare products in Indonesia is split mainly between supermarkets/hypermarkets, specialty stores and online stores. Supermarkets/hypermarkets hold the largest market share, comprising approximately 40% of the total distribution channel.

Globally, Asia-Pacific emerges as the leading haircare market with a 40% share. This dominance can be attributed to factors such as the region’s substantial population, rising disposable incomes, and rapid urbanization.

The market landscape has undergone a significant transformation as offline stores have gradually given way to online shopping. This shift has been driven by the convenience and accessibility offered by e-commerce platforms for purchasing haircare products.

As a result, the online haircare market has witnessed substantial growth, prompting brands and retailers to establish robust digital platforms and expand their product offerings.

While offline stores still hold significance, the online shopping trend is expected to continue shaping the haircare market, providing consumers with convenience, variety, and a seamless shopping experience in the digital realm.

Conclusion

Indonesia’s haircare industry is on a path of continuous growth and evolution. The market offers a diverse range of products, from natural and sustainable solutions to personalized haircare.

Digital platforms, especially social media and e-commerce, play a crucial role in shaping consumer behaviour and introducing new trends.

Additionally, the demand for halal-certified products presents a significant opportunity for brands.

By staying up to date with consumer trends and focusing on innovation, the haircare industry in Indonesia is set to flourish for years to come.

Find out more about haircare at in-cosmetics Asia on 7-9 November, with Love is in the Hair, spotlighting formulated haircare ingredients.

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2023 is the year of India at in-cosmetics Asia and this is part of a series to shine a light on the dynamic Indian personal care market…

Koel Colours refer to their brand as “Global Champion in Dyes and Pigments”. In this quickfire interview, we sat down with Rishabh Desai, Director – Global Sales & Marketing at Koel Colours to gather his views about the colour cosmetic market and its current trends…

Post pandemic, how have colour cosmetics trends changed?

It is fair to say that trends have changed dramatically! Matt used to be in vogue but in India in particular, glossy is the preferred look. With millennials and the older Gen Z, the bling bling style is deemed more attractive whilst under 25 consumers prefer matt and the younger generation prefer a more metallic finish on their face. All in all, it’s about mixing the 2 looks together.

How does Koel Colours tap into these trends?

We offer ingredients that cater for both trends, from pink, but lighter than magenta to brown -we call them Gorgeous Pink and Elegant Brown. In India brown is the trend par excellence at the moment – it looks more natural as it matches local skin tones form light to dark with the benefit of looking more natural on photographs, too. Brown is used a lot in the lip area with subtle shades but Red still appeals more to Generation Z!

So does this mean a rosy future for colour cosmetics?

Yes, the colour cosmetic category is back and it is getting very strong. After a couple of years where the sector ground to a halt, consumers are now appreciating colour cosmetics again because of its value. And we have also noted even better quality as multinational brands in particular have stepped up their efforts.

What is Koel’s vision in the sector?

Heavy metals are clearly a concern for the end consumer. Diversification is one of our priorities and sustainability is top of mind so we are working hard on the R&D front to focus on natural sources. As an example, we use hectorite clay minerals to create certain effects with lipstick and mattifying agents. All our natural colours are fully compliant with global regulations and they have also been certified by major regulatory bodies such as FDA, FSSAI.

Koel Colours will be exhibiting at in-cosmetics Asia on 7-9 November

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Gen Zs are about 25% of the US population, and they’re growing up fast. (They are currently between the ages of 9 and 24.) This digitally native cohort has unique shopping habits after going through Covid in their formative years and thanks to their comfort with the digital world. From TikTok to the creator economy to payments trends, they are influencers in many ways, in many places.

Their influence on the beauty industry is significant for many reasons: 43% of US adult Gen Zs start their product searches on TikTok (JungleScout). This behaviour further establishes the power of social media (and certainly TikTok) where young beauty consumers are concerned.

This generation buys into influencer-endorsed products because of their focus on authenticity. They want to believe that the celebrity or influencer is creating a product because they believe in it (though we know this is often not the case). According to Cosmetify, the top 10 celebrity beauty brands in the US have combined retail revenue of about US$1.2 billion. Small but powerful and definitely influential.

Gen Z has been instrumental in promoting diversity and inclusivity in the beauty industry. They have championed a broader range of skin tones, body types and gender expressions. This push for inclusivity has led to the celebration of unique features and increased representation in all forms of imagery.

This demographic has a heightened awareness of environmental and social issues, pushing for sustainable and ethical beauty products. They prioritize transparency in ingredient selection and manufacturing processes.  They want eco-friendly packaging and the elimination of animal testing (They certainly aren’t alone in that category). This has prompted many companies to adopt more sustainable practices and develop products that align with these values.

This group is vocal about a number of causes that may not appear to be directly related to the beauty industry, but may influence us in discreet ways. Gen Z wants to know what companies stand for, how they vote, where they contribute money, how they treat their employees, how they deal with mental health issues, gun control, abortion rights.

There has been a strong interest among Gen Z consumers in “clean and natural” beauty products. They seek out brands that use minimal or no synthetic ingredients, prioritize “natural” and organic ingredients, and are free from potentially harmful substances. While this trend has influenced the development of “clean” beauty lines and increased transparency about product formulations, it’s also full of myths and half-truths.  Greenwashing is rampant.

• “Clean and natural” ingredients and products are not defined or regulated.
• The “free from” claim is not allowed in the EU.
• There are many concerns about carbon footprint, as well as over farming where natural, plant based ingredients are concerned.
• Plant based ingredients may be more sensitizing, less consistent, less sustainable, less efficacious and more expensive than a synthesized, lab created version.
• “Natural” preservative systems may not be robust enough to ensure product safety and shelf life, as we have recently witnessed with a couple of “natural, green” brands.

Gen Z has embraced a culture of do-it-yourself (DIY) beauty and self-expression. They are passionate about experimenting with makeup, hair colors and unique styles to express their individuality. This has led to the popularity of tutorials/how-tos, beauty hacks, dupes and creative makeup looks shared endlessly through social media platforms.

Appreciation for “retro” and a simpler life appears to be a feature of this generation’s behaviour: embracing analog cameras, old fashioned notebooks and pens, long playing records (LPs), in person experience and actually getting off the grid (at least occasionally). This phenomenon may be behind the quest for simplicity, thrift shopping and simplifying beauty products in a back-to-basics way.  Just look at what Gen Z has done with CeraVe!

This generation has shown a preference for authenticity and realism in beauty advertising and campaigns. They value brands that embrace imperfections and promote body positivity. Have you noticed the number of brands that offer freckle pens? This has led to a shift away from heavily retouched images and a greater emphasis on real people with diverse body types, skin conditions and ages.

Overall, Gen Z’s influence on the beauty business can be seen in the push for inclusivity, the demand for sustainable and ethical products, the popularity of DIY and self-expression, the shift towards “clean and natural“ beauty and the emphasis on authenticity and realism.

Many of them are very young, with opinions and preferences changing quickly and often. They are ethnically diverse and the largest generation in American history: about 69 million strong. Studying their behaviour is challenging. But don’t overlook them or take them for granted.  Many of them believe they can change the world, and they just might!

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I recently read an article in the Spanish newspaper El País entitled: “The life and death of a trend”, which inspired me to write this column.

As many of you know, I quite enjoy writing about trends. We can find inspiration from many sources and sectors, such as food, fashion, cosmetics, technology, science, wine, medicine, research, entertainment… It is exciting when we start to discover trends and specially to project them in the cosmetics industry.

How do big companies and indie and niche brands create consistently successful products? How do they develop products, applications and services that no one thought would work? The answer lies in knowing how to read market trends to generate opportunities around them.

How can we define a trend? A trend is a social inclination towards a topic, behavior or product. A trend identifies upcoming social, cultural, environmental, aesthetic and other changes that influence society’s behaviour.

Yves Saint Laurent said many years ago that: “Trends disappear, style is eternal”… The reality is that trends are born, grow, reproduce and die. To describe this process, it is necessary to understand the genesis of trends. In general, we can describe it as follows:

Megatrends → Macrotrends → Microtrends → Mode

In the following, we will look at the definitions of each of these stages:

Pyramid of Trends

Megatrends: These are far-reaching, long-term changes that have a significant impact on multiple aspects of society, the economy and technology. These trends typically last a decade or more and have a global influence. Megatrends are based on fundamental changes in areas such as demographics, technology, environment, economics and politics. Examples of megatrends include rapid urbanization, population ageing, digitalization, sustainability and globalization.

Macro-trends: These are long-term changes that affect an industry, a specific sector or a geographic region. Unlike megatrends, macrotrends are more specific and focus on narrower areas. These trends may emerge as a result of megatrends, but their impact is observed on a smaller scale. For example, a macro-trend in the fashion industry could be the rise in demand for sustainable and ethical fashion. These can last for several years.

Microtrends: Micro-trends are short-term, smaller-scale changes occurring within a specific industry, market or community. These trends usually last for a shorter period of time and may be driven by changes in consumer tastes, preferences or behaviors. An example of a micro-trend might be the sudden popularity of a new mobile application. They are short-term or more limited in duration.

Mode: We have seen that a trend is created when a novelty begins to be adopted by a considerable group of consumers, which generates in the rest of the population the feeling that this trend must be adopted, then the trend becomes in mode when the large part of the population standardizes it.

The article in El País states that: “A trend dies when it ceases to be novel and becomes ubiquitous, when it ceases to be used by a minority of trendsetters and is adopted by the vast majority”. A trend is a fact of recent appearance, known to all and has a good reputation for a short period of time.

We can see the genesis of trends in one example. The megatrend is globalization. The macro-trend is the Asian influence on Western culture. The micro trend is the popularization of Asian food in American countries. The mode is sushi.

In cosmetics, we can say that, after a technological innovation or a novelty in consumer behavior, a trend can be born. Trend is the prelude to fashion. The trend is consolidated when a segment of the population adopts it massively, generating in consumers the feeling that this trend must be adopted.

Evolution and death of a trend

In summary, megatrends are the broadest and most enduring changes that affect the global level, macrotrends focus on more specific areas, and microtrends are short-term, smaller-scale changes in an industry or community. Each of these categories is used to understand and analyze different levels of change and trends in different contexts.

How can we predict trends? This can be challenging, as it involves anticipating changes in consumer tastes, preferences and behaviors. Here are some strategies we can follow to predict them:

• In-depth research: Conduct in-depth research on the area or industry of interest. Examine demographic data, market research, industry reports, analysis of past trends, scientific and technological developments and any other relevant sources. Understanding the current context and driving forces will help identify possible future directions.
• Observing cultural and social changes: Observing social media conversations, emerging cultural movements, changes in values and consumer demands. These factors can provide clues to the directions in which trends are moving.
• Megatrend analysis: Examine megatrends that are in play, such as technology, sustainability, urbanization, demographics, among others. These broad trends can provide clues to areas where more specific trends might emerge.
• Observing innovations and disruptors: Pay attention to innovations and disruptive companies that are emerging in the market. Technological advances, new ways of doing business and creative solutions can indicate emerging trends.
• Tracking opinion leaders and industry experts: Keeping track of what opinion leaders and experts in the area of interest are saying is important because they may have unique information and perspectives on future trends.
• Data and pattern analysis: Use data analysis tools to examine past patterns and trends. This can be useful to identify early signals and recurring patterns that may indicate future trends.
• Creative thinking and strategic vision: With all the collected information, we can connect the dots and formulate possible future scenarios. It is important to keep in mind that trend forecasting involves a certain degree of uncertainty, as the future is always unknown.

The world of trends is exciting and we can find inspiration in phrases from famous designers. Christian Dior said: “By being natural and sincere, one can create revolutions without having sought them out. John Galliano said: “Style is wearing an evening dress to McDonald’s and heels to football. It’s personality, confidence and seduction”…

The cosmetics industry is one of the fastest adopters, trendsetters and innovators. The challenge is for us to identify trends in time to surprise consumers. The signs are there, speaking to us. Just as some trends are born and die, the strongest trends can go in cycles and reinvent themselves after a number of generations. As actors in the beauty industry, we must know how to anticipate and put a differential touch to our creations.

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South Korea is one of the top 10 beauty markets in the world, known for innovation, gentle ingredients, and pleasing packaging.

in-cosmetics Korea will hold a session with Mintel in the Marketing Trends Theatre to discuss in person the latest innovation trends hitting the South Korean market. Make sure you register to attend to get these insights directly from the source.

In the meantime, we will share our views on innovative trends in skincare, colour cosmetics and hair care products in the following sections.

South Korean Colour Cosmetics 

Lead the vegan makeup trend in South

Vegan makeup products are seeing growth as consumers’ interest increases. In addition, the vegan movement has potential to grow even more in the South Korean colour cosmetic market, considering current ethical and health trends and the consolidated success of vegan launches in Western markets. South Korean beauty trends resonate well with global markets.

It’s time to offer new products and brands to conscious consumers, and brands need to suggest vegan alternatives across subcategories, including tools.

Embrace eco-packaging as the norm

Although Western markets like the US and UK are leading in eco-friendly colour cosmetics packaging, South Korea showed strong growth between August 2021 and July 2022, compared to the previous year. The eco-friendly makeup trend in the South Korean market is rapidly catching up with Western markets.

Brands cannot afford to delay with packaging innovation and materials, as sustainability will become a must-have in the next couple of years; this will start with packaging.

Brands need to display their eco-friendliness with certifications or by applying new technologies.

Drive visibility and impulse lip colour purchases

Even during the pandemic, limited edition lip colour launches have shown steady growth and are positioned as an item that provides ‘sohwakhaeng’*.

Mintel Global New Products Database (GNPD) shows that 14% of lip colour launches between Aug 2021-Jul 2022 carried a limited edition claim – up from 8% in the 2018-19 period in South Korea market.

Actually, Sohwakhaeng is a trending term in South Korea. Meaning “a small but certain happiness”, it describes how a small piece of happiness can be found in daily life. A unique and collectable lip colour can bring sohwakhaeng to South Koreans.

Brands need to offer unique limited editions inspired by legendary products, collaborations with artists, and charities.

South Korean Skincare

Enhance the skin barrier

South Korean consumers want to protect or enhance the skin’s barrier, and skin barrier claims are mainstreaming in the skincare market.

Mintel Global New Products Database(GNPD) reveals that there has been a notable rise in the use of microbiome technology and pre/probiotics in facial care launches which claim to care for the skin’s barrier, and such innovation is expected to continue growing in South Korea’s skincare market.

Innovate new active ingredients and/or technologies, including microbiome care, to lead the market.

Go beyond just UV screening

In fact, sun care NPD with anti-ageing, whitening and reduction of fine line/wrinkles claims is increasing. New protective claims are also being added, eg blue light, IR and pollution. Plus, 8% of new sun care launches in 2021 in South Korea carried a blue light claim, a doubling compared to 2019 (4%). It is time to develop new protection claims, eg blue light, and propose these to sun care consumers.

Advance with hero ingredients

Although South Korea’s body care category is small in size, high growth is expected as body care transforms into an ingredient-driven market, similar to facial care

Body care is evolving into an ingredient-led category similar to facial care in South Korea. Hero Ingredients including sodium hyaluronate, panthenol, ceramide and niacinamide, amongst others, and their use is growing rapidly in body care launches.

Ingredients that are currently trending in facial care are highly likely to gain imminent popularity in body care. It is essential to pay attention to the on-trend ingredients appearing in facial care and quickly incorporate these into body care NPD.

South Korean Haircare

Cover grey hair with innovative shampoo

Shampoos that cover grey hair are buzzing in South Korea. They claim to cover grey hair gradually and safely after a few weeks of use. There is an opportunity to explore this newly growing market and promote the safe and efficacious formulation of these products.

Some consumers have concerns about the safety of hair colourants, such as skin irritation, and have been looking for a safe way to cover their grey hair.

Since 2021, grey hair-covering shampoos have been highlighted, appealing to consumers who have concerns about irritation from dye products on the market.

Lead the waterless movement in SK

Mintel’s 2025 BPC Trend Water – the new luxury outlines the importance of water-free haircare options due to global climate concerns.

The recent surge of waterless formats like bar and solid in the South Korean haircare market is outstanding and waterless haircare is expected to grow further in every haircare segment.

37% of South Korean women* would be willing to spend more on a beauty or grooming product that is environmentally friendly. Meanwhile, eco-minded solid formats are also rising and evolving in global market, as described in the Mintel Report, A year of innovation in haircare, styling & colour, 2021.

It’s time to offer a variety of waterless haircare to engage with eco-conscious South Korean consumers.

Focus on customisation

Customisation in haircare is not so active in South Korea, as brands tend to start offering customisable beauty in bigger categories like skincare. But high consumer interest will lead to growth in this category.

49% of South Korean women are interested in BPC product concepts that have custom formulas suitable for their skin/hair type*.

Brands need to explore customisable haircare, including addressing different hair types, bespoke hair colourants, etc, while to utilise up-to-date technologies to lead the future of haircare.

Register your interest to come to in-cosmetics Korea and see these products for yourself.

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The global cosmetic market has a projected CAGR of 5.36% during the period 2022 – 2026. The truth is that our industry is very resilient. All human beings have rights to beauty and cosmetics and that is why this industry always has opportunities for growth even in difficult situations such as pandemics, wars, recession, inflation… Below we will see some of the most interesting trends that will be protagonists in 2023.

Un beauty espresso por favor!: The pandemic accelerated the back to basics trend, which is why in recent months we have seen a boom in traditional ingredients such as aloe vera, vitamin C, panthenol, AHAs, among others. This year the turn is for caffeine. We are seeing very interesting proposals from suppliers with new materials obtained through by-products and upcycling processes. Coffee is rich in antioxidants and the cosmetics industry is taking advantage of it. We are seeing a boom in many formats such as masks, scrubs, serums, and moisturizing and nourishing creams. Caffeine skincare is the new black.

Real skin: This trend is all about normalizing real skin. We are seeing trendy concepts like glass skin, dolphin skin and skin cycling that allow us to improve the way the skin looks and feels… but do we really know our skin? Consumers this year will work harder to understand what the skin needs to give it what it really requires. Real skin has textures, spots, pores, pimples. Real skin has imperfections. This concept is related to the inclusion and diversity trend.

Beard boom: In men’s grooming we are seeing a very interesting trend. On the one hand, this year products and procedures such as waxing, laser hair removal, electric razor and depilatory creams will be booming. On the other hand, projections indicate that beard growth products will have great growth this year. On TikTok, the videos related to this category have approximately 400 million views. The beard care market has a projected CAGR of 6.7% for the next 4 years. In summary, we can summarize the trend like this: beard, yes! body hair, no!

Psychobiotics: This term refers to the use of probiotics for mental health. This year we will see new studies on the use of probiotics in improving the gut-brain connection. In fact, the intestine is beginning to be known as “the second brain” due to the large number of nerve connections it has. The main nerve that connects the brain and the gut is called the vagus nerve, which is the main nerve of the parasympathetic nervous system and plays a key role in regulating mood, heart rate, digestion, and immunity. The cosmetics industry will benefit from new scientific findings, so we will also begin to better understand the gut – brain – skin relationship.

CosmeTikTok: This platform was consolidated in 2022 as the leader to lead fashion, beauty and cosmetic trends. Every brand dreams of going viral on TikTok. In this regard, the portal nextinbeautymag.com indicates that “the speed of creating trends on this platform has meant that the media have a monthly edition in which the most successful cases (and also the most absurd) of this social network are collected in the field of cosmetics and make-up. The term hype is part of the new branding and refers to when the displayed content goes viral and becomes popular.

Skin boosting: After skin cycling, this is the concept that is gaining ground in dermatology and cosmetics. As the skin begins to show signs of ageing, boosters are used to restore elasticity, restore skin texture and improve the overall appearance. This term has been growing on social networks since 2020. This trend invites us to follow a facial care routine in which we strengthen the skin by applying more powerful ingredients a couple of days a week.

Cloud skin: This has been a viral trend on TikTok in recent months. Its purpose is to leave a diffused, light and soft effect on the skin but with a bit of glow that emulates the reflection of the sky with sunlight. Experts recommend using products to hydrate and illuminate along with makeup that controls excess oil. There are neither very shiny nor very matt finishes, the objective is to achieve a balance between both. This is a concept where we will see innovation in formats, textures, benefits and claims.

Slugging: This is a concept that comes from Korea. It consists of the application of an occlusive product (oil or wax) on the skin to create a protective layer that seeks to prevent water loss as well as keep the skin hydrated and moisturized. This trend is not ideal for all skin types, so it should be tested on combination or dry skin. We are seeing the launch of new emollients and waxes with very interesting physicochemical and sensory benefits for the development of new textures that are ideal for the slugging concept.

Beautherapy: This year we will see the rise of beauty as therapy. This is the evolution of trends such as self-care and wellness. Consumers are increasingly concerned with improving mental health and well-being, therefore beauty is becoming a daily routine that has the ability to make us feel better. For this reason, we will see new biochemical mechanisms and cosmetic efficacy studies that validate the psychological benefits of using skincare, body care, hair care, fragrances, and makeup products.

Psychodermatology: In a publication on January 2, 2023, the Glamour magazine indicates that this discipline analyses how our thoughts affect the quality of our skin and is projected as one of the great trends for 2023. Science has demonstrated how stress affects metabolism and many of the diseases we commonly face. It has also shown how stress is responsible for countless ailments including rashes, swelling, and redness, along with skin conditions such as acne, psoriasis, eczema, and rosacea. The publication also indicates that “the link between mind and skin is well established and can be explained at the biochemical level through the hypothalamic pituitary adrenal (HPA) axis. Stress activates this system in the brain to release chemicals and hormones that can cause or drive skin diseases.” In the development of psychodermatology, cosmetics plays a very important role and will be its main ally. We will see a boom in biochemical mechanisms and new skincare actives with psycho-claims that will be a great novelty. We will also see new formats, emollients and textures that adapt to this new reality.

In times of uncertainty, financial insecurity, and war risks, consumers are looking for a sense of control. People are also looking for sources of entertainment that bring moments of relaxation, happiness, and tranquillity in their lives. Cosmetics play a fundamental role for human well-being and the industry has a great opportunity for innovation in these times of crisis.

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Feeling inspired to see ingredients and trends in action?

Then why not visit one of the in-cosmetics events around the world?

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