The Indonesia halal haircare market is estimated to reach USD 1.27 billion by 2025 according to a recent report by Grand View Research. “increasing preference among the Islamic population regarding ethical consumption of beauty products has contributed largely to industry growth in recent years,” explains the market research firm.
Additionally, rising demand for organic and vegan-friendly products by the consumers has also driven more positive outlook for halal products in the region and across the globe.
Indonesia also proposed a law stating that all products must be halal certified by 2019. This has created huge potential for these personal care products, encouraging numerous multinational cosmetic brands to launch certified products. Expanding middle-class population and their willingness to pay premium prices for quality products has also had a positive influence on industry growth as well.
The demographic structure of the country, comprising of over 60% youth, has proved beneficial for importers and manufacturers of hair care products. Young people are attracted to innovative products. Labels such as organic, animal cruelty-free, and vegan are not only influencing the Islamic, but also the overall population in the country.
Shampoos were the dominant product category in 2015, with over 33% of the revenue share in 2015 and expected to grow at a rapid pace over the forecast period. Conditioners are expected to experience highest growth with a CAGR  of 12.2% over the forecast period.