Indonesia's Compacts and Powders Category Thrives Amid Evolving Consumer Trends

Jakarta, March 28, 2024 – The Indonesian beauty and personal care market reached USD 9.24 billion in 2024 and is projected to grow at a CAGR of 4.60% until 2029. This growth is driven by the country’s young and tech-savvy consumers, who are increasingly interested in beauty and personal care products. The compacts and powders segment has become a crucial part of this expansion, as consumers seek products that offer convenience, affordability, and high quality. Local brands have capitalized on this trend by launching products tailored to Indonesian preferences, further driving market growth.

Compacts and Powders Market Overview

The market experienced significant fluctuations throughout 2024. In Q2, the category saw a 99.07% QoQ GMV surge and an impressive 522.92% rise in quantity sold, primarily due to Ramadan/Eid promotions. However, in Q3, sales declined as many consumers had already stocked up in Q2, leading to a 3.26% drop in GMV and a steep 72.58% decrease in volume.

Despite the Q3 downturn, Q4 marked a strong recovery, with a 107.21% QoQ GMV rebound to USD 43.1 million, while units sold nearly doubled (+93.90% QoQ) to 15.9 million. These fluctuations highlight the importance of leveraging seasonal peaks while also maintaining strong mid-quarter promotions to sustain sales momentum year-round.

Compacts and Powders E-commerce Share

Shopee solidified its dominance in the Compacts & Powders market, growing from a 76.26% market share in Q1 to 94.1% in Q4, a total increase of 343.71%. In contrast, Tokopedia and Lazada saw sharp declines, ending the year with only 2.7% and 3.2% market share, respectively, while Blibli remained negligible at 0.13%. This data underscores Shopee’s overwhelming influence in the sector, making it the go-to platform for brands seeking maximum visibility and sales. To stay competitive in this evolving market, other platforms must enhance their promotional strategies and customer engagement efforts.

Compacts and Powders Brands Share

Compacts and Powders Consumers’ Review Overview

Wardah consistently led in customer reviews, peaking in Q3 with 864K reviews—almost triple its Q2 count. Despite a slight dip to 712K in Q4, the brand remained ahead of competitors. Maybelline also showed strong momentum, growing from 60K reviews in Q1 to 333K in Q3 before settling at 246K in Q4. The sharp increase in Q3 reviews across multiple brands highlights the significant impact of mid-year promotional campaigns, emphasizing the need for strategic campaign planning.

Compacts and Powders Performance on Shopee

On Shopee, Maybelline and Wardah dominated in GMV, with Maybelline peaking in Q3 at 22.3% and Wardah leading in Q4 at 13.9%. Make Over maintained a strong presence in Q1 and Q2 but struggled later in the year due to intensified competition. Meanwhile, Somethinc gained traction in Q3, capturing a 5.4% market share, positioning itself as a potential challenger.

Compacts and Powders Performance on Lazada and Tokopedia

On Lazada and Tokopedia, Wardah remained dominant throughout the year, with its highest market share of 47.3% in Q4. The brand consistently expanded its lead, growing from 32.1% in Q1 to 35.1% in Q2. Somethinc demonstrated strong growth in Q3, reaching 4.8% in Lazada and 6.9% in Tokopedia, signaling its rising market presence.

Top SKUs of Compacts and Powders

While Wardah and Maybelline dominate brand share, competition at the product level is shaped by pricing strategies. Luxcrime attracts consumers with affordability, Somethinc balances affordability with desirability, and Make Over retains loyal customers through premium positioning. These pricing strategies will continue to influence competition in the Indonesian beauty and personal care market moving forward.

Overall, the Compacts & Powders category thrives on seasonal promotions, platform-specific dominance, and evolving brand competition. Wardah remains the clear leader, while Somethinc is emerging as a strong challenger in this competitive market.

Picture on Thumbnail from: freepik.com