The Halal hair care products market in Indonesia was valued at USD 1.4 billion in 2021 and is expected to grow at a CAGR of 6.2% from 2022 to 2030. The increasing demand for Halal-certified products in the country is driving the market growth. The majority of the population in Indonesia follows Islam, and hence, the demand for Halal-certified products is increasing. Furthermore, the rising trend of using natural and organic products is helping the Halal hair care products in gaining market traction.

The increasing awareness about the importance of hair care among consumers is creating an upsurge in demand for hair care products. Additionally, the increasing number of hair styling salons in the country is further augmenting the Halal hair care products market. Additionally, the growing trend of hair coloring and hair straightening is creating a demand for hair care products in the country.

Furthermore, the introduction of innovative products is expected to drive the market growth. For instance, in October 2020, Sariayu launched the first Halal-certified hair treatment product in Indonesia. The product is infused with natural ingredients such as honey, green tea, and aloe vera. Additionally, the growing trend of using natural and organic ingredients is expected to drive the market growth. For instance, in November 2020, Homecare launched a range of Halal-certified natural hair care products. The products are formulated with natural ingredients such as honey, green tea, and aloe vera.

The growing demand for online shopping and the increasing penetration of internet users in the country is expected to drive the market growth. The growing number of e-commerce platforms such as Lazada, Tokopedia, and Shopee and the increasing popularity of social media platforms are creating a demand for Halal hair care products in the country. Additionally, the growing popularity of Halal-certified hair care products among Muslim consumers is expected to drive the market growth. Furthermore, the increasing demand for premium products is another factor that is expected to propel the market growth.

The shampoo segment accounted for the largest market share of 55.6% in 2021. Halal shampoo products are gaining more traction due to growing demand from religious Muslim consumers. Halal shampoos are formulated with natural ingredients such as aloe vera, argan oil, and herbs that are free from animal derivatives. Furthermore, an article published by the Islamic Food and Nutrition Council of America (IFANCA) stated that the production of halal shampoo is done in a manner to ensure that its product components are free from animal-derived ingredients. This has led to an increase in the demand for halal shampoo products in Indonesia.

The hair color segment is expected to expand at the fastest CAGR of 10.7% over the forecast period. The increasing use of hair color products among Indonesian women is driving the growth of the market. According to an article published by the World Economic Forum (WEF), in April 2021, approximately 45% of women in Indonesia use hair color products. Moreover, the rising demand for halal hair color products has driven the growth of the market. Halal hair color products are market with natural ingredients such as henna, aloe vera, and amla that are free from animal derivatives. This has led to an increase in the demand for halal hair color products in Indonesia.

The supermarkets and hypermarkets segment accounted for the largest market share of over 50.0% in 2022. The segment is expected to remain dominant during the forecast period owing to the rising customer inclination towards supermarkets & hypermarkets as a primary source to purchase beauty and personal care products. According to a study by McKinsey in 2020, Indonesians are more likely to buy brands after touch and feel the experience in supermarkets & hypermarkets as only 30% of them shop frequently on their mobile devices. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required hair care product.

The online segment is expected to expand at the highest CAGR of 13.4% over the forecast period. The development of e-commerce in the personal care and hair care industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in November 2022, BeautySage launched a new website specifically for Indonesian consumers offering halal hair care products. The website will offer brands across categories like hair oils, shampoos, conditioners, and hair masks. In addition, it will also offer the best brands and products for Halal haircare along with expert advice and opinions on choosing the best regime.

The mass segment accounted for the largest revenue share of 64.9% in the year 2022. The mass segment is expected to hold its dominant share in the forecasted period due to the increasing affordability of halal hair care products in Indonesia. The rising disposable income, especially among middle-class population, has made halal hair care products more accessible. Furthermore, the high availability of these products in local stores has increased their demand. For instance, Wardah Beauty, a brand of Indonesian halal cosmetics, offers affordable hair care products such as shampoos, conditioners, hair dyes, and hair masks.

The premium segment is projected to expand at the highest CAGR of 8.9% over the forecast period. The presence of a number of global players in the industry is driving the market for premium products. For instance, Muslimah Beauty, a U.K.-based company, offers premium hair care products, such as the Halal Hair Repair Conditioner and the Halal Hair Repair Shampoo. Furthermore, the growing number of high-end salons and spas in Indonesia is fueling the demand for premium halal hair care products.

Indonesia is the largest market for halal hair care products and is expected to maintain its lead in the coming years. The increasing Muslim population in the country is a key factor driving the growth of the market in the region. Moreover, the growing demand for natural and organic hair care products is further contributing to the growth of the market. For instance, in December 2021, the Indonesian beauty brand Wardah launched their halal certified hair care series, which includes a shampoo, conditioner, and hair mask.

Asia Pacific is expected to witness the second-highest growth in the market owing to the presence of a large Muslim population in countries such as Malaysia, India, and China. An increase in the demand for halal certified products from Muslim consumers is further driving the growth of the market. Additionally, the growing awareness regarding the impact of chemical-based hair care products is also contributing to the growth of the market in the region. For instance, in April 2021, the Malaysian brand Halal Cosmetics launched a hair care range containing natural and certified halal ingredients.

In this part of the Indonesia Halal Hair Care Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a Indonesia Halal Hair Care Products business comes from retail sales, online sales, wholesale, and distribution. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and product endorsements.

Projecting Expenses

In this section, all the regular expenses related to keeping the Indonesia Halal Hair Care Products business running will be described. The list of operating expenses includes registration fees, wages, raw materials, packaging, research and development, advertising, and others.

Some of the major companies operating in the Indonesia Halal Hair Care market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Unilever launched a line of halal-certified hair care products in Indonesia, with the launch of Suave Professionals Sulthon Shampoo, Conditioner and Hair Oil.

– In August 2022, Sunsilk launched a line of halal-certified hair care products for the Indonesian market, including shampoo, conditioner and hair serum.

– In October 2022, Garnier launched a line of halal-certified hair care products in Indonesia, including shampoo, conditioner, hair oil and hair mask.

Some of the prominent players in the Indonesia Halal Hair Care market include:

– Unilever
– Sunsilk
– Garnier
– L’Oréal
– P&G
– Amara Cosmetics
– Marcks Cosmetics
– Mustika Ratu
– Wardah Cosmetics
– Sari Ayu

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global Indonesia halal hair care products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Shampoos
– Conditioners
– Hair Treatments
– Hair Styling Products
– Hair Colorants

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Beauty Salons
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– Indonesia
– Asia Pacific
– North America
– Europe
– Middle East & Africa

[Q]: What is the Potential for Halal Hair Care Product Growth?
[A]: The global halal hair care products market is expected to grow significantly during the forecast period due to the rising demand for halal certified products, primarily in the Asia Pacific region. Moreover, the growing demand for premium quality and organic products is further boosting the market growth. The introduction of innovative products and the increasing demand for natural ingredients are further contributing to the growth of the market.

[Q]: What are the Key Drivers and Restraints of the Halal Hair Care Products Market?
[A]: The key drivers of the halal hair care products market are the growing awareness of the importance of halal certification, the increasing demand for natural and organic products, and the rise in disposable income in developing countries. On the other hand, the high cost of ingredients in halal hair care products and the lack of standardization of halal certification are expected to restrain the market growth.

[Q]: Who are the Key Players in the Halal Hair Care Products Market?
[A]: Some of the major players in the halal hair care products market are Unilever, L’Oreal, Shiseido Company, Limited, Procter & Gamble, Amara Cosmetics, Halal Cosmetics, and INIKA Organic.

[Q]: What are the Opportunities for Halal Hair Care Products in Indonesia?
[A]: Indonesia offers a great potential for halal hair care products due to the large Muslim population and the increasing demand for halal certified products. The government of Indonesia is also encouraging the growth of the halal industry through various initiatives. Moreover, the increasing number of halal beauty events and the rise in digital advertising and marketing strategies are further aiding the growth of the market.