Indonesia Shampoo Market - Strategic Insights and Forecasts (2026-2031)

Indonesia Shampoo Market Size:

Indonesia shampoo market is forecast to grow at a CAGR of 0.7%, reaching USD 0.555 million in 2031 from USD 0.537 million in 2026.

A growing urban population, rising disposable incomes, and expanding consumer awareness of personal cleanliness have all contributed to Indonesia's shampoo market's notable expansion during the last ten years.  Indonesia, one of the most populous nations in Southeast Asia, has a wide range of consumers, from brand-conscious city people to price-conscious rural purchasers.  There are both domestic and foreign brands competing for market share in this competitive market.  Important participants include multinationals like Unilever (with brands like Sunsilk and Clear), Procter & Gamble (Pantene, Head & Shoulders), and regional companies like Kino, which frequently use traditional herbal components to cater to culturally ingrained demand.  Particularly among younger, health-conscious consumers, natural and organic shampoos are becoming more and more popular.

Indonesia Shampoo Market Overview:

The Indonesian shampoo market is segmented by:

• Product: Based on product, the Indonesian shampoo market is divided into two segments, medicated/special purpose and non-medicated/regular. The non-medicated/regular segment is expected to hold the largest market share in Indonesia due to its broad availability and growing acceptability of mass-produced products. Non-medicated shampoos are more extensively used than their counterparts since they are more affordable and easier to locate. Additionally, the increasing availability of counter alternatives at pharmacies and drug stores is driving the income of the non-medicated shampoo category.

• Application: The two market types based on application are domestic and commercial. The domestic segment is expected to dominate the market. The reasons driving the growth of the domestic segment include the increasing number of toddlers and babies using baby shampoos and the significant product use for personal hygiene purposes in the home. It is anticipated that the increasing number of companies advertising their hair grooming products on social media and through celebrity endorsements would increase demand from Indonesian home consumers.

• Distribution Channel: The market is divided into convenience stores, online stores, hypermarkets, supermarkets, and others based on the distribution channel. The availability of a wide range of products on supermarket shelves allowed hypermarkets and supermarkets to dominate the market. This enables customers to know their alternatives and purchase a specific product or combination of products based on their hair care requirements. The segment's rise was aided by the new trend of buying personal care goods in bulk at department stores and supermarkets.

• Manufacturers: The market is divided into private label, toll manufacturing, and multinational segments based on manufacturers. The multinational segment's growth in the market is propelled by the consistent supply of branded goods, the distribution networks of major multinational corporations, and a strong clientele. Across Indonesia, these elements made a substantial contribution to the revenue generated by multinational corporations. The segment's growth is driven by expanding projects and capacity-building initiatives carried out by international corporations.

Top Trends Shaping the Indonesia Shampoo Market:

• Brand Trust in Tier-2 and Tier-3 Cities Driven by Micro-Influencers

In regional and smaller cities, local micro-influencers who speak in local dialects provide genuine product reviews and have a significant impact on Indonesian customers, in contrast to more crowded Western markets where celebrity endorsements predominate. In the middle-class and lower-class markets, where shampoo sachets are still widely used and trust is crucial, these influencers are essential. Their influence goes beyond marketing; they also influence opinions of social standing, religious compatibility, and product safety.

• Hyper-Localized Product Formats and Sachet

Indonesia's economic diversification and broad geographic area have contributed to the growth of the "sachet."  Customers frequently purchase shampoo in tiny, single-use sachets in rural or low-income areas because they are more accessible and reasonably priced.  To capitalize on this high-volume market, even luxury brands provide sachets.  Additionally, the designs of the sachets are suited for hanging in rural kiosks and warungs, which are small neighborhood shops. They feature eye-catching designs and localized wording to boost exposure and trust.

Indonesia Shampoo Market Growth Drivers vs. Challenges:

Opportunities:

• Chat-Based Commerce and Consumer Behavior Focused on Mobile: Millions of people in Indonesia use smartphones as their main internet access method, making it one of the most mobile-first markets in the world. Chat-based commerce using platforms like WhatsApp, Instagram direct messages, Shopee Chat, and Tokopedia has increased as a result of this digital habit. To provide a more responsive customer journey, shampoo businesses are increasingly utilizing these channels for direct sales, loyalty programs, and personalized product suggestions. This kind of business, which combines relationship-building with convenience, works particularly well with younger and local customers.

• Younger Populations and Their Desired Lifestyles: The median age of Indonesia is under 30, making it one of the youngest countries in Asia. This young group is not just tech-savvy, but also very brand-conscious and aspirational, seeking to express their identities through lifestyle goods. Shampoos are becoming instruments for presenting oneself in social situations and online, in addition to being hygiene necessities. As Gen Z and millennials desire originality, style, and ethical branding, youth-focused branding, gender-neutral goods, and minimalist packaging have emerged as powerful motivators for shampoo purchases. 

Challenges:

• The Regulatory Environment is Changing yet Inconsistent: Product licensing and safety approvals are provided by BPOM (Badan Pengawas Obat dan Makanan), which oversees the cosmetics and personal care sector in Indonesia. Long licensing processes and perhaps legal interpretations are challenges for importers. Updates must be made often to comply with new laws pertaining to safety disclosures, labeling, and halal compliance.

Indonesia Shampoo Market Competitive Landscape

The market is moderately fragmented, with many key players including Johnson & Johnson Inc., Amway Corporation, L'Oreal SA, and Unilever PLC.

• Sustainable product launch: In January 2024, a leading Korean luxury personal care company, Kundal, which is well-known for using honey and macadamia ingredients, unveiled its "REFRESHING ANTI-DANDRUFF Hair Care Line." The new product line has been introduced in Malaysia and Indonesia to satisfy the increasing demand in the Muslim market in Southeast Asia. It is certified as MUI Halal and vegan.

Indonesia Shampoo Market Scope:

Indonesia Shampoo Market Segmentation:  

• By Product

  • Medicated/Special-Purpose

  • Non-Medicated/Regular

• By Application

• Household

• Commercial