The Booming Skincare Industry: Definition, Lifestyle Trends, and Halal Demand

The booming skincare industry: definition, lifestyle trends, and Halal demand

As a sub-category of cosmetics, skincare products have become part of the modern lifestyle. Since the COVID-19 pandemic, the industry''s 77% growth highlights the huge market size and the urgency of mandatory Halal regulations - taking the Indonesian market as an example, the regulation will take effect this year.

Data from Indonesia''s Ministry of Industry show that over the past three years, the number of enterprises in the cosmetics industry has surged by more than 77%. In 2020 there were only 726 domestic cosmetics enterprises, and by 2024 this had jumped to 1,292. Of these, 83% are micro and small enterprises, and 17% are medium and large industries.

In modern times, skincare is no longer just a supplement, but an indispensable part of daily life. As skincare products become more widespread in the market, the term "skincare" has become increasingly popular. But what exactly is skincare? How is it regulated? Why is Halal certification an important concern?

From a regulatory perspective, there is no difference between skincare and cosmetics. According to I Gusti Ngurah Bagus Kusuma, head of cosmetics supervision at BPOM, cosmetics are substances or preparations used on the exterior of the human body for cleansing, perfuming, changing appearance, correcting body odor, or protecting and keeping the body in good condition.

Under this definition, skincare falls under the cosmetics category, specifically products focused on skin care. In practice, cosmetics are mainly divided into two major categories: decorative products such as loose powder and lipstick, called makeup; and skincare products such as face cream and body lotion, called skincare. The regulations governing both reference the same provisions.

The surge of skincare brands in recent years reflects changes in people''s lifestyles. According to Dr. Priyo Wahyudi, an expert at Laboratory LPPOM MUI, skincare is no longer regarded as an extra necessity, but an indispensable part of daily life. Growing demand has driven the rapid growth of this market.

Major Indonesian local and international brands are competing to launch innovative products that meet consumer needs. The self-care trend is also reinforcing skincare''s position in modern society, with more and more people realizing that healthy skin is a long-term investment.

Although skincare and cosmetics are both cosmetics, their roles differ. Makeup focuses on appearance, such as covering blemishes, concealing flaws, or emphasizing facial features for more harmonious proportions.

Products such as foundation, pressed powder, blush, lipstick, and mascara can instantly enhance appearance with immediate effect. In contrast, skincare is dedicated to maintaining skin health, moisturizing, sun protection, and solving problems such as acne or dry skin. Skincare''s role is more preventive and long-term, which makes it very important to many people.

Since both are cosmetics, the applicable regulations are similar. Under Indonesia''s Law No. 33 of 2014 on Halal Product Assurance (UU JPH) and the 2024 Government Regulation (PP) No. 42, all cosmetics must obtain BPJPH Halal certification, with a deadline of October 17, 2026. Considering that the majority of Indonesia''s population is Halal-observing, Halal certification is not just a preference but a necessity.

As public awareness of product safety and Halal certification rises, Indonesia''s demand for Halal cosmetics is also growing. This fact brings significant opportunities to the cosmetics industry, especially in the skincare field.

Globally, the industry is expected to reach USD 677.2 billion by 2025, with a growth rate of 3.37%. With over 141 million female population and strong potential from high attention to self-care, Indonesia is poised to become an important player. In addition, products that prioritize Halal elements have unique appeal in both domestic and overseas markets.

With this huge potential, skincare manufacturers need not only to create high-quality products but also to ensure compliance with Halal regulations. For consumers, understanding Halal certification is crucial when choosing products that are safe, high-quality, and consistent with their values. Skincare is no longer just a beauty product; it is part of a healthy lifestyle and identity, providing important opportunities for the industry''s future development.