Lumei's Insights on the Growth of Indonesia's Beauty Industry

Lumei Team
Aug 25
4 min read

Updated: Oct 29

Lumei shared insights on CNBC Beauty Journey about the growth of the beauty industry in Indonesia, the role of packaging, and the choice between local vs. imported packaging.

Lumei’s Journey and the Growth of Indonesia’s Beauty Industry

Lumei began its journey with perfume bottles. We then expanded to plastic bottles for skincare, body care packaging, and decorative packaging for makeup products. This evolution reflects how the industry’s needs continue to change in line with beauty trends and consumer preferences in Indonesia.

“Many young people are entering this business, which has led to the emergence of local brands with very creative ideas,” said Maria Yap.

With production capacity from several local factories — PT Kiroly Lagonder Sejahtera, PT Elka Abadi Industri, and PT Leipack Abadi Industri — Lumei is committed to supporting the growth of local brands through innovative and high-quality packaging solutions.

📈 Growth of the Beauty Industry in Indonesia: Opportunities and Challenges

The Indonesian beauty industry has experienced significant growth in recent years. In 2024, the personal care and beauty market is estimated to reach USD 9.24 billion, with an annual growth projection of 4.60% (CAGR 2024–2029) (Invest in Asia, 2025; Kontan, 2025). The skincare sector is the main contributor, estimated to reach USD 2 billion in 2024, with a projected CAGR of 9.4% until 2028 (Invest in Asia, 2025).

💡 Industry Insight: Young Consumers and Digitalization

Tech-savvy Generation Z is a key driver of this growth. They tend to choose products that align with their lifestyle and leverage digital platforms for shopping. This trend pushes brands to innovate in online marketing and product distribution (Suara.com , 2025; Compas, 2024; Fajar, 2025).

How Significant is the Role of Packaging in Cosmetic Products?

Ever wondered what percentage of a product’s cost is actually spent on packaging?

Maria explained that, proportionally, the packaging percentage varies for each brand. It is usually not dominant, but packaging often becomes the first factor that attracts consumer attention.

💰 Cosmetic Packaging Cost Benchmarks

Based on industry standards, packaging costs typically represent a percentage of the retail price, varying by market segment (Beauty Plus, 2025):

Low-Cost Segment: Packaging often accounts for less than 5% of the product price, suitable for high-volume, low-margin items.
Mid-Range Segment: Medium-quality packaging can cost 10%-15% of the retail price, balancing affordability and appeal.
Premium Segment: High-end packaging may cost 20%-30% of the retail price, emphasizing luxury and exclusivity.

Additional Insight: Packaging not only protects the product but also acts as a visual brand ambassador. Proper packaging design can:

Help differentiate products on crowded shelves.
Convey a premium or eco-friendly impression depending on brand positioning.
Enhance user experience, for example with pump functions, flip caps, or travel-friendly sizes.

Local or Imported Packaging: Which is Right for Your Brand?

In the CNBC interview, Lumei also discussed the dilemma between using locally produced packaging or imported packaging:

Local production: Faster, more flexible for small to medium orders, and supports the domestic industry ecosystem.
Imported: Still needed, especially when brands require designs or materials not yet available locally.

👉 Lumei’s Local Capacity

Lumei has strong local cosmetic production capabilities through:

PT Kiroly Lagonder Sejahtera
PT Elka Abadi Industri
PT Leipack Abadi Industri

With these facilities, we can produce PET, PP, and Cosmetic Tubes in bulk or custom, complete with in-house printing services. This allows local brands to access high-quality plastic packaging without waiting for imports.

👉 Plastic vs. Glass

Plastic-based packaging (PET, PP, cosmetic tubes) is generally available locally and can be produced with high flexibility.
Glass packaging, such as skincare serum bottles, glass perfume bottles, airless containers, and similar, often still needs to be imported due to limited domestic production.

💡 Learn more about our production capabilities here: Lumei Packaging – Cosmetic Packaging Factory

Additional Insight for Brands: New brands usually benefit from local plastic packaging due to shorter lead times and more cost-effective production and logistics.

The growth of Indonesia’s beauty industry opens wide opportunities for local brands to innovate.

Packaging is no longer just a container but a strategic branding tool that determines product appeal and perceived quality.

✦ Watch the full interview with CNBC here

👉 CNBC Beauty Journey – Industri Kosmetik RI Tumbuh, Kemasan Jadi Kunci Daya Tarik

Conclusion: The Future of Indonesia's Beauty Industry

As we look ahead, the future of Indonesia's beauty industry is bright. With the rise of local brands and innovative packaging solutions, we can expect to see even more growth. The key is to stay adaptable and responsive to consumer preferences.

In this dynamic landscape, brands must prioritize quality and sustainability. By doing so, they can not only meet consumer demands but also contribute to a healthier planet.

So, are you ready to take your brand to the next level? Let's embrace the opportunities that lie ahead in this vibrant industry!