Packaging for the youth is set to grow in Indonesia
31 March 2014
Packaging companies should focus on a youth-driven cosmetics sector in Indonesia, finds new report from Canadean.
With 52% of the Indonesian population under the age of 29, manufacturers in the region should focus on attractive and convenient packaging to attract young consumers. Consumers aged 15-29, predominantly students and young professionals, seek products that are easy to use on the go and are more prone to impulse purchases.
Packaging should be easy to use, attractive, and straightforward
Young consumers are more easily influenced by look and design. As spending increases in the food, cosmetics, and personal hygiene sectors; the quality and presentation of the packaging should be faultless with clean-cut graphics and fonts. According to Canadean Analyst, Ronan Stafford, “the 130 million Indonesian consumers aged 29 or under are one of the best opportunities for consumer packaged goods (CPG) firms across Asia-Pacific. Packaging manufacturers need to lead the way in showing CPG firms the most effective strategies for targeting these consumers.”
For instance Kiehls, a cosmetics and skincare brand, recently introduced dropper bottles for its personal care products such as the Midnight Recovery Concentrate and Clearly Corrective Dark Spot Solution. These products are aimed at 15-29year olds, and focus on the elimination of spots and the delicate area around the eye. These droppers were designed to allow precise application to these specific areas, reducing waste and aiding ease of use. In addition, the dropper is a novelty, and the packaging is attractive, as well as practical.
Use of packaging in the cosmetics sector will see high growth to 2016
Global brands such as L’Oreal and Unilever have recently opened new factories in Indonesia. L’Oreal opened its largest factory worldwide in Java, Indonesia. This presents new opportunities to packaging manufacturers, who should pay close attention to the appearance of packaging for health and beauty products. Subsequently, the number of packs used in the health and beauty sector will grow at a CAGR (Compound Annual Growth Rate) of 7.4% for 2013-2016. This is 2% faster than the expected growth in the food and non-alcoholic beverage sectors.
These findings are based on the new Canadean report: ‘Latest Trends and Key Issues in the Indonesian Retail Packaging Market.’
As demonstrated on the figure above, the demand for health and beauty packs in Indonesia is to grow by 2016.
Java in Indonesia has become a hub for global brands such as L’Oreal, who is dedicated to ensure their packaging, is both innovative and environmentally friendly.