Packaging companies should focus on a youth-driven cosmetics sector in Indonesia, is the finding of a new report from market analyst Canadean.
With 52% of the Indonesian population under the age of 29, Canadean says manufacturers in the region should focus on producing attractive and convenient packaging to appeal to younger consumer demographics.
“Consumers aged 15-29, predominantly students and young professionals, seek products that are easy to use on the go, and they are more prone to impulse purchases,” the company says.
Straightforward and easy
According to Canadean, young consumers are more easily influenced by appearance and design.
As spending increases in food, cosmetics, and personal hygiene, the quality and presentation of the packaging in these sectors should therefore be “faultless” with clean-cut graphics and fonts.
Canadean analyst Ronan Stafford says: “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.”
Canadean cites Kiehls, a cosmetics and skincare brand, which recently introduced dropper bottles for its personal care products such as Midnight Recovery Concentrate and Clearly Corrective Dark Spot Solution – products aimed at 15-29 year olds, and focused on the the delicate area around the eye and the elimination of spots.
The droppers were designed to allow precise application to specific areas, reducing waste and aiding ease of use.
“In addition, the dropper format is a novelty, and the packaging is attractive, as well as practical,” Canadean says.
Cosmetics sector high growth to 2016
Global brands L’Oréal and Unilever have recently opened new factories in Indonesia, indeed L’Oréal opened its largest factory worldwide in Java.
“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, according to Canadean – 2% faster than the expected growth levels in the food and non-alcoholic beverage sectors.
www.canadean.com
