Min-Kyoung Cheong, President Director of Cosmax Indonesia, outlines the company’s integral role in catering for a rapidly growing Asian beauty market, providing tailored skincare products, halal and vegan cosmetics, and a constant awareness of consumers’ evolving needs.
AT THE CORE OF ASIAN COSMETICS
In recent years, the Asian cosmetics market has experienced significant growth as beauty techniques and products from the region increasingly enter the mainstream.
For example, global consumption of Korean cultural exports such as K-drama and K-pop has increased visibility for K-beauty standards, alongside the viral South Korean glass skin trend.
There is also noticeable growth in Chinese cosmetics, with traditional Chinese medicinal practices such as gua sha gaining exposure from social media platforms including TikTok and Instagram. In India, meanwhile, a nationwide expansion of online shopping has increased accessibility to cosmetics, leading to the emergence of numerous local brands.
“In Southeast Asia, the industry has experienced remarkable growth, particularly in Indonesia – a market long-recognised for its high growth potential in cosmetics,” introduces Min-Kyoung Cheong, President Director of research and innovation (R&I)-focused cosmetics manufacturer Cosmax Indonesia.
Cheong’s flourishing company is well placed to capitalise as this boom continues, with the country’s cosmetics market projected to thrive at a compound annual growth rate (CAG) of seven percent by 2030.
Cosmax Indonesia is, therefore, in the process of expanding its operations by constructing a new logistics centre and an additional six-hectare (ha) factory site. These new developments are set to complement the company’s existing 1.4 ha factory facility, R&I Centre, and marketing office in Jakarta.
“Our R&I Centre not only researches and develops formulations for most types of cosmetics but also conducts efficacy and compatibility tests to guarantee the claimed benefits of each product,” affirms Cheong.
Additionally, its Regulatory Affairs team ensures compliance with laws and regulations, enabling the immediate launch of new products to the market.
Supported by more than 300 dedicated production staff and 70 R&I employees producing a wide range of products, Cosmax Indonesia is ideally positioned for continued success.
“Recently, Asian consumers have moved away from following beauty standards imported from Europe or the Americas. Instead, they are pursuing uniquely Asian ideals of beauty”
Min-Kyoung Cheong, President Director, Cosmax Indonesia
SHOWCASING NATURAL BEAUTY
With a focus on developing skincare and cosmetics for Southeast Asian customers, particularly those in Indonesia, many emerging and independent domestic brands have turned to Cosmax Indonesia and its R&I capabilities for support.
As a result, the majority of the company’s 200+ clients today are independent brands native to the country.
“Recently, Asian consumers have moved away from following beauty standards imported from Europe or the Americas. Instead, they are pursuing uniquely Asian ideals of beauty, particularly seeking to discover and enhance their inherent, inner beauty,” Cheong reflects.
This burgeoning self-awareness has led to a shift in demand. Where skin-brightening products once dominated, there is now a rising preference for embracing and healthily showcasing natural skin tones. This trend is not only limited to Indonesia but is also seen in other emerging markets in tropical regions with large populations and growing economies.
To meet this heightened demand, Cosmax Indonesia is preparing a new product line featuring skincare products that address common concerns in tropical regions, as well as colour cosmetics suited to the skin tones of consumers in these areas, available at an accessible price point.
Launching this year, the company plans to further develop the project by using natural ingredients and utilising extracts from native Indonesian plants.
“We are also expanding our internal capabilities, which include acquiring more advanced analysis equipment for precise skin assessments and establishing a Sensory Lab to better understand the sensory experiences of tropical consumers.”
Externally, Cosmax Indonesia is planning to expand joint research efforts, working not only with the pharmacy departments of key universities, with which it has collaborated in the past, but also with Indonesian government research institutions in the hope of developing innovative new ingredients.
CLEANING UP
The cosmetic industry’s recent growth in Indonesia can be partially attributed to the COVID-19 pandemic, which drove increased consumer awareness of hygiene, health, and safety standards. This, in turn, expanded the meaning of halal, traditionally a religious concept, to include clean and safe cosmetics.
“As halal and vegan cosmetics have come to symbolise clean and safe beauty, the demand for such products has increased over the past decade,” Cheong observes.
As such, Cosmax Indonesia’s factory obtained a halal cosmetics production certification from the Indonesian government in 2016, followed by vegan and organic product production certifications in 2020.
“Our halal certification has now evolved to symbolise safe, trustworthy products that our customers can rely on,” he prides.
As the global growth of the Muslim beauty market continues, this certification is expected to be particularly beneficial as the company looks to expand into emerging markets with large Muslim populations, such as Indonesia, Pakistan, India, and the Middle East.
Additionally, Cosmax Indonesia’s vegan and organic certifications align with the growing consumer interest in health, hygiene, and safety, allowing the company to produce and supply products that meet these demands.
Cosmax Indonesia is also adopting new production technologies, such as robotics automation, to keep pace with this rapidly expanding market.
ONE WORLD, ONE COSMAX
Cosmax Indonesia’s global network is centred around a collaborative organisation known as the brand’s Global Corporate Centre (GCC), which operates under the motto ‘One World, One Cosmax.’
The GCC facilitates a company-wide, international network for sharing market trends and expertise amongst regions such as Korea, China, the US, Southeast Asia, Europe, the Middle East, and South America.
It also enables the development of new formulations and technologies tailored to each market, ensuring the delivery of high-quality products to customers worldwide.
Leveraging this robust network, Cosmax Indonesia has been able to offer local clients products with globally recognised research outcomes and quality standards.
“As a result, we have achieved continued mutual growth with local brands across Indonesia,” Cheong informs.
Additionally, the company shares a number of natural raw materials derived from Indonesia’s indigenous tropical plants through the GCC network, further contributing to its values of innovation and collaboration.
“To support our clients, it is essential to identify the strengths and weaknesses of their brands, analyse their pain points, and propose solutions by developing new products through the GCC network.
“Given the nature of this business, earning and maintaining trust is the most critical aspect,” he adds.
“We’re continually working to enhance our research capabilities to understand and solve the skin concerns of tropical regional consumers”
Min-Kyoung Cheong, President Director, Cosmax Indonesia
A BRIGHT FUTURE
By the end of 2023, Cosmax Indonesia had surpassed an annual revenue of IDR1 trillion, solidifying its position as the undisputed leader amongst cosmetics, R&D, and contract manufacturing companies in Indonesia.
“This achievement is the result of over a decade of operations marked by relentless efforts in R&I, quality control, and productivity enhancement to deliver first and best-in-class products, earning the trust of our clients with consistently high-quality standards,” Cheong asserts.
In 2024, the company maintained its leadership within the industry, achieving more than 25 percent year-on-year growth in revenue.
In recent months, it has placed particular emphasis on enhancing the capabilities of its employees by providing more opportunities for training, education, and overseas business trips.
As the leading cosmetics brand in the region, the company is now preparing policies to not only enhance employee’s skill sets but further improve their overall working environments for the future.
Beyond maintaining its position as the nation’s industry leader, going forwards, Cosmax Indonesia aims to become the best R&I-based cosmetics contract manufacturer in Southeast Asia.
To achieve this, the company’s medium-term strategy includes completing and operating its new factory, which is currently under construction, by 2027.
To support investments driven by revenue growth, Cosmax Indonesia is also considering listing on the Indonesian Stock Exchange (IDX) to secure longer-term prosperity.
“Meanwhile, we’re continually working to enhance our research capabilities to understand and solve the skin concerns of tropical regional consumers,” he passionately concludes.
