Japanese Beauty Giant Responds to Growing Market Demand and Regulatory Requirements

Kao Corporation has significantly expanded its halal-certified personal care offerings in Indonesia, launching new products and planning increased local production capacity ahead of the country’s mandatory halal certification deadline. This strategic move positions the Japanese beauty giant to capitalize on Indonesia’s rapidly growing personal care market while meeting both regulatory requirements and consumer expectations.

New Product Launch Targets Local Consumer Needs

The company recently introduced Biore Breeze Deodorant, a halal-certified product developed specifically at Kao’s Indonesian research and development center, which opened in 2023. The deodorant addresses the specific needs of local consumers, particularly Muslim women who wear hijab in Indonesia’s hot, humid climate. Available in both gel and spray formats, the product demonstrates Kao’s commitment to developing region-specific solutions.

Strategic Response to Regulatory Timeline

With Indonesia’s government requiring halal certification for all household products, including cosmetics and personal care items, by October 2026, Kao has positioned itself well ahead of the deadline. The company reports that it has already obtained certification for many products and expects most of its local portfolio to achieve compliance before the mandatory requirement takes effect.

Looking toward future production, Kao plans to manufacture halal-certified sunscreen locally by 2026, expanding production capacity at an existing facility to meet growing demand for certified products.

Market Expansion Amid Regional Strategy Shift

Indonesia has emerged as Kao’s largest overseas market for household goods, surpassing China in importance for the company. This shift reflects broader strategic changes as Kao reduces its exposure to the Chinese market, where cosmetics and diaper sales have declined, while simultaneously expanding its presence across other Asian markets.

The Indonesian beauty and personal care sector presents substantial growth opportunities, with market value reaching approximately $9 billion in 2024 according to Euromonitor projections. Industry analysts forecast the market will expand to $13 billion by 2029, representing significant potential for companies positioned to serve this growing consumer base.

Adapting to Consumer Expectations

Kao’s expansion of halal-certified products reflects the company’s recognition that meeting regulatory requirements alone is insufficient. Indonesian consumers increasingly expect and actively seek halal certification in their personal care products, making certification both a compliance necessity and a competitive advantage in this market.

The company’s investment in local R&D capabilities through its Indonesian research center demonstrates a long-term commitment to understanding and serving local consumer preferences while ensuring products meet cultural and religious requirements.

This strategic focus on halal certification positions Kao to benefit from Indonesia’s mandatory certification timeline while building stronger relationships with consumers who prioritize halal-certified personal care products.

Original Article:

Global Cosmetics News. (2025). Kao expands halal personal care range in Indonesia. Global Cosmetics News. Retrieved from https://www.globalcosmeticsnews.com/kao-expands-halal-personal-care-range-in-indonesia/