An organic shampoo made with ingredients made in Indonesia can cost as little as $2.40, according to a new report from BI Intelligence.
The findings, which came from BI’s Global Business Intelligence, show that in the country’s largest markets, organic shampoo is selling for less than 1 percent of the market.
The report, which is based on data collected between September 2017 and August 2018, shows that the organic shampoo market in Indonesia grew by more than 25 percent in the first nine months of this year.
A total of 1,921 organic shampoo brands were listed on the market in the month of August, compared to 4,935 organic shampoo products sold in the same period last year.
“Indonesia is the only country in the world where organic shampoo has not gained a significant market share,” said Mark Burd, head of BI Intelligence’s Indonesia division.
“This is because the Indonesian market is fragmented, fragmented with only a handful of small-scale manufacturers who are the largest suppliers to retailers, wholesalers, and manufacturers in Indonesia.
These small-to-medium scale manufacturers are also the biggest consumers of natural products.”
Burd added that organic shampoo companies can easily expand their business by expanding into smaller markets and increasing the quantity of their products.
Indonesian organic shampoo was first introduced in the mid-1990s as an alternative to traditional shampoo and conditioner, but has since gained popularity with consumers and was promoted as an environmentally friendly alternative.
In September 2017, the country launched a pilot program in the capital Jakarta to introduce organic shampoo and to give a boost to the local economy by increasing the number of organic shampoo factories and adding organic brands to the market, as well as by introducing new products, such as the shampoo from the organic biotechnology company Agaric.
The BI Intelligence report also showed that there were almost 1,700 organic shampoo suppliers in Indonesia in the year ended September 2018, up from 896 organic shampoo vendors in the previous year.
Indosia has a total of 8,924,942 people, according the BI Intelligence database, making it the fifth largest market for organic shampoo in the Asia-Pacific region behind China, the United States, Japan, and Singapore.