Strong Demand for Halal Cosmetics in Asia-Pacific, with an Annual Growth Rate of Up to 15%

Strong demand for Halal cosmetics in Asia-Pacific, with an annual growth rate of up to 15%

In recent years, demand for vegan and cruelty-free cosmetics has surged, and more and more female consumers are paying attention to the ingredients in the cosmetics they use. The Halal cosmetics now in vogue are not a new phenomenon; smaller companies have already begun claiming that their products comply with Halal certification standards and bear a Halal certification mark. Although these products are not eaten, many Halal consumers believe that products applied topically to the skin should also meet Halal standards.

Because they believe the skin is the body''s largest absorbing organ, it therefore indirectly "consumes" all the ingredients applied to it. For example, lip balm or lipstick is easily ingested accidentally while eating or drinking, and some lip balms and lipsticks contain animal sources; in this case, holding a Halal certification mark can dispel the doubts of Halal consumers. Subsequently, more and more people use Halal cosmetics, because everyone wants to apply makeup safely - becoming more beautiful while also ensuring the cosmetics cause the least possible harm to the skin.

But most importantly, the product must pass through proper Halal certification channels to ensure that no non-Halal animals or substances - such as pork, alcohol, or contaminants - are present during production. The most popular Halal cosmetics on the market have pharmaceutical-based formulas, are cruelty-free, and are harmless to the skin. The products are made from high-quality natural ingredients (non-animal sources), such as shea butter, argan oil, vitamin E, and black cumin seed oil.

A few years ago, Halal cosmetics were just a niche market for a small number of small enterprises, mainly aimed at Halal-market countries in Southeast Asia such as Indonesia, Malaysia, and Singapore. Enterprises pinned the consumption growth of Halal beauty products only on the more dynamic young Halal-consumer markets (such as Indonesia or Malaysia). No regional or global Halal cosmetics brand had yet emerged, but this market is expected to achieve significant growth. In 2017, Halal consumer spending on cosmetics was USD 61 billion, projected to reach USD 90 billion by 2023.

Through this niche market, many emerging cosmetics in Indonesia have already achieved high year-on-year growth rates, such as Wardah, a pioneer in launching a Halal brand. But it has already faced competition from peers such as Mazaya Divine Beauty, Mustika Ratu, Caring Colors, and Viva, well-known brands that have also obtained Halal certification in recent years. So international brands are very likely to gradually add their product lines to the Halal-certified ranks too; the popularity of and demand for Halal cosmetics is surging day by day. This growth comes not only from the global Halal-consumer population but also from a growing number of health-conscious non-Halal consumers, who believe Halal-certified cosmetics are more associated with safety, high quality, and hygiene, so Halal-certified cosmetics will also become one of the trends in the cosmetics markets of non-Halal-majority countries.

At the same time, with the rapid growth of the global Halal-consumer population, people''s preference for Halal-certified cosmetics is getting stronger, so the global Halal-certified cosmetics market has grown rapidly in recent years. According to Grand View Research''s forecast, the global Halal-certified cosmetics market is expected to grow from USD 16 billion in 2015 to USD 52 billion in 2025. The global technology research and consulting firm Technavio reported that the Asia-Pacific market is expected to grow within the five years of 2017-2021 into the world''s fastest-growing and largest Halal-certified cosmetics market, with a compound annual growth rate (CAGR) expected to stay around 15%. As the chart below from Mintel shows, the number of newly launched Halal-certified cosmetics in the Asia-Pacific market in recent years far exceeds that of other regional markets.

Number of Halal-certified cosmetics launched globally in 2012-2017 (source: Mintel)

SINOQUAL senior certification specialist Lily Hou Hongzhu noted that to open up the broader Halal cosmetics market, obtaining the multiple Halal entry certificates required by mainstream overseas markets and commercializing them is a prerequisite. Based on her front-line experience serving many cosmetics enterprises in obtaining certification in recent years, the cosmetics certification standards of international Halal certification bodies have gradually become much more relaxed relative to Halal food. After more than a decade of accumulation since China joined the WTO, most high-quality cosmetic raw material suppliers already have solid international Halal qualifications, and domestic cosmetics brands have continually upgraded and built up a number of reputable enterprises. This has also enabled more high-quality domestic cosmetics producers to confidently go out and stand shoulder to shoulder with mainstream Japanese and Korean beauty brands in Asia-Pacific, riding the waves in this vast blue ocean and gaining the first-mover advantage.