Halal Skincare: a Promising Market Under Increasingly Strict Regulation

Halal skincare: a promising market under increasingly strict regulation

Halal skincare is emerging as a rising star in the cosmetics industry. Its consumption scale reached USD 5.4 billion in 2022, and the market is forecast to keep growing. Indonesia is not only the world''s second-largest consumer country but also has the potential to become a global center for Halal skincare production and innovation. Against the backdrop of mandatory Halal regulations in October 2026 and an increasingly strong self-care trend, Halal skincare is no longer just a fad, but a brand-new standard in modern lifestyles.

Indonesia''s Halal cosmetics consumption trend keeps growing, showing huge potential in the global market. The State of the Global Islamic Economy Report 2023/2024 shows that Indonesia is the world''s second-largest Halal cosmetics consumer country, with consumption reaching USD 5.4 billion in 2022. As public awareness of the importance of safe products that conform to Islamic teachings keeps rising, this figure is expected to keep increasing.

As cited by Indonesia''s consumer news and business channel (cnbcindonesia.com), Indonesia''s cosmetics industry market size in 2024 is expected to reach USD 9.17 billion, with an average annual growth rate of 4.02%. This growth is mainly driven by the public''s rising attention to self-care, as well as industry trends such as natural products, Halal products, and technological innovation. This expanding market also benefits from the growth of micro, small, and medium enterprises (SMEs) and more convenient market access achieved through e-commerce.

This phenomenon is particularly evident in the supply of skincare products emerging on various online platforms. These products come not only from local Indonesian manufacturers but also from overseas, and consumer purchasing channels are increasingly convenient. While this accessibility brings significant advantages, it also brings new challenges, especially in product safety and Halal compliance. Without strict regulation, consumers may end up buying products that do not meet standards, whether in ingredients or production processes.

I Gusti Ngurah Bagus Kusuma Dewa, head of the cosmetics regulation division of Indonesia''s National Agency of Drug and Food Control (BPOM), emphasized that although Halal certification is not BPOM''s main responsibility, the agency still plays a role in post-market regulation. The agency tests cosmetics containing animal-derived ingredients to check for pork-source DNA. He explained: "If testing finds that a product that has obtained Halal certification contains pork-source DNA, BPOM can take follow-up measures in accordance with current regulations, especially those related to product-ingredient compliance."

On the other hand, under Article 161 paragraph (1) item d of Indonesian Government Regulation No. 42/2024, mandatory Halal certification for cosmetics has been incorporated into regulatory requirements. The regulation stipulates that mandatory Halal certification for cosmetics, chemical products, and genetic-engineering products will be implemented in phases, with an implementation period from October 17, 2021 to October 17, 2026. This means that after that date, all cosmetics must obtain Halal certification, unless the product explicitly states that it contains non-Halal ingredients.

As the main relevant party, the Halal Product Assurance Agency is currently developing implementation guidelines specifically for cosmetics Halal certification. Mamat Salamet Burhanudin, deputy head of Halal registration and certification at the Halal Product Assurance Agency, explained that these guidelines will be developed based on the principles of the Halal Product Assurance System (SJPH).

Mamat said: "Enterprise operators must commit to consistently maintaining the Halal status of their products from raw-material selection and production processes to the final product. In addition, product names must not use wording that violates Islamic teachings or breaches customary norms. We must also continuously conduct assessments to ensure Halal integrity is safeguarded."

As the market keeps growing and regulation becomes increasingly strict, Halal skincare will no longer be just a fad, but a brand-new standard that every participant in the cosmetics industry must meet. For consumers, this is an assurance of safety and peace of mind when using personal-care products; for manufacturers, complying with Halal standards will be the key to surviving and keeping an edge in an increasingly competitive market.