Halal Cosmetics Will Become an Industry Hotspot

At the annual world-leading skincare and cosmetics expo in Paris, France, a bearded imam might look out of place. But Shaikh Ali Achcar says the growing demand for cosmetics is reflected not only in their use on the face but also in Muslim rules.

Achcar, from Switzerland's Halal Certification Services (HCS), said: 'When a product with animal-based ingredients has no Halal certificate, or contains alcohol, you cannot use it on your face or skin—because it is forbidden and considered impure.' Because Halal principles prohibit pork and the consumption of alcohol, lipsticks containing lard ingredients and many brands of perfume are beauty products with strict Muslim restrictions.

Since the EU began banning animal testing in 2013, and with the surge in demand for cosmetics among vegetarians, many new cosmetics on the market are now completely free of animal ingredients.

However, inconsistent labeling can easily cause confusion. Achcar said: 'Most consumers do not know whether a product contains animal ingredients. So when they see a Halal-certified product, they will buy it.'

At the cosmetics expo, nearly 800 exhibitors showcased not only their beauty products but also their laboratory equipment, testing supplies and regulatory compliance.

'In cases where products with animal ingredients are produced in the same factory, we must know how the factory separates production to avoid cross-contamination.' Achcar has begun building a client base in the cosmetics industry and offers 1,500 to 2,000 euros (US$2,250 / RM9,450) to sponsor his research team's product analysis work.

At the same time, HCS also inspects production factories to ensure they comply with Halal standards. 'Some of our competitors charge much more,' Achcar said. In addition, the Halal certificate must be renewed every year.

A few years ago, Halal cosmetics were just a niche market for fewer small businesses, mainly aimed at Southeast Asian Muslim countries such as Indonesia, Malaysia and Singapore.

The British market research company TechNavio shows that in 2014 the Halal cosmetics industry was worth about US$20 billion and was expected to double by 2019, accounting for 6 percentage points of the global cosmetics market. Monica Ducruet, who oversees regulatory work at the French subsidiary of the Swiss Givaudan fragrance group, believes this is because some countries are including a clause making Halal certification mandatory for cosmetics in their policies and regulations.

Mainstream cosmetics companies have begun to adapt to this trend. The L'Oreal Group already has hundreds of raw materials with Halal certification, has experts inspecting its production lines, and is turning its production lines toward the huge Indonesian market with 200 million Muslims.

An insider said: 'Some countries realize how much money they can make from Halal certification. For many people, this is not just religious belief, but a huge business opportunity.'

'In fact, the quality assurance of Halal products is very important to their entire value chain,' the German chemical giant BASF said at a recent press conference.

The company has 145 raw materials made in Germany for beauty and personal hygiene products that have passed Halal certification. But Givaudan's Ducruet pointed out that company certifications are difficult to standardize.

AFP's Relaxnews noted: 'This is mainly because of the lack of unified recognition among different certification bodies. Some countries, such as Indonesia, have a government-approved list of Halal certification bodies, but it is difficult to be recognized in other countries.'