Industry News

As many traditional markets around the world rapidly become saturated, Muslim communities are developing some of the fastest-growing consumer product sectors globally. One of the most promising areas is the halal cosmetics industry, which offers a key growth opportunity for personal care and cosmetics companies.

The word "halal" generally refers to an action or thing that complies with Islamic law. Halal cosmetics are described as skin and body care products that do not use materials or ingredients prohibited in Muslim society.

Halal cosmetics production is considered an innovation within the skincare and cosmetics industry. New technologies, as well as internal and external methodologies, are being introduced in R&D, formulation, and production. The overall scope of halal compliance is much higher, encompassing all aspects of manufacturing, from sourcing raw materials to production, transportation, goods management, warehousing, and retail.

The concept of "halal" is becoming increasingly complex. Ten years ago, people's understanding of halal was very limited and focused mainly on meat products. Today, it focuses on a wider range of consumer products and concepts.

Increased consumer awareness, but lack of standardization

Consumers are becoming more aware of the ingredients in their skincare and cosmetics products, leading to a rise in demand for halal cosmetics.

Increasingly, consumers are willing to pay higher prices for products that respect their religious beliefs. This shift in consumer behavior has encouraged the traditional beauty market to focus on developing new products with halal certification. Today, supermarkets offer a wide range of halal-compliant personal care products, including shampoo, soap, shower gel, conditioner, lotion, toner, cleanser, cream, perfume, makeup, toothpaste, and powder.

A major factor driving this change is the increasing proportion of Muslims receiving higher education, which is leading to a shift in spending toward high-quality and safe products. Muslim consumers are seeking halal integrity in pharmaceuticals, beverages, food, insurance, leather products, entertainment, and travel. A large portion of the Muslim population is gradually seeking a safe haven for different cultures and religions in their daily lives.

Millennials, in general, are showing a growing preference for natural, organic, and vegan products. Halal cosmetics and skincare are perceived as safer by all consumers—Muslims and non-Muslims alike—because the processing and raw materials used in production are natural and adhere to strict certification guidelines. This is another significant factor driving the growth of the global halal cosmetics industry.

Halal certification enables Muslims to identify genuine halal products and live in accordance with their religious virtues. However, regulations regarding the authenticity of halal ingredients vary from country to country. This factor may limit some companies' entry into the global halal cosmetics market. Obtaining a legitimate halal certification that is accepted in all predominantly Muslim countries can be challenging for cosmetics manufacturers. The lack of standardized global guidelines for halal cosmetics production presents a challenge for companies interested in capitalizing on this emerging market opportunity.

Global market potential

Globally, the current demand for halal cosmetics is estimated to be approximately200The market is growing rapidly and halal products are rapidly entering the mainstream consumer market. The halal cosmetics market in the Asia-Pacific region appears to be a fast-growing market, accounting for75%Countries with large Muslim populations, such as Malaysia, Indonesia, India, Bangladesh, and Pakistan, are expected to see high demand for halal cosmetics as socioeconomic conditions improve.

Malaysia has been investing heavily in various emerging halal products, aiming to become a global hub for the halal industry, including halal cosmetics.Department of Islamic Development MalaysiaorWHICHAs a reliable certification body, it has gained worldwide recognition.The Middle East is another important natural market considering the high income levels of countries in the region.

More and more companies are investing in the development of halal-compliant cosmetics, including multinational corporations. For example, Colgate-Palmolive has added halal toothpaste to its product range. Some small and medium-sized enterprises in the Asia-Pacific region are also becoming major players in the halal cosmetics market.