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september-october. 2019 | @Halal
Halal Cosmetic Product Market – Growth Rates, by Region, Global, 2018
Growth Rates By Region
High
Mid
Low
anticipated to be the fastest-growing prod-
uct segment of the halal cosmetics market
over the forecast period. Beauty products is
projected to be the second-largest segment
and is said to register a CAGR of 12.5 per cent
from 2019 to 2025. Middle East & Africa is the
second-largest regional market after Asia and
was valued at US$4.04 billion in 2018. Since
Muslims constitute a major part of the popu-
lation of the region, the mainstream cosmetic
industry is pushed to fulfil their needs.
Additionally, India ranks third in the world
because of its high Islamic population as well.
Rapid urbanisation and growing standards
of living have boosted the halal cosmetics
market in the country. Apart from the domes-
tic market, India is also considered to be the
hub of exports for halal products from UAE,
Bangladesh, Saudi Arabia, and Malaysia.
Why Halal Cosmetics?
Growing demand for Halal-certified and
Shariah-compliant products is boosting the
market growth. Despite the production costs
of halal cosmetics being usually higher than
regular products, consumers are willing to
pay extra due to their strong religious beliefs.
Majority of the Muslim populated countries,
such as Pakistan and Arab countries, are
developing price sensitive economies.
Regional manufacturers have therefore
developed small packaging products at lower
costs to avoid one-time investments.
Limitations and Restrictions
Although there is an ever-growing demand
for halal products in the Middle East, there
is an absence of complete regulation system.
When over 95 per cent of the population in the
region are Muslims, the general consensus
becomes this: ‘If it is sold here, than it is halal.
Why the need for strict regulation and certifi-
cation?’ This sets the course for major Muslim
countries to not be bothered by regulation for
halal products, and may hinder the need for a
global regulation system for halal.
Malaysia and Brunei has established a
regulatory system that promotes and pro-
duces halal products already on hand, and
there have been a lot of initiatives taken by
different Islamic countries to integrate the
halal industry. For instance, Malay Chamber
of Commerce Malaysia (MCCM) built a mar-
keting centre in Dubai to help the growth
of such products and pave opportunities for
manufacturers to advertise their portfolio.
However, since halal guidelines also vary
from country to country, manufacturers find
it difficult to adhere to a standardised set of
guidelines, which affects the sale of the prod-
ucts, thus failing to attain halal certification.
This is expected to restrain the growth of the
global halal cosmetics market.
In an effort to attain halal certification, the
manufacturers have to ensure appropriate
ingredients, manufacturing process, and
production process, which incur high cost
in the entire supply chain. Moreover, heavy
investments in R&D to differentiate halal
products to ensure effective introduction in
untapped markets is expected to limit the
market growth as well.
Having said that, there are other ways in
which the market for halal cosmetics are
being indirectly expanded and extended. Eco
trail, an Indian company and UK-based PHB
Ethical Beauty offer products that are not only
halal-certified but also cruelty-free and free
from harmful substances. This trend is being
followed by leading global brands, such as The
Body Shop and Forest Essentials because of
how it appeals to non-Muslims as well. This
in turn, helps halal-cosmetics to be more
understood and accepted by non-Muslims,
and will ultimately spread back towards
Muslim consumers.
Potential market expansion
The Southeast Asian region is projected to
witness the most lucrative growth over the
forecast period. Southeast Asia is the largest
production region contributing to nearly 39
to 41 per cent of the market share. Due to the
large population and low labour cost, there
are many Original Equipment Manufactures
(OEM). They provide a wide range of services
for many famous brands with lower process-
ing cost.
Factors such as rise in spending on per-
sonal care products, awareness regarding
the hazards of transdermal cosmetics, and
demand for eco-friendly cosmetics have
fuelled the product growth in this regional
market. Cosmetics companies present in this
region are trying to consolidate their position
by offering a wider range of products.
Halal personal care products in the market
today include shampoos, conditioners, bath
Halal cosmetic means it is
free from animal-derived
ingredients (e.g animal
fats, placenta, etc) as well as
contents which are harmful
to health and have not been processed
using instruments contaminated with
impurities such as blood, urine and
faeces. With such elements in place, some
halal-certified beauty products also carry
vegan, organic, cruelty-free or ethical
tags and certifications, according to
industry standards."
and shower gels, cleansers, creams, lotions,
talc, baby powders, toners, perfumes, eau de
colognes and oral care products. In the future,
the production and consumption is esti-
mated to continue developing with a stable
growth rate. To meet the large and increasing
demand, more and more
manufacturers will go into
Global Demand of
Cosmetics by Segmentation this industry indefinitely.
Companies are leveraging
the reach of social media to spread
awareness among customers
Others
and to connect with their
(Oral Care,
Fragrances
target audiences especially
and Deodarants
young adults and female
16%
consumers.
The demand for halal
Hair Care
Skin Care
cosmetics
is expected
10%
40%
to witness the highest
growth rate during the
forecast period, owing
to rise in purchasing
power of the growing
Muslim
population and
Makeup
desire of young Muslim
34%
women to associate their
interest in fashion and makeup
with Islamic loyalties. These fac-
tors create lucrative opportunities for
the multinational players operating in the
global halal cosmetics market, especially in
countries such as Saudi Arabia, Iran, UAE,
Malaysia, and Indonesia.
Sources and reference: Arcognizance, Modor Intel-
ligence, Grandview Research, VCNewsnetwork,
Credence research, Market Research, Market
Intellica, Salam Gateway, HDC, Matrade.