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Industry Talk
@ Halal | November-December . 2021
BY AZMI ABD AZIZ Technical Assoc Director , Global Haltech
Adoption
Introduction
THE GLOBAL halal cosmetics market size will increase as the global Islamic population is willing to pay premium prices for halal-certified beauty products . It will continuously drive product demand .
Growing awareness of the use of cosmetic products is also likely to be one of the key factors driving the market .
The global increase in Muslim populations and purchasing power has created a new demand for halal cosmetic product development . Since Muslims constitute a considerable part of the world population , the mainstream cosmetics industry focuses on developing halal-certified products .
Halal is defined as legitimate or acceptable based on Islamic core values . Muslims are expected to avoid using food , products and services which contain elements of alcohol , riba , and animal remains , especially in cosmetics .
The current global Muslim is 1.8 billion , and it is estimated that by 2030 Muslims will constitute 27.5 per cent of the world ’ s population ( Reuters & Dinar Standard , 2018 ).
Women in Malaysia are regarded as the most significant indicator of social transformation and development in society . As their status increases in the community , their economic options and resources also increase .
It means women can drive consumer spending in Malaysia . Although halal cosmetics have a substantial market share , halal cosmetics and personal care products are scarce .
Today , cosmetics and personal care products are an essential element of our everyday life . Hence , Muslim consumers are confined to consuming non-halal cosmetics produced by non-Muslim manufacturers ( Abd Rahman , Asrarhaghighi , & Ab Rahman , 2015 ).
Most of these products contain elements of pork , porcine DNA and proteins , oils , fats , lards , gelatin and other substances that may render a product non-halal ( BEDB , 2018 ).
Non-Halal cosmetics
The manufacturers of non-halal cosmetics and personal care products lack religious knowledge , which indicates that despite avoiding the contamination of products by non-halal ingredients , these manufacturers cannot assure 100 per cent halalness of their products .
In short , there is increasing scepticism among Muslim consumers towards these global cosmetic brands ( Mukhtar & Butt , 2012 ). It is also misconstrued that halal cosmetics are manufactured and offered to Muslim consumers only . Therefore , a sizeable non-Muslim consumer base is not engaged in halal cosmetic products . of halal cosmetics Mainstream cosmetics industry focusing on developing halal-certified products
A woman ’ s beauty is a treasure beyond price .
Halal lipstick products .
Promotional activities
Companies in the market are spending big amounts on promotional activities spreading awareness on the benefits of using halal beauty products . There has also been the promotion of prestigious cosmetic brands in magazines in Malaysia .
Some prominent industry participants are Martha Tilaar Group , Clara International , Wipro Unza , Paragon Technology and Innovation and Ivy Beauty Corporation Sdn Bhd . Other manufacturers are Saaf Skincare , Prolab Cosmetics , TALENT Cosmetic Co Ltd and PHB Ethical Beauty .
Factors affecting the industry
In the Malaysian context , halal cosmetics have come a long way since their humble beginnings nearly four decades ago ( Mohezar , et al ., 2016 ).
According to Halal Industry Development Corporation ( 2014 ), there were 100 halalcertified registered cosmetics and personal care companies in Malaysia whose net worth was US $ 800 million with an average growth of 24 per cent in the US $ 1.72 billion cosmetics industry .
The leading halal cosmetics producers are Wipro Unza , Southern Lion , Johnson & Johnson , SimplisiSiti , Clara International , Eversoft Safi , Silky Girl and Shokubutso ( Low , 2017 )
The demand for halal cosmetic products has gained substantial momentum in the modern millennium . The increasing Muslim population and consumers ’ demand for safe , hygienic , and human body-friendly cosmetic products are tipping points for rising demand .
The halal cosmetics industry can cater to the needs of its customers due to several factors and has shown penetration among Malaysian consumers .
Halal products ’ consumers show a high level of loyalty towards halal brands , and these brands are not expected to be affected due to an economic crisis ( Yousef , 2010 ; Ireland & Rajabzadeh , 2011 ).
The consumer base for halal products such as cosmetics is not limited to Muslim consumers as halal cosmetics are perceived as organic , safe and clean to use by non-Muslim consumers ( Hornby & Yucel , 2009 ; Alam & Sayuti , 2011b ).
In halal cosmetics , Sungkar ( 2008 ) found that the concept of halal is popular in Malaysia compared to the Middle East .
The assurance of halalness in cosmetics indicates the role of a certification authority such as JAKIM in Malaysia to control and monitor halal cosmetics production , labelling , and promotion .
Halal cosmetic products originating from Muslim countries or within Muslim territories can shape consumer trust more quickly than foreign brands from non-Muslim countries .
Consumers who are conscious about their appearance may have a strong awareness of beauty products , enabling them to be discerning and enhance their social standing . Muslim consumers appear to adopt halal cosmetics based on the level of their innovativeness .
Summary
In conclusion , awareness and the importance of safe , hygienic , and friendly to the human body cosmetic products enhance a significant positive impact on halal cosmetics acceptance . Religiosity creates recognition on the awareness and understanding and influences the acceptance .
Conventional cosmetic products often contain keratin , albumin and placenta , which should not be allowed in halal cosmetics . These components may have certain religious exceptions . However , cosmetics contaminated with any non-halal ingredient may result in a lack of customer satisfaction and acceptance .
Cosmetic and personal care companies should take advantage of the substantial opportunities in halal markets by tailoring consumer needs with the right marketing strategies .
Understanding the consumer ’ s needs will help marketers and retailers survive and compete in the competitive halal retail industry .
Hence , it would be helpful to the survival of marketers , retailers , and newcomers to adopt the right strategies . They should also learn from past mistakes , and this can further help develop the halal industry .