The halal cosmetics market is highly vibrant, and with over 1.8 billion Muslims on the planet, it is rapidly developing. Muslims choose halal items as these items are in line with their religious views. The global halal cosmetics market is expected to grow significantly at a CAGR of more than 9.0% during the forecast period 2019-2028. Consumer awareness about the detrimental consequences of certain substances like carbon black and carcinogens, which are extensively used in cosmetics is boosting the demand for halal cosmetics.
Moreover, other factors that are augmenting the demand for halal cosmetics include product reliability, product commitment, intention to purchase halal cosmetics, faith in the product development process, environmentally friendly attitude, and several other religious convictions. However, some factors that might hinder the market growth include highly-priced products and a largely dispersed system for standardization and certification across the globe. Furthermore, halal certification authorities globally have mostly focused on halal food certification and may lack the ability or inclination to promote and certify halal cosmetics thus making customers concerned about the trustworthiness.
Increasing demand for organic and eco-friendly cosmetics
As a part of the Industry 4.0 revolution, the halal industry is taking on a new form and shape, raising the bar on old business practices. With the growing popularity of eco-friendly products across the globe, the rise of organic, vegan, and cruelty-free cosmetics has met the required standards for skin-friendly and environmentally friendly products. While these values and halal cosmetics have some overlap, halal-certified beauty products provide assurance that healthful materials are utilized and strict manufacturing and production rules based on Islamic law have been followed. To be halal certified, every ingredient in cosmetic products must be traceable. Ingredients produced from pigs, carrion, blood, human body parts, predatory animals, reptiles, and insects, among others, are prohibited.
Moreover, consumers are becoming aware of the harmful effects of compounds such as Carbon Black and Carcinogens which are extensively used in cosmetic products. This has risen the demand for naturally derived ingredients to be used in the cosmetic products, which has pushed the majority of companies to launch products with nature-inspired ingredients such as halal-certified, plant-inspired, and premium botanical ingredients coupled with multi-functional properties.
Regional growth opportunities for the market
The halal cosmetics business is poised to become a competitive force in the global trade on account of a growing consumer base and improved purchasing power. Although it is believed that western countries will begin to join up on the trend, the Asia Pacific and Middle Eastern countries have been considered the heart of the halal cosmetics movement. Being home to the majority of the Muslim population, the Asia Pacific market comprises both the large and small sizes manufacturers and retailers offering a wide variety of products to cater to a broad range of customers. Southeast Asia has seen the most development in terms of product innovation, product launches, and product adoption rates, particularly in Indonesia and Malaysia.
Europe and North America are also attractive halal markets for enterprises to tap into and generate a positive return on investment. Germany homes significant proportion of the Muslim population in the European Union and is gradually adopting a cruelty-free culture, resulting in increased demand for halal cosmetics in the beauty and personal care industry. Further, the GCC region is also offering lucrative growth opportunities to halal cosmetics manufacturers and suppliers to prosper in the market. The market for halal cosmetics in GCC is largely dominated by foreign brands such as Australia-based Inika, UK-based PHB Ethical Beauty, and India-based Iba Cosmetics among others. Large influx of foreign players in the region has awakened the local halal cosmetics players to develop their own strategy and reinforce their customer base both in local and international markets. For instance, in 2020, a Dubai-based brand named Shade M launched a halal-certified lipstick collection in the US and UK.
Market Structure and Competitive Landscape
The global Halal industry is offering a growth opportunity for personal care and cosmetics manufacturers. Brands seeking halal certification for their cosmetics and personal care products as a method to cater to their Muslim customer base are becoming more aware of this particular beauty wave. Gaining halal certification for multinational businesses or purchasing halal brands will increase market penetration and acceptance as competition will be even fiercer as established beauty companies enter the market.
International firms such as L’Oréal, Unilever, P&G, and others may have the possibility to enter the halal cosmetics market in order to meet the growing demand for halal cosmetics. Some of the key players already operating in the market are Breena Beauty, Amara Beauty, SO.LEK Cosmetics, Tuesday In Love, Inika Organic (Total Beauty Network Pty Ltd.), Ivy Beauty Corp., Clara International Beauty Group, Iba Cosmetics (Ecotrail Personal Care Pvt. Ltd.), Kolmar Korea, MENA COSMATICS CO., LTD., Sampure Minerals, The dUCk Group, Halal Beauty Market, Wardah Cosmetics, and SimplySiti among others. Market participants are employing a variety of techniques in order to prosper in this highly competitive climate; for instance,
- In 2022, South Korea-based Kolmar announced to penetrate into the Middle East and North Africa region where it would supply its halal-certified cosmetics to cater to a wide range of customers.
- In September 2021, Mikyajy – a Dubai-based cosmetic brand, introduced its first halal-certified make-up line.
- In December 2019, Biozer, a Brazilian cosmetics company based in the Amazon area, received Halal certification for its Simbioze Amazonica product line.
Key Market Segmentation
RationalStat has segmented the global halal cosmetics market on the basis of product type, gender, category, distribution channel, and region.
- By Product Type
- Skin Care
- Personal Care
- Hair Care
- Fragrances
- Beauty Care
- By Gender
- Men
- Women
- By Category
- Mass
- Premium
- By Distribution Channel
- Conventional Retail (Brick and Mortar Stores, Convenience Stores)
- Modern Retail
- Supermarkets/Hypermarkets
- Specialty and Discount Stores
- Pharmacies/Drug Stores
- E-Commerce
- By Region
- North America
- US
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Western Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- Rest of Eastern Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- South Africa
- Turkey
- Rest of the Middle East & Africa
- North America
Research Methodology
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
Secondary Sources
- Annual reports, company filings, investor presentations, industry associations, product catalogs and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for cosmetic products manufacturers, halal cosmetic products manufacturers, cosmetic products suppliers and dealers, cosmetic packaging companies, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global halal cosmetics market is expected to grow at a CAGR of over 9.0% during the forecast period 2022-2028.
Global halal cosmetics market was valued at around US$ 25.0 billion in 2021.
Growing adoption of halal fragrances is the major trend in the market.
The Asia Pacific is dominating the market in 2021.
Major companies operating in the global halal cosmetics market are Ivy Beauty Corp., Clara International Beauty Group, Iba Cosmetics, Kolmar Korea, Sampure Minerals, The dUCk Group, etc.