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Even for cosmetics, personal care and toiletries, the interest in halal products is on the rise globally, and particularly in Southeast Asia. A report from IMARC Group puts the global halal market size for cosmetics at USD30.3 billion in 2022. It expects the market to reach USD53.2 billion by 2028, growing at a CAGR of 9.4% during 2023-2028.
Given the rigorous process and steps that halal products need to go through, a halal certification is being equated with higher quality. With consumers now more aware of the harm artificial chemicals can do on skin over time, they opt for products with skin friendly ingredients. This is a leading driver for market growth.
But what does it take to produce halal cosmetics? Primarily, there should be the specific knowledge of what consumers consider halal and non-halal ingredients. That refers to formulations that exclude animal-derived ingredients (but note that some are permissible). It also requires that all the processes involved – from ingredient/product preparation right up to transport – are compliant with halal standards. This is basically ensuring that halal certified products have kept their hygienic and pristine condition intact as they pass through all the stages before reaching the consumer.
As most beauty and cosmetic products contain animal derived ingredients, such as beeswax, gelatin from pork or lanolin, and other compounds, manufacturers of halal products must use alternatives, such as vegan ingredients, or those from plant parts that are produced by halal standards.
In Indonesia, there is room for improvement in the halal sector, not just for cosmetics, but for other products. Both production and consumption of local halal products are relatively below what government sees as satisfactory, given the country has the largest Islamic population.
In a news report about Indonesia’s target of becoming the centre of global sharia economy, Hery Gunardi, the president director of PT Bank Syariah Indonesia Tbk (BSI), said: "Indonesia has big potential in halal industry. This is supported by the fact that more than 229 million of its population are Muslim, which equals to 87.2% of the country's total population. The halal food industry has the potential up to USD164,76 billion. Further potential can be found in clothing with USD20 billion, halal media USD9,52 billion, halal tourism USD10,48 billion, health industry USD4,76 billion, halal cosmetics and hajj and umrah USD3,81 billion.
According to the Middle East North Africa Financial Network, Inc. (MENAFN), Thailand has the largest sector for halal skincare and colour cosmetics in Southeast Asia, and is made up of both local and international cosmetic brands. It said the country’s cosmetics and toiletries industry will grow at a CAGR of 6.0% from USD6.15 billion in 2019 to USD8.57 billion in 2024.The demand for halal cosmetics – which are known to be made of safer and natural compounds and ingredients – is fuelled by awareness of the negative impact of artificial or chemical additives.
Apart from this, a leading driver for halal products is interest in personal grooming, which has given rise to personal care products specifically for men, as well as innovations in hair care and fragrances, according to a report by Technavio.
Sources:
https://menafn.com/1102829318/Keeping-it-Halal-with-Thai-Cosmetics
https://www.technavio.com/report/halal-cosmetics-and-personal-care-market-industry-analysis
https://www.imarcgroup.com/halal-cosmetics-market
