Halal cosmetics represent a burgeoning niche in the beauty industry, driven by ethical and permissible production principles under Islamic law and specifically aimed at Muslim consumers.
The demand for Halal cosmetics is driven by a growing global Muslim population, with over 2 billion and representing almost 28.7% of the world’s population.
This represents a vast, untapped market in many countries. Euromonitor identifies Halal cosmetics as targeting one of the fastest-growing consumer groups worldwide.
The global Halal cosmetics market was valued at $42.39 billion in 2023 and is expected to reach $47.76 billion in 2024. By 2032, it is projected to grow significantly to approximately $115.03 billion. Exhibiting a compound annual growth rate (CAGR) of 11.61%. In 2023, Asia Pacific dominated the market with a substantial market share of 64.87%.
Understanding Halal
The term “Halal” means “permissible” in Arabic and is used to designate products and practices under Islamic law. While commonly associated with food and drink, the concept of Halal also extends to cosmetics and personal care products.
Halal cosmetics are formulated without prohibited (Haram) ingredients derived from sources such as pork or alcohol, adhering to specific ethical and cleanliness requirements throughout their production, packaging, labelling, distribution and logistics processes.
This comprehensive approach ensures that from the initial stages of ingredient sourcing to the final sale of the product, the full product life cycle complies with Halal standards. By maintaining this systematic adherence, Halal cosmetics uphold their integrity and fulfil religious standards throughout the entirety of their supply chain.
According to the State of the Global Islamic Economy Report 2023/2024, Muslim consumers spent about $2.29 trillion in 2022 across various sectors, including cosmetics. This growing demand highlights the opportunity for brands and manufacturers to cater to one of the fastest-growing consumer markets globally.
As more consumers seek products that align with their ethical and religious beliefs, the market for Halal cosmetics expands, offering several opportunities:
• Market Expansion: Halal certification opens doors to markets in Muslim-majority countries and among Muslim consumers worldwide, providing a significant opportunity for growth in the cosmetics industry.
• Consumer Trust and Loyalty: Halal certification builds trust and loyalty among Muslim consumers who prioritise adherence to their religious principles. This trust can translate into brand loyalty and increased market share.
• Ethical Appeal: Halal cosmetics appeal to a broader audience beyond Muslim consumers, including those who prioritise ethical and quality beauty products.
The rigorous standards for purity and ethical sourcing resonate with conscientious consumers globally.
Regulatory Requirements
Regulatory requirements for Halal cosmetics vary by region but generally follow a comprehensive certification process covering all aspects of the product lifecycle from sourcing to distribution.
There are approximately 57 global certification agencies authorised to certify products according to Halal cosmetics standards. Certification bodies, such as the Islamic Services of America (ISA) and other local and international entities, rigorously review ingredients and inspect production facilities to ensure compliance with Halal standards.
In countries with significant Muslim populations, such as Indonesia and Malaysia, regulations are particularly stringent. Since 2019, Indonesia has introduced mandatory Halal certification and labelling rules, which have set a precedent and opened new channels for market growth. The Department of Islamic Development Malaysia (JAKIM) is a prominent certifying body within Malaysia ensuring cosmetic products meet Halal standards.
Certification ensures that products meet the required standards of purity, safety and ethical sourcing. Key elements considered during certification include:
• Ingredient Sourcing: Ingredients must not come from prohibited (Haram) sources. For example, Halal standards strictly prohibit pork and its derivatives. Animal-derived ingredients must originate from animals slaughtered according to Islamic traditions, which involve the draining of blood to eliminate toxins and potential diseases.
• Manufacturing Process: The entire production process must be free from contamination with prohibited substances. This includes ensuring that manufacturing equipment and storage facilities are not used for both Halal and non-Halal products without proper cleaning procedures.
• Packaging and Labelling: Products must be clearly labelled as Halal, often including certifications from recognised Halal certification bodies. Halal labelling in cosmetics extends beyond the controversial “free from” category, which includes claims such as “free from alcohol” or “free from pork products.” This transparency helps Muslim consumers make informed choices.
Adhering to Halal cosmetic standards ensures compliance with regulations in Muslim-majority countries, facilitating smoother market entry and operations. Offering Halal-certified products can differentiate brands in a crowded marketplace, appealing to conscious consumers seeking high standards of quality and ethics.
Implementation in Formulations
Implementing Halal standards in cosmetic formulations requires careful selection and sourcing of ingredients. Here are key considerations:
• Prohibited Ingredients: Alcohol and pork-derived ingredients are strictly prohibited. Even incidental contact with these substances during manufacturing is not allowed.
• Permissible Animal-derived Ingredients: Ingredients such as Lanolin and beeswax are permissible if sourced ethically. Other animal-derived ingredients such as gelatine, collagen and keratin are acceptable only if the animals were slaughtered according to Islamic traditions.
• Microbiological Ingredients: Ingredients like Hyaluronic acid, derived from microbial fermentation, are accepted under specific conditions. Manufacturers must ensure these processes do not involve prohibited substances or derivatives of pork and alcohol.
As the Halal cosmetics market continues to grow, it offers significant opportunities for brands and manufacturers to innovate and strengthen consumer trust and loyalty. These products not only satisfy the religious obligations of Muslim consumers but also align with the increasing demand for ethical choices, positioning them well for global expansion.
With Asia Pacific leading the market in 2023 with a dominant 64.87% share and a robust compound annual growth rate of 11.61%, the future looks promising for Halal cosmetics to continue their upward trajectory in the beauty industry.
References:
1. ISA Halal. (2023). A glimpse into the global Halal industry 2023. Retrieved from https://www.isahalal.com/news-events/blog/glimpse-global-halal-industry-2023
2. DinarStandard. (2024). 2024 global Halal market trends: Highlights from DinarStandard report. Retrieved from https://www.halaltimes.com/2024-global-halal-market-trends-highlights-from-dinarstandards-report/
3. Alzeer, J., & Hadeed, K. A. (2021). “Ethical and hygiene aspects of Halal food.” Trends in Food Science & Technology, 113, 208-216.
4. Golnaz, R., Zainalabidin, M., Nasir Shamsudin, M., & Mad Nasir, S. (2010). “Non-Muslims’ awareness of Halal principles and related food products in Malaysia.” International Food Research Journal, 17(3), 667-674.
5. Husain, R., Ghani, N. I. A., & Zainuddin, N. F. (2017). “Halal cosmetics: A review on ingredients, production, and certification.” Journal of Cosmetic Science, 68(1), 1-13.
6. Wilson, J. A., & Liu, J. (2011). “The challenges of Islamic branding: navigating emotions and Halal.” Journal of Islamic Marketing, 2(1), 28-42.
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