Halal cosmetics market shows lucrative potential

The halal cosmetics market is showing strong growth potential, thanks to rising awareness of Muslim consumers about such products, according to a recent Business of Fashion article. Southeast Asia, in particular, has become the most lucrative regional market for halal beauty products because of the region's large Islamic population and increased consumer disposable income. Combine these factors with the affluent Middle East market and we have an industry that presents an attractive opportunity for cosmetic enterprises.

A Thomson Reuters report entitled "The State of the Global Islamic Economy" revealed that Muslim spending on cosmetics was worth $46 billion in 2013, accounting for about 7 percent of the global market share. The value is expected to reach $73 billion by 2019 or 8.2 percent of the world's total. A separate study by UK-based Technavio said that the global halal cosmetic market is valued at $23.4 billion in 2015. The figure is anticipated to top $45 billion in 2020, registering a CAGR of 14.3 percent.

Following the tenets of Islamic law, halal cosmetics must be free from any parts or substances from forbidden animals such as pigs and dogs as well as ingredients that are harmful to humans. The products should also be handled using only clean utensils. Because of these, more consumers who want to reduce the risk of skin irritation are preferring halal cosmetics. These include non-Muslims.

There are several halal certification bodies worldwide. In Malaysia, there are 73 recognized halal certification organizations. The UAE's Standardization and Metrology Authority's unified halal codes for perfume and cosmetics have become a reference for firms in the Middle East and other Islamic nations. Nonprofit Islamic Food and Nutrition Council of America or IFANCA certifies halal products in the US.

View a comparison table of makeup suppliers on GlobalSources.com