Halal cosmetics are beauty products that are composed, produced, and made up of materials that are allowable under Islamic law. They are referred to as halal, an Arabic term that means permissible or acceptable.

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Ingredients originating from pigs, carrion, blood, human body parts, predatory animals, reptiles, and insects, among others, are prohibited in halal cosmetics. To be deemed halal, cosmetic materials originating from acceptable animals must be slaughtered according to Islamic law.Β 

Hygiene and purity must be maintained at all times during the preparation, processing, manufacturing, storage, and transportation of halal cosmetic items. A focus is placed on the lack of grime. The purpose of halal certification is similar to the goals of other quality assurance methods.

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Halal cosmetics being cruelty-free and vegan, its popularity is rising not just among the Muslim population, but globally, and is especially getting popular among the Millennials. This growing popularity has played a crucial role in promoting the market innovation. Efforts by leading players to advertise their novel goods, and create a firm footing in the competitive environment, are predicted to drive stable expansion in the coming years.

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Global Market Size and Growth Forecast

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As perΒ the Future Insight Market report, the Halal Cosmetics MarketΒ is expected to develop at a CAGR of 11.6% between 2021 and 2031.

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The Muslim community has evolved as a significant consumer base, with unexplored cosmetic product areas and increased per capita expenditure. Growing public awareness of the usage of porcine-based substances in cosmetics, preference for cruelty-free cosmetic products, is leading to a trend toward Halal-certified goods, even among non-Muslims. Apart from that, rising environmental concerns have fueled the growth of veganism, which is also predicted to influence and modify future trends in halal cosmetics.

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Major consumption markets for Halal cosmetics

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Major halal cosmetics markets include the United Arab Emirates, Indonesia, the Kingdom of Saudi Arabia, Turkey, India, and Malaysia.Β 

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South Asia is now leading the worldwide market and is expected to remain so for the length of the projected period. Malaysia’s growth has been aided by a growing focus on sustainability and increased demand for cosmeceuticals. In India, celebrity impact and social media motivation has enhanced brand awareness in the country, allowing start-ups to invest and maximize their potential. Higher demand in the market requires an enhanced supply chain, logistics, and marketing strategy.

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Halal cosmetics and personal care products are progressively making their way beyond regional borders. Germany is gradually adopting a cruelty-free society, increasing in demand for halal cosmetics in the beauty and personal care industry. Although Germany is the European Union’s second-largest Muslim country after France, the consumption is nascent due to a lack of awareness of halal cosmetics available in the market.

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Vegan beauty and body products are gaining popularity among customers in the U.S. Manufacturers are seizing this trend as a chance to create a cruelty-free brand that will appeal to a wider audience.Β 

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Major growth pockets for Halal cosmetics – by categories

The demand for Halal cosmetics is on the rise. Various cosmetics and makeup items that are halal certified and lawful to use according to Islamic law are being introduced by new, inventive businesses. To meet the demands of ingredient-conscious customers, leading players are managing halal labeling and certification very well. For instance, Amara Cosmetics is a halal-certified firm that makes and packages cosmetics in California that are approved by the Islamic Food and Nutrition Council of America (IFANCA) and follow Islamic law.

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Another key segment is Halal makeup which is predicted to attain a market share of around 41.6% by 2031. Sustainable, natural, vegan, and organic makeup products have already entered the global market. Halal makeup is expected to have a high acceptance and penetration rate, both in terms of volume and value soon.Β 

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What will be the most common sales channel by 2027 for halal cosmetics?

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E-Commerce has redefined commercial activities around the world. The pandemic and lockdown effects have tipped the involvement of e-Commerce across all industries. There is a lot of opportunity for manufacturers and online services to work together to offer greater engagement to consumers. Halal cosmetics brands can partner with online forums and portals to understand what consumers are looking for and cater to their products accordingly. Additionally, this will help build word-of-mouth publicity for brands. In return, these online portals will benefit by associating with a brand that consumers recognize and this will help them reach a larger audience.

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Main market drivers

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The Muslim-dominated countries will continue to be the pillars of the rapidly growing halal cosmetics market. Besides this, the increasing awareness among the younger generation regarding the availability of halal color cosmetics is driving the global halal cosmetics market. Improving product quality and optimum pricing is also majorly influencing purchase decisions. The drive towards veganism and environmental concerns will encourage adoption and reshape the halal cosmetics market throughout the forecast period until 2031. Innovation in sales channels notably eCommerce, but also D2C channels is assisting businesses considerably increase their sales volume.

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Conclusion

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The notion of developing halal cosmetics entails carefully obtaining halal components, following halal procedures throughout the production process, and verifying that product performance adheres to Islamic traditions. To determine halal status and encourage market acceptability not only among Muslim customers but also among non-Muslims, the use of scientific methodologies in the production of halal cosmetics is being improved. Halal cosmetics go beyond only religion since they involve extensive research to provide a product that is safe, effective, pure, and sensitive to the environment as well, as a result of which the halal cosmetics market is expected to see a major growth spurt by 2027.

 

Author Bio: Sneha Varghese, Senior Research Consultant at Future Market Insights

Sneha is an experienced Research professional and Senior Research Consultant at ESOMAR-certified market research and consulting firm Future Market Insights (FMI). FMI is headquartered in Dubai, with offices in the US, UK, and India. MarketNgage is the Market Research Subscription Platform from FMI that assists stakeholders in obtaining in-depth research across industries, markets and niche segments. You can connect with Sneha on LinkedIn.

Future Market Insights (FMI), is an ESOMAR-certified market research and consulting market research company. FMI is a leading provider of market intelligence and consulting services, serving clients in over 150 countries; its market research reports and industry analysis help businesses navigate challenges and make critical decisions with confidence and clarity amidst breakneck competition.Β Now avail flexible Research Subscriptions, and access Research multi-format through downloadable databooks, infographics, charts, and interactive playbook for data visualization and full reports through MarketNgage, the unified market intelligence engine powered by Future Market Insights. Sign UpΒ for a 7 day free trial!

by Richard McKeon