Halal cosmetics are those cosmetics products that are produced without any use of animal and alcohol ingredients. Basically halal cosmetics are free from any products such as animal parts or that are not slaughtered as per the Sharia law. These products are gaining huge demand especially across Muslim regions such as UAE, Indonesia, Malaysia, Saudi Arabia, and Turkey as these products are safe for Muslims as well as non-Muslim consumers. However, the Asia Pacific region is gaining strong demand due to the high presence of the Muslim population in the region. Halal cosmetics are safe to use and do not cause any health-related diseases such as cancer and genital abnormalities or other long-term effects on health. Halal cosmetics are considered as the ideal and best alternative to other cosmetic products that are produced from animal and alcohol ingredients.
The global Asia Pacific halal cosmetics market is estimated to account for around US$ 2.0 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 10% during the forecast period (2019-2027)
The growing need for personal grooming products among the population of the Asia Pacific region is augmenting the growth of the Asia Pacific halal cosmetics market. Rising awareness regarding personal hygiene and a growing sense of fashion among both women and men is also expected to propel the market growth over the forecast period. Moreover, increasing penetration of new brands in the region is also projected to foster market growth.
Growth in number of non-Muslim consumers who prefer safe, high quality, and ethical products is providing major growth potential to the market especially in China and Japan countries. Moreover, rising concerns overuse of animal-derived ingredients such as collagen and gelatin in cosmetics products and testing on animals is raising demand for halal cosmetics across both Muslim and non-Muslim consumers. This is expected to augment the market growth.
Lack of awareness regarding the benefits of halal products among the population of the Asia Pacific region is projected to hinder the market growth. According to the Coherent Market Insights analysis, India has only one halal cosmetics brand, Iba Halal Care, which was introduced in 2012. This fact is indicative of a lack of awareness regarding the concept of halal cosmetics even in countries with a potential market for them.
On the basis of the type, the color cosmetic segment dominated the Asia Pacific halal cosmetics market in 2018 with a 37.8% of market share in terms of value, followed by skin care and hair care.
Increasing approval of halal products by regulatory authorities is projected to augment market growth. For instance, in January 2018, DSM’s Personal Care & Aroma Ingredients business unit, one of the industry’s leading suppliers to the personal care, home care and fine fragrance markets, announced that following audits at its production sites in Vouvry and Aesch, over half its personal care portfolio is now certified as halal. The halal certification is recognized by major Islamic authorities around the world.
The growing adoption of smart strategies among major players in order to expand their foothold in the market is expected to augment the market growth. For instance, in February 2019, CIMB Islamic Bank Bhd and local beauty brand SimplySiti have announced a collaboration to enabling SimplySiti to expand its halal beauty care business beyond Malaysian borders. The homegrown brand will also leverage the end-to-end support of the CIMB-ASEAN Halal Corridor and CIMB’s strong regional network, to meet the demand for quality halal beauty, cosmetics, and skin care products across the region.
Key players operating in Asia Pacific halal cosmetics market includes INKIA, Martha Tilaar Group, Wipro Unza, Clara International, Ivy Beauty Corporation, Sdn Bhd Overview, Paragon Technology & Innovation, and Brataco Group of Companies
Few Recent Developments
Martha Tilaar Group