SGIE 2022 Report: Halal Cosmetics | Salaam gate

Cosmetic spending by Muslims increased 6.8% in 2021 to $ 70 billion and is expected to reach $ 93 billion in 2025.

Sales of halal cosmetics have grown in East Asia at a faster rate than any other market, driven by Indonesian brands across the board as both small independent start-ups and established players expand their presence.

Such growth during the challenging operating environment presented by the COVID-19 pandemic reflects the growing potential of halal cosmetics. This is evident in Muslim-majority and non-majority countries as awareness of halal grows: Halal-certified cosmetics do not contain haram (illegal) ingredients and are increasingly cruelty free and vegan.

DinarStandard’s State of the Global Islamic Economy Report 2022 estimates that Muslim spending on cosmetics increased 6.8% in 2021, from $ 65 billion to $ 70 billion, and is expected to grow a further 7.2% in 2022. $ 75 billion and reach $ 93 billion in 2025.

See – SIE Infographic 2022: Halal Cosmetics

“Halal cosmetics is the fastest growing sector among the halal products sectors (food, pharmaceutical and fashion) with a compound annual growth rate (CAGR) growth of 7.4% by 2025,” said Iman Ali. , Research Analyst at DinarStandard.

“Consumers are increasingly demanding cruelty free, organic, natural and vegan-certified cosmetics and are realizing that halal-certified products include these properties. This has been a key factor for brands to adopt greener approaches and be racially inclusive in product offering and marketing. “

India remained the largest Muslim cosmetics consumer market last year with Muslim spending of $ 6.27 billion or 9% of global Muslim spending in the sector.

The member countries of the Organization for Islamic Cooperation (OIC) imported approximately $ 13 billion in cosmetic products in 2020.

“Odorous substances and make-up or skincare are the cosmetic products most imported by the OIC in value, accounting for almost 56% of imports. Over-the-mask products (such as eye makeup and hair care) have gained more attention since the pandemic, ”said Ali.

Major ingredient manufacturers are achieving halal certification for their wallets, while the growing demand for vegan cosmetics benefits the development of halal cosmetics. Hourglass Cosmetics and Unilever have created a vegan alternative to carmine for lipstick. Carmine is derived from insects and is considered haram, as is boletus, another common ingredient used in lipsticks.

East Asia has consolidated its position as the epicenter of halal cosmetics. South Korean cosmetics manufacturers and brands, riding on K-beauty’s global popularity, continued to ensure halal certification, mainly with an eye on exports to OIC countries; from East Asia to Central Asia and the Middle East.

Japanese brands are also entering the halal cosmetics segment.

Indonesia’s 225 million Muslim population is a key factor in halal cosmetic growth, driven by its young population and the country’s strategic move to develop an Islamic economy by putting in place mandatory halal certification requirements in next years.

Indonesian brands are expanding their portfolios and their global presence. There have also been moves to expand halal cosmetics ranges to include men with Indonesian Paragon, owner of the country’s largest halal brand Wardah, which has launched its Kahf line.

Gulf Cooperation Council (GCC) countries also saw significant expansion in the beauty market, in line with the region with the world’s highest per capita spending on cosmetics and fragrances. Halal cosmetics brands are launched and newcomers are expanding through links with e-commerce platforms and outlets.

Cosmetics regulations have been tightened in many markets, while the industry itself calls for stronger measures against animal cruelty and the impact of cosmetics on the environment.

Ali said halal cosmetics brands are capitalizing on this trend, also reflecting consumer demand for inclusiveness and diversity in product offering and marketing.

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