Halal Cosmetics Market is Growing Fast

The global halal cosmetics market expected to grow at a CAGR of 13.67% from 2014-2019. Many global personal care companies entering this market are manufacturing and distributing halal beauty products worldwide, as they are considered similar to vegan and organic products
 
The Global Halal Cosmetics Market  is witnessing a higher demand for safe, good quality cosmetics, which is expected to drive the market in the next four years. Since halal certification is a mark of purity, the demand for these cosmetics is expected to grow rapidly with increased awareness about the products.
 
According to Research, the global halal cosmetics market is valued at $23.4 billion in 2015 and is expected to reach $45 billion by 2020, growing at a CAGR of 14.3%.
 
Experts note that many halal brands are gaining international recognition as safe and hygienic cosmetics, which is boosting the demand for halal cosmetics.
 
The latest report emphasizes the growing demand from non-Muslim countries for halal cosmetics, which will open huge growth opportunities for market vendors. Currently, these products are widely accepted by different communities, as they are considered to be safe, high quality and prepared using hygienic procedures.
 
Experts also noted that many global personal care companies entering this market are manufacturing and distributing halal beauty products worldwide, as they are considered similar to vegan and organic products.
 
According to the CIA World Factbook, over 60%  of the population in Malaysia are Muslims, while Indonesia, at 88%, has the largest Muslim population worldwide. This arguably makes South East Asia the most lucrative regional market for halal cosmetics in the world.
 
In fact, large Muslim populations based in Asia Pacific and increased consumer disposable incomes in most of these countries, such as Malaysia, Indonesia and India, has led to high growth in the halal cosmetics market, noted on expert.
 
This, seen in combination with the affluent Middle East consumer market, makes the global halal beauty category an increasingly attractive
opportunity.
 
Sayd Farook, global head of Islamic capital markets at Thomson Reuters writes in his report, 'The State of the Global Islamic Economy 2015,' that while global Muslim spending on cosmetics was $46 billion in 2013 – 6.78 percent of global expenditure – it is expected to increase to $73 billion by 2019 and will make up over 8.2 percent of global expenditure.
 
Of this, a significant share goes to the halal segment.
 
“Given the latent demand and positive trend, opportunities exist in ingredients manufacturing and global branded concepts of organic and halal cosmetics. [There is] an opportunity for many conglomerates to take a leadership role in developing this space,” said Farook.
 
Striking a balance between faith and beauty can be tricky for some Muslim women. Unlike halal food, which is considered a must for most practicing Muslims, the use of halal cosmetics is not universally enforced in Islam. This is compounded by the fact that the niche has long been ignored or misunderstood by mainstream cosmetic brands worldwide. So, what constitutes as halal-compliant?
 
“A key aspect to understanding halal is that it is a holistic approach to life for Muslims, [rather] than just a list of ingredients that are allowed or not allowed for the followers of Islamic faith,” explained Oru Mohiuddin, senior analyst, beauty and personal care at Euromonitor International. “Halal is one of five tenets signifying morality, ranging from fard (compulsory), mustahabb (recommended), halal (allowed), makruh (disliked) and haram (forbidden).”