The fragrance market is expected to register the highest CAGR of 15.8% in the halal cosmetics market, owing to increase in demand for attar sprays among Muslim consumers. LAMEA is expected to dominate the market due to growing populations in Muslim countries such as Saudi Arabia, UAE, Kuwait, Bahrain and others; rising purchasing power, and growth in demand for personal grooming products that adhere to the Islam virtues. Asia-Pacific is expected to register a significant growth rate owing to increase in Muslim population in nations such as Indonesia, Malaysia, Singapore, and India, thereby resulting in increased halal cosmetics market size during the forecast period.
However, rules and regulations pertaining to the authenticity of a halal ingredient vary as per the countries, which is thereby expected to restrict the companies to penetrate in the halal cosmetics market. Cosmetic manufacturers thereby fail to obtain an authentic halal certification in Muslim-dominant countries. Thus, lack of global standardized set of halal-specific guidelines is a major factor that restrains growth of the halal cosmetics market.
Among product categories, fragrance is expected to have the highest CAGR during the forecast period, followed by color cosmetics. The color cosmetics segment is expected to reach $17.9 billion in 2022, for a CAGR of 15.3%. Halal color cosmetics have widespread adoption among the Muslim women population, especially among young consumers. Increased interest for makeup formulas that adhere to the religious loyalties has fueled the demand for global color cosmetic products. The demand for halal color cosmetics is expected rise due to growing purchasing power and a desire for trendy looks among consumers. Halal color cosmetic products include a broad array of products such as lipsticks, hair color, blushes, lip balms, and others. These products are widely used among the young Muslim population who are associated with fashion industry, for instance, airline hostesses and others. Muslim women are more particular about using halal color cosmetics during Ramadan pertaining to the stringent religious rules. These factors also provide lucrative opportunities to the multinational cosmetic companies to enter the halal cosmetics market. Countries such as Saudi Arabia, Iran, UAE, Malaysia and Indonesia offer potential growth opportunities for halal color cosmetics products owing to the factors such as increase in young population, high disposable income, and rise in interest in fashion and makeup trends.
In the halal cosmetics industry, LAMEA is expected to register the highest CAGR of 15.1% owing to the growth in Muslim population, especially in the Middle East, high purchasing power, and continuous demand for personal & beauty care cosmetic products among the Muslim consumers.
Key findings of the Halal Cosmetics Market report: The hair care segment generated the highest revenue in 2015, and is expected to grow at the CAGR of 14.1% during the forecast period. Personal care segment accounted for the highest revenue in 2015, and is expected to have a notable CAGR of 14.6%.With growth in demand for e-commerce sales, the online distribution sales channel is expected to grow at the fastest rate of 18.2% by 2022.
The key players operating in the market include Amara Cosmetics, Iba Halal Care, Halal Cosmetics Company, Clara International, Inika, Wardah Cosmetics, PHB Ethical Beauty, Sampure Minerals, One Pure, Mena Cosmetics, SaafSkinCare, and others.