Halal is a term often associated with food, however it covers a huge range of products, including cosmetics and personal care products that are considered permissible in Islamic law. If a product is halal approved, this means it does not contain alcohol, is not tested on animals, and does not contain certain non-permissible animal-derived ingredients.
The Halal Cosmetics and Personal Care market in the Asia-Pacific (APAC) region is currently growing at a steady rate, posting a CAGR of 15.42 percent during the period 2013-2030. In 2013, the market witnessed a huge demand for halal cosmetics and personal care products from Malaysia, followed by Indonesia and Pakistan, partly because of an increase in the Muslim population in these areas and growing awareness of halal certified products.
TechNavio analysts have narrowed down four major trends affecting the Halal Cosmetics and Personal Care Market in the APAC Region, including:
- Increased Awareness of Transdermal Penetration of Cosmetics
- Growth Prospects in E-commerce
- Emergence of Accreditation Agencies
- New Product Development
Increased Awareness of Transdermal Penetration of Cosmetics
There is increasing awareness among consumers of the fact that what you put on your skin doesn’t necessarily stay there—cosmetics can easily penetrate the skin and directly enter the blood stream. If these products contain any animal ingredients that are not permissible, then their penetration or ingestion is a major concern for Muslim end-users. Even non-Muslim users have reasons to be concerned about the quality of the products they use—generally halal products are considered to be ‘clean’ and safer for use.
Growth Prospects in E-commerce
There is huge scope for vendors in the halal cosmetics market to increase their profitability by adopting e-commerce as a business platform. As customers take to the web, many companies are focusing on the internet-savvy customer segment and moving into this retail format.
Emergence of Accreditation Agencies
Currently, the Halal Cosmetics and Personal Care Market is largely unregulated in the APAC region. But rising demand for these products is expected to prompt the formation of accreditation agencies to help monitor the quality of products and production practices. This may also drive companies in the market to implement more systematic logistics and supply chain management systems, to help ensure integrity of these products from production through distribution.
New Product Development
With an increase in awareness and disposable income, Muslims in the APAC region are demanding better and newer halal certified cosmetics, catering to different age ranges and lifestyles. One example of this is the moisture and oxygen permeable nail polish called O2M by INGLOT Inc., which abides by Islamic law and is ablution-friendly. Such innovations and product developments are expected to boost the demand for halal cosmetics and personal care products in the APAC region during the forecast period.
For more insights into this growing market, view our Halal Cosmetics and Personal Care Products Market in the APAC Region 2014-2018 report.
