Halal, meaning permissible in Islamic law, is a concept typically associated with food, but consumers—both Muslim and non-Muslim—are caring more and more about what goes on their bodies, not just in them, which is leading to steady growth in the Global Halal Cosmetics and Personal Care Market.
Even with the market displaying a CAGR of more than 13 percent, it’s still very much an uphill battle for this relatively new industry. Even with such strong projected growth, the halal cosmetics industry has some serious challenges to overcome.
Highly Fragmented Market
There is huge disparity in the demographic of halal cosmetic consumers. Income level, location, ethnicity and religion are all major factors that can impact a consumer’s knowledge of and access to halal products.
Lack of an Authentic Certification Body
There is no overarching organization that governs halal certification for cosmetic products, leading to various countries developing their own standards. Additionally, different sects of Islam have their own definitions of Halal so developing standards has been a stunted process.
Difficulty Maintaining the Integrity of Halal Cosmetics and Personal Care Products
In order for a product to be considered Halal, it must adhere to the following:
- Does not contain animal ingredients
- Does not contain alcohol
- Is not tested on animals
Stringent enough conditions, to be sure, but halal isn’t just about the ingredients that go into various products, it’s also about the handling of said products all the way down the supply chain. This means that vendors must ensure that any certified halal products are prepared and packed according to Islamic law and not contaminated by any Haram, or prohibited, products.
The Good News for Halal Cosmetics and Personal Care Products
These challenges are no small beans for manufacturers, vendors, and consumers to overcome. But while they seem daunting, they are still trumped by some significant growth drivers.
The leading reason for market growth is also the most obvious one— the growing Muslim population worldwide. More Muslims means more awareness of, and demand for, halal products, which, in turn, leads to manufacturers and vendors offering more of these products. As more products are seen on the shelf, this leads to further awareness of these products across all demographics.
It seems a bit circular, but this cycle is one of the reasons for such strong projected growth in the market. Furthermore, while the bulk of the halal cosmetics and personal care market is still driven by the Muslim population, the products are being consumed more and more by people from all religious and ethnic backgrounds.
Halal cosmetics are generally regarded as being safe, high quality and free of animal by-products, and thereby certifiably vegan and a great option for the health and environmentally-conscious. And with more standardized accreditation agencies emerging, consumer confidence in certified halal products is increasing. All these factors are combined are leading to a very strong market outlook over the next four years.
