Halal Cosmetic Products Market, by Product Type, Distribution Channel

Halal stands for lawful or permissible in Arabic language. Halal cosmetics products are gaining popularity among consumers as they offer excellent advantages over most conventional cosmetics products. For instance, being alcohol free, halal cosmetics are less likely to irritate sensitive skin. Moreover, halal cosmetic products are not tested on animals and completely based on health and ethical benefits.

Consumers are shifting their preference towards halal cosmetics, owing to increasing awareness regarding harmful effects of synthetic cosmetics such as skin allergy, respiratory distress and various others. Also, increasing demand for halal cosmetics in South East Asian countries such as Indonesia and Malaysia and marketing activities by key players to tap potential market into Middle East are driving growth of the global halal cosmetic products market.

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Regional government cosmetics standardization authorities have executed strict regularity requirements on halal cosmetics. For instance, in 2017, Dubai Central Laboratory launched a new testing services in order to verify halal cosmetics for their quality and safety. Such regulatory requirements are a major challenge for small and medium scale cosmetics manufacturers. Furthermore, lack of awareness regarding halal cosmetics and dominance of other cosmetic products in the market is retraining growth of the global halal cosmetic products market.

Among product type, skin care segment held a dominant market share in 2016 and the segment is projected to lead the market over the forecast period. Increasing awareness regarding harmful effects of cosmetic ingredients such as alcohol, sulphates is shifting consumer preference towards natural skin care products, which is fueling growth of the for halal skin care products.

Among distribution channel, online stores are projected to be the fastest growing segment over the forecast period. According to India Brand Equity Foundation Report (IBEF), in 2016, over 62% of young consumers in major economies prefer online stores for buying beauty & grooming products. Moreover, ease of access and reliable services of giant online retail stores such as Alibaba, Amazon, and Flipkart are playing important role in growth of distribution channel segment in the market.

Global Halal Cosmetic Products Market Outlook:

  • Asia Pacific accounted for major market share in global halal cosmetic products market in 2016, owing to presence of key players in the Asian economies along with bulk availability of raw material, the region is projected to retain its dominance in the near future. In Asia Pacific, the personal care industry is gaining major traction due to increasing demand for cosmetics in China, India, South Korea, and ASEAN countries. According to International Trade Administration 2016 Report on Asia Personal Care and Cosmetics Market, China is projected to become largest market for cosmetics globally in next five to ten years. Moreover, in 2015, Indonesian government passed a new Halal regulation under which most of the cosmetics products are recommended to be Halal without containing alcohol or animal ingredients. Such factors are fueling growth of the Asia Pacific halal cosmetic products market.
  • As Halal cosmetics products meet the Halal regulations in Middle East, they are gaining major traction among Middle East countries such as Saudi Arabia, UAE, and various others. Moreover, Halal cosmetics standardization authorities such as Emirates Authority for ??standardization and Metrology (ESMA) have established a special ‘Emirati System’ for control of halal products and are supporting global cosmetic manufacturers to get halal accreditation through optimal model for halal certification.

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Key players in Global Halal Cosmetic Products Market:

Major players in the halal cosmetic products market include Amara Cosmetics Inc., The Halal Cosmetics Company, Talent Cosmetics Co. Ltd., PHB Ethical Beauty Ltd, Clara International Beauty Group, Sampure Minerals, and IBA Halal Care among others.

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