Halal Cosmetics Market: Growing Demand among Non-Muslim Consumers

Halal cosmetics have emerged as a popular choice for consumers seeking personal care products that align with their values and beliefs. These products are made with permissible ingredients according to Islamic law, meaning they do not contain any animal products derived from prohibited animals or alcohol and are processed in a way that does not compromise their purity. These products are not only meant for Muslims but also for non-Muslims who are concerned about the safety, quality, and ethical aspects of the products they use. According to Inkwood Research, the global halal cosmetics market is expected to generate over $63 billion by 2032, surging with a 9.03% CAGR during the forecast period 2023-2032.

According to the State of the Global Islamic Economy Report published for 2020-2021, Muslim consumer spending on halal products is expected to reach $2.4 trillion by 2024. However, a significant rise is evaluated in the trend of halal cosmetics adoption among non-muslims in the past few years.

Why is Halal Cosmetics a Thriving Choice Among Non-Muslims?

• Healthier Alternative for Chemical-Based Products

Halal cosmetics are generally considered to be safer and healthier as they are free from substances such as alcohol, animal-derived ingredients, and other chemicals that may cause skin irritation or allergies. Halal cosmetics are also cruelty-free as they are not tested on animals, a major concern for many consumers against animal testing.

In 2018, L’Oréal, a prominent global cosmetics company, launched a halal-certified skincare line in Malaysia. Additionally, Schwan-Stabilo Cosmetics, a German company, is ready to offer halal-certified products to key customers such as Procter & Gamble and L’Oréal. Additionally, in a press release recorded by LiveMint, Joerg Karas, the general manager of Schwan-Stabilo Cosmetics, predicted that “Halal certification is a requirement that might be put in place by other countries in the future” and that they are “well-equipped for this niche market.” (Source)

• Friendly to the Environment

Halal cosmetics are considered environmentally friendly as they do not contain harmful chemicals or pollutants that may harm the environment. This is particularly important for environmentally conscious consumers who want to reduce their carbon footprint.

For example, Amara Halal Cosmetics is a United States-based company that provides a wide range of halal-certified cosmetics. Amara faces competition from other companies in the same industry, such as ILIA Beauty, Renee Cosmetics, ESQA, and LIVETINTED. According to the company’s sources, Amara Halal Cosmetics is ranked 49th among 140 active competitors. (Source)

• Premium Quality Product

Halal cosmetics are often marketed as premium products. Many non-Muslims are attracted to halal cosmetics’ luxurious and high-quality nature and are willing to pay a premium price. This factor presents a significant opportunity for companies to tap into this lucrative market, and many established personal care brands have launched halal product lines to cater to the growing demand for these products.

In 2020, Unilever Ventures led a Series A funding round in Esqa, raising $6 million for the Indonesian vegan brand. Founded in 2016 by entrepreneurs Cindy Angelina and Kezia Trihatmanto, Esqa was the first local vegan brand to launch in Indonesia. The investment also marks Unilever Ventures’ first foray into the Southeast Asian market. The brand offers 120 SKUs, certified as halal and vegan, making it lucrative for non-muslim and muslim consumers alike.

• Worldwide presence via E-Commerce

E-commerce platforms have played a significant role in the growth of the halal cosmetics market, making it easier for consumers to access these products from different parts of the world. Many halal cosmetics brands have leveraged e-commerce platforms to reach consumers in different countries, increasing their reach and expanding their customer base.

For Instance, Saaf Beauty, a United Kingdom-based halal-certified brand, sells its products on Amazon, making it easier for consumers to purchase its products from different parts of the world. Launched in February 2008, Saaf Beauty has received accreditations from the Soil Association, Halal and cruelty-free certified by Naturewatch. One of the most popular halal cosmetic brands in the United Kingdom, Saaf Beauty is popular among non-muslim consumers for being a suitable vegan option.

The Future of Halal Cosmetics: Shifting Perspective of Buyers

The global halal cosmetics market growth is accelerating as a significant share of the non-Muslim population is also shifting towards halal beauty products, as they symbolize cleanliness and hygiene. This shift has resulted in a revolutionary demand for consumer products such as skincare and cosmetics. For instance, as more women in rural and urban Bangladesh enter the workforce or pursue higher education for economic and social empowerment, traditional beauty & personal care standards are being challenged.

Furthermore, the ability to implement the KYC concept effectively has positioned numerous local companies as frontrunners in the industry, empowering them to compete effectively with multinational corporations. This is a widely recognized factor that has contributed to their success and emergence as industry leaders. By offering innovative and high-quality halal-certified products, companies can capture a significant market share and cater to the evolving needs of consumers seeking personal care products that align with their values and beliefs.

In conclusion, the growing demand for halal cosmetics among non-Muslims presents a significant opportunity for companies willing to invest in this space. With the increasing awareness of harmful ingredients in personal care products, the rising purchasing power of Muslim and non-muslim consumers, and the perception that halal products are safer, healthier, and more ethical, the global halal cosmetics market is expected to continue growing during the forecast period.

By Sukanya Mukherjee