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Halal Cosmetics Market Size, Share & COVID-19 Impact Analysis, By Type (Skin Care, Hair Care, Makeup, and Others), Distribution Channel (Store-Based/Offline and Non-store-based/Online), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI106602

 

KEY MARKET INSIGHTS

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The global halal cosmetics market size was USD 21.20 billion in 2020. The market projected to grow from USD 33.3 billion in 2021 to USD 77.34 billion by 2028 at a CAGR of 12.75% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 19.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The increasing consumer preference for chemical-free, natural ingredient-based cosmetics & personal care products is favoring the market growth. Halal products are in high demand across countries with a large Muslim population. Key players continue to focus on R&D and innovation activities, which greatly enhance sales. The halal certified cosmetics market size is likely to create considerable growth opportunities for prospective players in the coming years, given the growing demand for safe and clean-labeled products. While halal-certified products have historically been in high demand across Muslim countries, modern consumers are increasingly preferring these products owing to various factors such as ingredients used and safety even in Non-Muslim countries.


COVID-19 MPACT


Severe Supply Chain Disruptions Caused by COVID-19 Pandemic to Hamper Market Expansion


COVID-19 has caused significant supply chain disruptions worldwide, most notably throughout 2020. Small-scale halal certified cosmetics manufacturers in emerging countries such as India, Malaysia, and others are being challenged by price fluctuations and economic uncertainties caused by the novel pandemic. Key international players such as Kao Corporation and Ivy Beauty Corporation Sdn Bhd are also experiencing disruptions in their business operations. Kao Corporation’s consolidated revenue for 2020 declined almost 8% compared with 2019 due to the closure of its production sites, store-based distribution channels, and disruptions in supply chain operations. Despite the impact of the COVID-19 pandemic on its operations, the company manages to sustain sales worldwide by utilizing online supply chain benefits.


LATEST TRENDS


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Natural & Eco-friendly Cosmetics are Becoming Increasingly Popular


The demand for natural and plant-based products has been rising steadily over the past few decades worldwide. Recent years have witnessed a heightened product demand worldwide as consumers are becoming increasingly aware of sustainable living practices environmental issues associated with non-halal cosmetic products. A healthy lifestyle necessitates the use of natural cosmetics and personal care products. In this respect, halal certified cosmetics are gaining widespread adoption, as they are primarily manufactured using natural ingredients (without employing animal fat or harmful chemicals). Numerous brands offer cosmetic & personal care products that feature natural ingredients such as botanical extracts and minerals and obtain vegan or halal to compete in the cosmetics space.


DRIVING FACTORS


Rising Consumer Demand for Product Quality and Safety is a Key Factor Favoring Market Growth


Halal cosmetics are manufactured or sourced from halal ingredients, including oils, organic solvents, proteins, vitamins, plant, and botanical extracts, and antioxidants. They are manufactured using a complex mixture of all these ingredients under halal standards. Manufacturers closely monitor the products to match the halal grade.


The Islamic law does not permit the employment of ingredients sourced from human body parts, pigs, blood, reptiles, and insects. The law also states that the production, processing, storage, and transportation of products are to be pure and under hygienic conditions. The safety and quality of halal certified cosmetic standards are higher compared with standard cosmetics products that are commercially available. This factor also contributes to the heightened popularity of halal-certification in cosmetics worldwide.


Rising Acceptance of Halal Certified Cosmetics Backed by Government Support


With the growing Muslim population, halal items are becoming more popular in many parts of the world. In Malaysia, more than 50% of the population are Muslims and they prefer halal-certified products including cosmetics. According to the Government of India (GoI), the Muslim population in the country was more than 10.9% in 2019, and their population is increasing year on year. Furthermore, non-Muslim consumers prefer to buy halal certified cosmetics products, given their increasing awareness of halal-certified products. Various countries, including the United States, India, China, and Malaysia permit the cross-border sale of products.


RESTRAINING FACTORS


Price Factor of Halal Cosmetics Impeding Product Demand


The price for halal certified cosmetics is much higher than standard cosmetic products. While quality and safety are key factors that influence buyers’ purchase decisions, the price remains the most prominent factor in the market. Consumers across developing markets such as Brazil, India, China, and others are shifting halal type of cosmetic products to standard cosmetics products owing to the price factor. Therefore, higher price points are likely to restrain the halal cosmetics market growth over the forecast timeframe.


SEGMENTATION


By Type Analysis


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Halal Skin Care Products Constitute Majority of New Product Launches Worldwide


Based on product type, the market is segmented into skincare, haircare, makeup, and others. The skincare segment held a dominant share of the market in 2020. Consumers significantly utilize skincare products to keep their skin healthy and glowing. According to the Socio-Economic Contribution of the European Cosmetics Industry report, published by Cosmetics Europe in June 2016 and updated in June 2019, more than 80% of European consumers believe that skincare and personal care products are essential for improving life quality.


Awareness and acceptance of halal cosmetic products among consumers contribute to the popularity of halal-certified skincare products. Consumers from developing countries such as India, Indonesia, and Malaysia are increasingly spending on skincare and makeup products, which favors the growth of the Asia market.


By Distribution Channel Analysis


Store-based/Offline Distribution Channel Segment to Account for Highest Market Share by 2028


Based on distribution channel, the market is categorized into store-based/offline and non-store-based/online. Halal certified cosmetics are popular when it comes to safety cosmetic products. These products are typically sold through offline or bricks-and-mortar distribution channels as halal certified cosmetic brands prefer to reach their consumers conveniently through different kinds of physical stores. The novel COVID-19 pandemic has been encouraging manufacturers to focus on the online/e-commerce distribution platform.


REGIONAL INSIGHTS


North America Halal Cosmetics Market Size, 2020 (USD Billion)

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The U.S. led the North America halal cosmetics market in 2020. Recent years have witnessed a significant increase in the number of new entrants in capitalizing on the business opportunities in the country. The U.S is one of the major markets for halal certified cosmetics. Canada is another major market in North America for such products.


Russia emerged as a prominent market in Europe in 2020 with a 28.60% market share. The country is expected to retain its prominent position through the forecast period. Italy is anticipated to emerge as a lucrative market over the forecast period. The demand for the product in European countries is driven by rising consumer awareness regarding animal cruelty. The ongoing vegan trend positively supports halal type of cosmetic products and is likely to elevate product sales in the forthcoming years.


Asia Pacific held the most significant market share in 2020 and is expected to witness robust growth over the forecast period. India is one of the key Asian markets for halal certified cosmetics and houses a sizable number of Muslims. Prospective brands are expected to focus on expanding across other Asian markets such as Japan in the coming years.


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The South America, Middle East, and Africa markets only account for a small fraction of the global sales turnover. However, these regional markets are likely to register significant growth in the coming years, given the rising consumer awareness regarding synthetic ingredients in cosmetics. While rampant poverty makes it challenging for brands to target African markets, high disposable income across The Middle East countries are likely to contribute to the high penetration of premium/luxury products in the forthcoming years.


KEY INDUSTRY PLAYERS


Ivy Beauty Corporation Sdn Bhd, Iba Cosmetics, and Kao Corporation to Acquire Prominent Positions in Global Market


Ivy Beauty Corporation Sdn Bhd, Iba Cosmetics, and Kao Corporation hold a significant market share. Prominent manufacturers significantly invest in R&D and product innovation to stay competitive. The key companies are focusing on market penetration activities while strengthening their market presence to reach consumers/shoppers using an omnichannel distribution model. In September 2018, Iba Cosmetics, an Indian halal cosmetics manufacturer, raised funds in series A1 from Addvantis Enterprises LLP to expand its business operations. Key industry players are also focusing on promotional activities to educate consumers regarding the availability and benefits of halal certified cosmetics while stepping up their efforts to strengthen their online and social media presence. Numerous market players, including PHB Ethical Beauty Ltd. benefit from halal certifications on their products.


LIST OF KEY COMPANIES PROFILED:



  • Ivy Beauty Corporation Sdn Bhd (Selangor, Malaysia)

  • Iba Cosmetics (Ahmedabad, India)

  • Talent Cosmetics (Seoul, Korea)

  • Clara International Beauty Group (Selangor Darul Ehsan, Malaysia)

  • Kao Corporation (Tokyo, Japan)

  • Amara Halal Cosmetics (California, U.S.)

  • INIKA Organic (Victoria, Australia)

  • Elaheh Halal Cosmetics Inc (New York, U.S.)

  • Flora & Noor (Kentucky, U.S.)

  • Martha Tilaar Group (Jakarta, Indonesia)


KEY INDUSTRY DEVELOPMENTS:



  • August 2020: Two ex-L’Oreal employees started to manufacture halal certified cosmetics products. They founded Shade Meauty in Dubai and launched 15 halal-certified, clean, PETA-approved, vegan, and cruelty free matte liquid lipsticks.

  • August 2021: Kao Corporation, a Japanese manufacturer of halal certified cosmetics, collaborated with Lion corporation, to develop recyclable packaging and minimize the plastic footprint on the planet. Lion Corporation is a manufacturer of detergent, soaps, medications, and oral hygiene products.


REPORT COVERAGE


An Infographic Representation of Halal Cosmetics Market

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The global halal cosmetics research report includes qualitative and quantitative insights into the industry. It also offers a detailed analysis of the market size and growth rate for all possible segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, SWOT analysis, the regulatory scenario in critical countries, and key industry trends.


Report Scope & Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion)



Segmentation


By Type and Distribution Channel

By Type




  • Skin Care

  • Hair Care

  • Makeup

  • Others



By Distribution Channel




  • Store-based/Offline

  • Non-store-based/Online



By Geography




  • North America (By Type, Distribution Channel, and Country)

    • U.S. (by Type)

    • Canada (by Type)

    • Mexico (by Type)



  • Europe (By Type, Distribution Channel, and Country)

    • France (by Type)

    • Germany (by Type)

    • U.K. (by Type)

    • Spain (by Type)

    • Italy (by Type)

    • Russia (by Type)

    • Rest of Europe (by Type)



  • Asia Pacific (By Type, Distribution Channel, and Country)

    • China (by Type)

    • India (by Type)

    • Japan (by Type)

    • Australia (by Type)

    • Rest of Asia Pacific (by Type)



  • South America (By Type, Distribution Channel, and Country)

    • Brazil (by Type)

    • Argentina (by Type)

    • Rest of South America (by Type)



  • Middle East and Africa (By Type, Distribution Channel, and Country)

    • UAE (by Type)

    • South Africa (by Type)

    • Rest of Middle East & Africa (by Type)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 21.20 billion in 2020 and is anticipated to cross USD 77.34 billion by 2028.

Registering a CAGR of 12.75%, the market will exhibit lucrative growth over the forecast period (2021-2028).

Based on type, the skincare segment is expected to account for the largest share during the forecast period.

The rising consumer consciousness about harmful-chemical-free cosmetics products is a major factor favoring market expansion.

IVY Beauty Corporation, Iba Cosmetics, Talent Cosmetics, Clara International Beauty Group, and Kao Corporation are a few of the leading players in the market.

Asia Pacific dominated the market in in 2020.

Based on distribution channel, the store-based/offline segment accounts for the most significant market share.

The rising consumer preference for natural/ green ingredients and environment-friendly cosmetics products is the current market trend.

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Halal Cosmetics Market Size, Share and Global Industry Trend Forecast till 2026
  • Apr, 2022
  • 2020
  • 2017-2019
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