Halal Cosmetics Market Size, Share & COVID-19 Impact Analysis, By Type (Skin Care, Hair Care, Makeup, and Others), By Distribution Channel (Store-Based/Offline and Non-store-based/Online), and Regional Forecast, 2023-2030

The global halal cosmetics market size was USD 37.62 billion in 2022 and is projected to grow from USD 42.39 billion in 2023 to USD 92.55 billion by 2030 at a CAGR of 11.80% during 2023-2030.

The increasing consumer preference for chemical-free, natural ingredient-based cosmetics & personal care products favors the global halal cosmetics market growth. The demand for halal cosmetics is more prominent across countries with a sizable Muslim population. Key players continue to focus on R&D and innovation activities, greatly enhancing sales and encouraging young Muslim women to associate their interests with halal-certified products.

Given the increased demand for safe and clean-labeled products, the halal-certified cosmetics market size will likely create considerable growth opportunities for prospective players in the coming years. While halal-certified products have historically been in high demand across Muslim countries, modern consumers increasingly prefer these products owing to various factors such as ingredients used and safety, even in Non-Muslim countries.

COVID-19 IMPACT

Severe Supply Chain Disruptions Due to COVID-19 Pandemic Hampered Market Expansion

COVID-19 has caused significant supply chain disruptions worldwide, most notably throughout 2020. Small-scale halal cosmetics manufacturers in emerging countries such as India, Malaysia, and others 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 by 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 to Gain Significant Traction

The demand for natural and plant-based products has risen steadily over the past few decades. Recent years have witnessed a heightened product demand worldwide as consumers become increasingly aware of sustainable living practices and environmental issues associated with non-halal cosmetics. A healthy lifestyle necessitates the use of natural cosmetics and personal care products. In this respect, halal-certified cosmetics are gaining widespread adoption, primarily manufactured using natural ingredients (without 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 products to compete in cosmetics, positively influencing the global halal cosmetics market trends.

DRIVING FACTORS

Rising Consumer Demand for Product Quality and Safety to Favor Market Growth

Halal-certified products are manufactured or sourced from oils, organic solvents, proteins, vitamins, plant 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.

Islamic law does not permit the employment of ingredients sourced from human body parts, pigs, blood, reptiles, and insects. The law also states that products' production, processing, storage, and transportation 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.

Government Support to Increase Acceptance of Halal-Certified Cosmetics

With the growing Muslim population, halal items are becoming more popular in many parts of the world. In Malaysia, more than 50% of the people are Muslims and 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 after year. Furthermore, non-Muslim consumers prefer to buy halal-certified cosmetics, given their increasing awareness of halal-certified products. Various countries, including the U.S., India, China, and Malaysia permit the cross-border sale of products.

RESTRAINING FACTORS

Price Factor of Halal Cosmetics to Impede Product Sales

The price for halal-certified cosmetics is much higher than standard cosmetic products. While quality and safety are key factors influencing 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 from halal cosmetics to standard cosmetics, owing to the price factor. Therefore, higher price points will likely restrain the global halal cosmetics market share over the forecast timeframe.

SEGMENTATION

By Type Analysis

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Halal Skin Care Products to Constitute the Majority of New Product Launches Worldwide 

The market is segmented into skin care, hair care, makeup, and others based on type. The skin care segment held a dominant share of the market in 2022. 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 cosmetics among consumers contribute to the popularity of halal-certified skincare products. Consumers from developing countries, such as Saudi Arabia, Iran, India, Indonesia, and Malaysia, are increasingly spending on skin care 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 2030

Based on distribution channel, the market covers store-based/offline and non-store-based/online. Store-based/offline segment dominates the market share. Halal-certified cosmetics are popular when it comes to safe cosmetic products. These products are typically sold offline or in brick-and-mortar distribution channels as halal-certified cosmetics brands prefer to reach their consumers conveniently through different physical stores. The novel COVID-19 pandemic has encouraged manufacturers to focus on the online/e-commerce distribution platform.

REGIONAL INSIGHTS

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The global market analysis covers North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America dominated the market share. The U.S. led the North America market in 2022. 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 important markets for halal-certified cosmetics. Canada is another primary market in North America for such products.

Russia emerged as a prominent market in Europe 2022 with a 28.51% market share. The country is expected to retain its central position through the forecast period. The Italy market is expected 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 cosmetics and will likely elevate product sales in the forthcoming years.

Asia Pacific held the most significant market share in 2022 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 many Muslims. Prospective brands are expected to focus on expanding across other Asian markets, such as Japan, in the coming years.

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South America and the Middle East & Africa markets only account for a small fraction of the global sales turnover. However, these regional markets will likely 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 Middle East countries is likely to contribute to the increased 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 focus on market penetration activities while strengthening their market presence to reach consumers/shoppers using an Omni channel distribution model. In September 2018, Iba Cosmetics, an Indian 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 key players, including PHB Ethical Beauty Ltd., benefit from halal product certifications.

List of Key Companies Profiled:

• Ivy Beauty Corporation Sdn Bhd (Malaysia)


• Iba Cosmetics (India)


• Talent Cosmetics (South Korea)


• Clara International Beauty Group (Malaysia)


• Kao Corporation (Japan)


• Amara Halal Cosmetics (U.S.)


• INIKA Organic (Australia)


• Elaheh Halal Cosmetics Inc. (U.S.)


• Flora & Noor (U.S.)


• Martha Tilaar Group (Indonesia)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: NUME-Lab, a Swiss-based halal skincare brand, announced its strategy to target South East Asian markets such as Singapore, Malaysia, and Hong Kong. NUME-Lab specializes in cleansers, face creams (face care products), night serums, and eye serums. The company plans on setting up operations in these Asian countries through distributorships in the near term.


• November 2022: Iba Cosmetics, an India-based company, partnered with Believe, a Singaporean FMCG conglomerate specializing in personal care essentials. Through this collaboration, the latter invested USD 10 million in Iba Cosmetics to expand its retail market space in Saudi Arabia, UAE, Bahrain, Bangladesh, and other countries.


• September 2022: Kolmar Korea Co., a South Korean halal cosmetics manufacturer, announced its plan to expand in the UAE by supplying halal-certified cosmetic products. This expansion will likely complement its broader goal to accelerate its international expansion plan in the coming years.


• October 2021: Mikyajy, a Dubai-based cosmetics brand, launched a halal-certified cosmetics line, including lipsticks. According to the company, the COVID-19 pandemic has encouraged cosmetic brands to develop sustainable and hygienic halal-certified products.


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

REPORT COVERAGE

An Infographic Representation of Halal Cosmetics Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and distribution channels. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation