Halal cosmetics: just for Arab countries or the future trend?

08 July 2024

There is a booming global cosmetics market with impressive figures: the 30 billion dollars recorded in 2022 are expected to double by the end of the decade. We are talking about halal cosmetics, meaning all beauty products made with permissible (halal) ingredients for Muslim consumers. To be declared halal, they must be formulated, produced, packaged, stored, and distributed in compliance with the regulations of an Islamic certification body that guarantees their halal status. On the opposite side, there are haram products, meaning forbidden and unlawful ones: alcohol first and foremost, but also pork derivatives, blood, reptiles, insects, GMOs, and animals not slaughtered according to Islamic law.

What are the key factors behind the success of halal cosmetics?

Several factors drive this success. First, the growing demand for cosmetic products from Arab and Muslim countries: the demand from countries like Malaysia, Indonesia, Saudi Arabia, and Turkey, to name a few, is expanding rapidly. Muslim-majority countries are expected to remain the top consumers of halal cosmetics for several years, but these products are also spreading to other parts of the world, such as China (where the Muslim community is a minority, but the competitive price is a strong purchasing incentive) and Europe. Here, the market addresses the needs of large migrant communities and second-generation youths, fully integrated Europeans who choose a Western lifestyle while respecting their family’s cultural and religious traditions. A third reason, particularly appealing to Millennials, is that halal products are almost always vegan and cruelty-free and adopt production (and marketing) strategies that resonate with environmental awareness, such as minimizing water consumption and using sustainable packaging, often avoiding plastic.

Variety and specificity of halal cosmetic products

In terms of products, the range is quite similar to that of traditional cosmetics: the difference lies in the processing and ingredients. You can find halal versions of fragrances, personal care and hygiene products, lipsticks, foundations, skincare products, and more. In makeup, the most popular product is long-lasting foundation, essential for women who wear the hijab and prefer no-transfer products to avoid staining their veil.

Challenges and opportunities for companies

This growing and highly attractive market has so far received limited attention from major brands, with only a few products dedicated to the Asian market. For independent small and medium-sized companies, the choice is not easy: on one hand, the great potential of this market; on the other, the challenges of obtaining certification. Halal standards are very high, both for raw materials and production processes: those aiming for certification must make significant investments in raw materials, packaging, and company operations. A certified halal cosmetic not only excludes forbidden ingredients but also guarantees the absence of contamination or impurities throughout the production cycle: for example, all sanitizing and cleaning agents used on equipment must be alcohol-free.