The global halal cosmetics market is driven by rise in Muslim population globally and the booming halal market, which has now extended its traditional product base of food and beverages to meet the growing personal and beauty care needs of Muslim population. Halal certification enables Muslim population to identify the genuine products, thereby obeying the virtues of their religion, thereby fuelling the growth of the global halal cosmetics market.
However, rules and regulations as to whether an ingredient is halal varies across countries, which is thereby expected to hinder cosmetic companies planning to penetrate the global halal cosmetics market.
The demand for halal cosmetic products in the overall halal cosmetics industry is expected to be driven by increase in purchasing power of the growing Muslim population and significant desire among young Muslim women to associate their interest in fashion and makeup with Islamic religious loyalties. These factors also provide lucrative opportunities to the multinational cosmetic companies to enter the halal cosmetics market.
Countries such as KSA, Iran, UAE, Malaysia, and Indonesia offer potential growth opportunities for halal colour cosmetics products. The Latin America, Middle East and Africa region is expected to register the highest CAGR of 15.1% due to a larger Muslim population, especially in the Middle East; high purchasing power, and demand for personal and beauty care cosmetic products among Muslim consumers.
The fragrance market is expected to register the top CAGR of 15.8% by segment in the halal cosmetics market, as Allied Market Research sees growing demand for attar* (عطار) sprays among Muslim consumers. The LAMEA region is expected to dominate the halal fragrance market due to growing populations in KSA, UAE, Kuwait, and Bahrain, and others; rise in purchasing power, and increased interest in personal grooming products that adhere to the Islamic virtues. The Asia Pacific region is also expected to grow significantly for halal fragrances, particularly driven by the Muslim population in nations such as Indonesia, Malaysia, Singapore, and India.
Colour cosmetics** is the next-largest halal cosmetics market segment after fragrances. The colour cosmetics segment is expected to account for US$17.9 billion in 2022, up from US$6.6 billion in 2015, registering a CAGR of 15.3%. Halal colour cosmetics are widely adopted by Muslim women, especially the youth. The demand for halal colour cosmetics is expected to witness an upsurge due to rise in purchasing power and a desire to look trendy. Halal colour cosmetic products include lipsticks, hair colour, blushes, lip balms, and others. Muslim women are more particular about using halal colour cosmetics during Ramadhan as it is a time when people are reminded to be closer to the faith, and therefore religious rules.
Key findings include:
- The hair care segment generated the highest revenue in 2015, and is expected to grow at a CAGR of 14.1% during the forecast period.
- The personal care segment accounted for the highest revenue in 2015, and is expected to have a a CAGR of 14.6%.
- With growth in demand for e-commerce sales, the online distribution sales channel is expected to grow at the fastest rate of 18.2% by 2022.
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Read the Suroor Asia blog post about Grand View Research's perspective on the halal cosmetics market
*Attar refers to essential oil-based fragrances which come from plants and that are made without alcohol.
**Colour cosmetics are those which add colour to parts of the body, and include colours for hair, skin, eyes, cheeks, lips and nails.