According to FMI, tSoutheast Asia accounted for 61.2% share of the total Asia market, and FMI expects the region to remain lucrative during the forecast period.
The key factors fuelling the growth of halal cosmetics in Southeast Asia include increasing awareness about the transdermal nature of cosmetics, rise in personal grooming needs, demand for organic/vegan-friendly cosmetics, and strengthening of the distribution channels.
Key halal cosmetics companies are looking to consolidate their position in the highly lucrative market in Southeast Asia by widening their product offerings. The companies are leveraging the reach of social media to raise awareness about their products and connect with their target audience.
The Southeast Asia halal cosmetics market is currently valued at US$945.8 million, and FMI expects it to surpass US$1 billion by 2016. FMI said the market is expected to expand at a CAGR of 10.2% from 2015 to 2020.
Consumer awareness about the use of porcine and other animal-derived ingredients in cosmetics is prompting Muslim consumers in Southeast Asia to opt for halal-certified cosmetics. Botox procedures in Malaysia and Indonesia have witnessed a drastic reduction owing to concerns about the source of ingredients used in some products, FMI adds.
Demand for halal skincare and halal colour cosmetics is robust in Southeast Asia. According to FMI, these two product segments accounted for over 70% share of the Southeast Asia halal cosmetics market in 2014.
According to FMI, colour cosmetics will remain the dominant product type in Southeast Asia halal cosmetics market, owing to strong demand for anti-ageing products. The colour cosmetics segment is projected to expand at a CAGR of 10.5% during the forecast period and reach a valuation of US$641 million.
Demand for halal haircare is also anticipated to witness robust growth in Southeast Asia in the near future. According to FMI, the hair care segment will expand at a CAGR of 10.1% during the forecast period and be valued at US$240.9 million by 2020.
Challenges for the market include a lack of standard certification guidelines, as rules and regulations concerning halal certification vary from country to country.
Key players in the Southeast Asian halal cosmetics market include Martha Tilaar Group, Wipro Unza, Clara International, Ivy Beauty Corporation, and Paragon Technology and Innovation.
Martha Tilaar Group has a strong presence in halal skin care, colour cosmetics, and haircare segment. The company has built a positive perception among consumers in Indonesia. Its Sariayu-Martha Tilaar brand received top brand awards for face powder and face masks. In a bid to expand its herbal business in Indonesia, founder Dr Martha Tilaar has established an association with herb sellers in Indonesia to provide guidance and training and hone their skills.
Wipro Unza group has a strong presence in the halal skincare and haircare segment. The company is focusing on expanding its key brands, such as Safi, Enchanteur, and Romano to target new audiences in Southeast Asia.
Clara International is focusing on expanding its relationship with online and offline retailers to make its products easily available to the consumers. The company has a strong presence in Malaysia, and it is planning to expand its presence to other countries to improve its market position.
Interested?
Browse the Halal Cosmetics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2015 - 2020 report
Read the Suroor Asia blog post on FMI's Asia Pacific outlook for halal cosmetics
Read the Suroor Asia blog post on FMI's Asia Pacific outlook for halal cosmetics
Read the Suroor Asia blog post about Martha Tilaar's alliance with herb sellers
Read the Suroor Asia blog post about the Sariayu Martha Tilaar brand
Read the Suroor Asia blog post about the Sariayu Martha Tilaar brand