Halal e-commerce site launched as sector continues to rise

By Lucy Whitehouse

- Last updated on GMT

Halal e-commerce site launched as sector continues to rise
In a move which confirms the ever-growing dominance of the halal category within the beauty industry, a new e-commerce site which will host skin care and cosmetics products among its offering is to be launched in Malaysia.

Aladdin Group, an e-commerce company in the country, has invested US$5 million to establish the digital marketplace, which will be known as Aladdin Street.

According to the Malaysian Insider, it will be the country’s “first exclusive halal and shariah compliant e-market shopping platform​”.

The company says it aims to target consumers globally, and alongside cosmetics and beauty, it will offer a product range spanning such diverse industries as pharmaceutical, fashion, food, beverage, and also banking and finance services.

It comes at a time when halal is seeing a strong rise across industries globally, and nowhere is this more true than within beauty in Asia, where the halal sector is predicted an annual growth rate (CAGR) of 9.9% through to 2020, set to reach US $2.47bn.

The rise of the Muslim consumer group

The increasing global dominance of halal products is due to the rising profile of the Muslim consumer, according to Euromonitor International senior analyst Oru Mohiuddin, who specialises in beauty and personal care.

Mohiuddin says that the increase in demand can be attributed in large part to the rising purchasing power of the Muslim consumer, and the fact that younger Muslim women are showing greater interest in fashion and beauty, and are keen for products to meet religious compliance.

The analysts has told CosmeticsDesign that a more global perspective for halal retail is a logical next step for beauty: “While local players are tapping into the segment in their respective markets, there are scopes in the western countries with a large Muslim population too​.” 

The new Malaysian e-commerce platform is gearing up to meet this global demand: the company says it is targeting both Muslim and non-Muslim markets in more than 30 countries around the world, including India, Europe, China, Indonesia and the Middle East.

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