The evolution of the halal trend part I: Creating new target markets

By Natasha Spencer

- Last updated on GMT

Creating new halal markets

Related tags Cosmetics

As the number of facial skin care products with Halal claims in APAC continues to rise steadily, we asked Sharon Kwek, Senior Beauty and Personal Care Innovation and Insight Analyst at Mintel about latest developments and how the market in APAC compares to the global halal sector.

The percentage of global facial skin care product launches that contain a halal claim has steadily risen in recent years, despite the niche market, reported market research company Mintel.

With the Muslim population set to rise 73% between 2010 and 2050, the target market opportunities for Halal products have considerable potential, paving the way for future product innovations.

“The rise in Halal cosmetics is led by the growing Muslim population, as well as the rising popularity of ethical lifestyles. The concept of halal is about purity and cleanliness, and safe consumption enriched with natural ingredients that is in line with the ethical way of life,”​ highlighted Sharon Kwek, Senior Beauty and Personal Care Innovation and Insight Analyst at Mintel.

“The rising trend of ethical well-being and lifestyle will increase the pace of the innovation landscape, as well an increasing awareness of the halal-certified products that are not solely restricted the Muslim population.”

Halal lifestyle

For a product to contain halal claims, typically it must meet specific criteria: no alcohol, free from animal testing methods in the development phase and exclude non-permissible animal-derived ingredients.

However, as the boundaries of halal are less clear in the cosmetics sector, the term ‘halal’ is being favoured by females both inside and outside of the Muslim market. While animal ingredients are often not considered halal, alcohol can spark debate, and so non-Muslim women are selecting halal products based on their lifestyle choices.

“With alcohol associated with skin irritability, and more women interested in ethical products, cosmetics that claim not to use alcohol or animal ingredients will have a broader appeal,”​ Andrew McDougall, Global Analyst at Mintel reported.

Halal consumers are demanding transparency through clear labelling. With increasing numbers of brands now halal-certified, purchasers are checking ingredients and sources on labels before purchasing.

Natural and organic crossover

Mintel reported that 32% of all consumers who eat poultry and/ or game would be willing to eat halal meat, indicating that APAC consumers are willing to try halal cosmetic products.

As the natural and organic trends have already secured the relationship between the food and drink industry and cosmetic and beauty, Mintel anticipates that non-Muslim consumers will be happy to try and use halal beauty products.  

This existing relationship creates additional opportunities in the natural and organic sector, as Muslim women consider Halal-certified claims as a key deciding factor when choosing to purchase cosmetics, beauty and personal care products.

As 20% of people who have previously bought personal care products prefer natural and organic make up, both the Muslim and non-Muslim markets are placing increasing emphasis on the sourcing of ingredients; 57% stated they purchase natural and organic products due to brands’ attempts to reduce the number of chemicals in products and 48% believe halal products are beneficial for health.

Brands throughout APAC are investing in R&D to discover, source and utilise appropriate ingredients that together, form Halal products.

“Black seed oil, for example, with its historical ties to Islamic medicine, can appeal well to Muslim skincare purchasers who are looking for organic ingredients and/or halal certification,” ​added Kwek.

Global audience

Mintel reported that 0.93% of beauty and personal care (BPC) products launched so far in 2016 in APAC have carried a halal claim, compared to 0.35% of global product launches in 2016.

This is up from 0.41% and 0.11% of products launched in 2011 in APAC and throughout the globe, respectively. The proportion of BPC products launched with a halal claim during this five-year period has grown by 128%.   

Global halal claims, analysed from January 2013 to November 2015 showed that 0.2% of facial skin care products contained a halal claim in 2013, compared to 0.3% in 2014 and 0.5% in 2015.

“As the term ‘halal’ becomes increasingly common within the marketplace, industry players are concerned over the commercialisation of this concept as the line is blurred with the religious importance of this claim,”​ stated Kwek.

The second part of this three-part insight into the evolution of the halal trend in APAC will be published on 13th December.

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