Halal popularity goes global

By Natasha Spencer

- Last updated on GMT

Halal popularity goes global

Related tags: Halal cosmetics, Cosmetics, Compound annual growth rate

The halal cosmetics market is expected to rise to $52.39 bn (€48.9 bn) by 2021, up from $26.47 bn (€24.7 bn) in 2016, global technology research and advisory company Technavio, reports.

Growing at a compound annual growth rate (CAGR) of nearly 15%, the APAC region is expected to create the largest revenue and maximum incremental growth throughout the period between 2017-2021.

Despite APAC’s ongoing prominence, the global halal market is set to expand beyond the APAC region over the next four years, as non-Muslim countries increasingly embrace beauty and cosmetics products that feature halal-approved ingredients and production methods.

The non-Muslim segment

In recent years, halal cosmetics have become known as a hallmark of safety, high-quality and hygiene. As such, non-Muslim countries including India and China are following the trend and supporting the market’s growth.

Last year, saw non-Muslim consumers account for approximately 31% of halal cosmetics purchases, and this figure is set to rise.

“Halal makeup products are manufactured and distributed by many global personal care companies across the globe. The vendors maintain a high-quality and integrity of these product lines, which makes them appealing to many consumers,”​ highlighted Brijesh Kumar Choubey, a lead analyst in cosmetic and toiletry research at Technavio.

Innovation is a core focus for halal cosmetic developers as brands turn to personalised and targeted marketing approaches to direct sales to specific and various age groups and lifestyle demographics.

Moving beyond APAC

The emergence and the subsequent awareness of halal-specific brands such as Iba Halal Care — hailed as ‘India’s first halal and vegan cosmetics brand’ — and US-based Amara Cosmetics has helped to broadcast the benefits of choosing halal products over non-halal based alternatives.

Entering the digital world

“Online retailing and e-commerce are immensely popular due to the rapidly increasing internet penetration. This has given an innovative and powerful tool for halal cosmetics vendors to increase their sales and profitability,”​ added Brijesh.

As the digital revolution continues to attract consumers, beauty marketers are heading to the online retail space to maximise sales. Manufacturers and brands recognise that by shifting their focus online they up the opportunities for creating profits, whilst limiting operational costs.

To help their internet-based presence, companies are turning to social media platforms and strategic online growth campaigns to create additional awareness and interest in the halal beauty sector.

While the personal care segment is tipped to lead the halal market globally with 97.18% market share in 2021, the retail segment is anticipated to draw a CAGR of 14.41% by the end of the forecast period.

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