Halal Cosmetics Market 2022 to 2028 | Demand, Size & Forecast

[Research Report] The halal cosmetics market is expected to grow from US$ 36,686.54 million in 2022 to US$ 79,861.73 million by 2028; it is estimated to grow at a CAGR of 13.8% from 2022 to 2028.

Market Insights and Analyst View:

Halal cosmetic products are cosmetic products that adhere to Islamic standards, i.e., cosmetic products free from pig-derived and other forbidden ingredients. Halal cosmetic products are also wudu–friendly (permeable to water), as required by Islamic standards. The halal cosmetic products are sourced and manufactured with ‘permissible’ ingredients under Islamic law. Halal cosmetic does not contain any alcohol or any ingredients from animals that are forbidden for Muslims.

Growth Drivers and Challenges:

Halal cosmetics have witnessed significant adoption among the Muslim population owing to the increasing demand for personal grooming and trending cosmetic and beauty products that adhere to religious loyalties. The growth of the global halal cosmetics market has driven due to the rise in purchasing power of the growing Muslim population across the globe. The desire of young Muslim women to associate their interest in fashion & makeup with Islamic loyalties in countries such as Saudi Arabia, Malaysia, Iran, UAE, and Indonesia and consumers equally interested in fashion and makeup trends have boosted the consumption of halal cosmetics, which will drive the global halal cosmetics industry. Moreover, some vegan varieties also extend the market opportunity for the non-Muslim population. For example, Eco trail, an Indian company, and UK-based PHB Ethical Beauty offer products that are not only Halal certified but also cruelty-free and free from harmful substances. This trend is being followed by leading global brands, such as The Body Shop and Forest Essentials, which, in turn, is supporting the market expansion. However, the prices of halal-certified cosmetics are much higher than standard cosmetic products, which can restrain market growth.

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Halal Cosmetics Market: Strategic Insights

Market Size Value in	US$ 36,686.54 Million in 2022
Market Size Value by	US$ 79,861.73 Million by 2028
Growth rate	CAGR of 13.8% from 2022 to 2028
Forecast Period	2022-2028
Base Year	2022

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Report Segmentation and Scope:

The “Global Halal Cosmetics Market” is segmented based on product type, category, distribution channel, and geography. Based on product type, the halal cosmetics market is segmented into skincare, haircare, makeup, and others. Based on category, the market is classified into men, women, and unisex. Based on distribution channel, the halal cosmetics market is segmented into supermarkets and hypermarkets, specialty stores, online retail, and others. The halal cosmetics market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on product type, the halal cosmetics market is segmented into skincare, haircare, makeup, and others. The skincare segment held the significant share in the halal cosmetics market and is expected to register the significant growth over the forecast period. Most cosmetics contain ingredients that cause skin irritation and may have a long-term effect on health. As a result, halal cosmetics have proven to be an alternative and effective solution for consumers. Increasing disposable income coupled with adopting a modern lifestyle is presumed to be the significant factor potentially boosting the halal cosmetics market worldwide.

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Regional Analysis:

Based on geography, the halal cosmetics market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global halal cosmetics market was dominated by Asia Pacific, which accounted for US$ 14,838.48 million in 2022. Middle East & Africa is a second major contributor holding more than 20% share in the global market. Europe is expected to register the considerable growth at a CAGR of over 13.9% over the forecast period. has been noticed as one of the prominent markets for halal cosmetics due to the surge in awareness about cruelty-free products and the increased population. The rise in foreign direct investments also leads to regional economic growth. Moreover, Middle East & Africa has a large Muslim population, thus giving halal cosmetic products a lucrative opportunity for growth. Such factors have allowed global brands and online retailers to expand their offerings to capture the demand. Due to the demand for halal-certified products in the region, Saudi Arabian PIF (Public Investment Fund) launched its new Halal Products Development Company in October 2022. The company aims to manufacture personal care and cosmetic products locally in Saudi Arabia and export halal-certified products worldwide.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the halal cosmetics market are listed below:

1. In November 2022, Iba Cosmetics, a Halal cosmetics manufacturer, partnered with Believe company based in Singapore. Believe company has invested US$ 10 million to partner with Iba Cosmetics to distribute and expand their retail market space across operating countries such as Middle Eastern and European and South Asia countries.
2. In November 2022, Iba Cosmetics partnered with Believe company based in Singapore. Believe company has invested USD 10 million to partner with Iba Cosmetics to distribute and expand their retail market space across operating countries such as Middle Eastern and European and South Asia countries.
3. In April 2022, Inika Organic launched its new cosmetics collection, Pure with Purpose. The range of products included in the group is Lash & Brow Serum, Hydrating Toning Mist, Eyeshadow Quads, Brow Palette, and more. These products are claimed to be 100% natural, vegan-certified, halal-certified, and cruelty-free.
4. In August 2021, Kao Corporation, a Japanese manufacturer of halal-certified cosmetics, collaborated with lion corporation to develop recyclable packaging and minimize the plastic footprint.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the consumer goods industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Various halal cosmetic manufacturers had to temporarily close their operations or limit their production capacities, negatively impacting the growth of the halal cosmetics market. Also, in the early period of the crisis, manufacturers were majorly dependent on the existing inventory. Due to the pandemic-induced economic recession, consumers became more cautious and selective in purchasing decisions. Consumers significantly reduced nonessential purchases due to lower incomes and uncertain earning prospects, especially in developing regions. However, by the end of 2021, many countries were fully vaccinated, and governments announced relaxation in certain regulations, including lockdowns and travel bans. Post-pandemic consumers increasingly demand skincare and haircare products as there has been a growing trend of self-care post the COVID-19 pandemic. The growth of online retail during the pandemic has also provided growth opportunities for halal cosmetic manufacturers. Along with this, the relaxation of trade restrictions has led to the import and export of halal cosmetics, positively impacting the market.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global halal cosmetics market include Clara International Beauty Group; Inglot Cosmetics; Inika Organic Australia; IVY Beauty Corporation; MMA Bio Lab Sdn Bhd; OnePure, LLC; PT Paragon Technology and Innovation; PHB Ethical Beauty Ltd.; Sampure Minerals; and IBA Cosmetics among others.