Halal Cosmetics Market Expected to Reach $144.8 Billion by 2031

According to a new report published by Allied Market Research, titled, “Halal Cosmetics Market," The halal cosmetics market size was valued at $30,685.40 million in 2020, and is estimated to reach $144,816.10 million by 2031, growing at a CAGR of 15.2% from 2022 to 2031.

Halal cosmetics have a substantial application among Muslim consumers owing to the increasing demand for personal grooming and trending beauty products that adhere to religious loyalties among Muslims. In the LAMEA region, the Middle East accounts for the highest market share owing to the presence of the Muslim majority countries that strictly obey the religious commitments in their halal cosmetic products. However, Asia-Pacific is expected to exhibit the fastest growth attributed to the growing Muslim population in Muslim majority countries such as Malaysia, Singapore, and Indonesia, along with an increasing focus on personal and beauty care.

Obtaining halal certification has become a mandate for all halal products in the market. As per the Islamic Shariah Laws, halal cosmetics should be certified by the registered halal authorities before they are introduced in the market. Halal certification enables the Muslim population to identify the genuine products, thereby obeying the virtues of their law. To tap into the vast Muslim consumer base, companies are manufacturing halal cosmetics with authentic halal certification, thereby fueling the growth of the global halal cosmetics market.

The global halal cosmetics market is driven by rise in Muslim population globally and booming halal market, which has now extended its product base to meet the growing personal & beauty care needs of Muslim population. Halal certification enables Muslim population to identify the genuine products, thereby obeying the virtues of their religion, thereby fueling the growth of the global halal cosmetics market.

However, rules and regulations pertaining to the authenticity of a halal ingredient vary as per the countries, which is thereby expected to restrict the companies to penetrate in the halal cosmetics market. Cosmetic manufacturers thereby fail to obtain an authentic halal certification in Muslim-dominant countries. Thus, lack of global standardized set of halal-specific guidelines is a major factor that restrains halal cosmetics market growth. 

According to the global halal cosmetics market analysis, the market is divided by product type, application, distribution channel, and geographical division. By product type, it comprises personal care products, color cosmetics, and fragrances. By application, it includes hair care, skin care, face care, and beauty care. Based on the distribution channel, the market is segmented into online and offline. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players in order to sustain competitive environment and increase their market share.  

Among the product type, fragrance segment is expected to have the highest CAGR during the halal cosmetics market forecast period, followed by color cosmetics. The color cosmetics segment is expected to account for $48,801.5 million in 2031, registering a CAGR of 15.5%. Halal color cosmetics have widespread adoption among the Muslim women population, especially in the youth. Increase in interest of the young Muslim population toward make-up trends that adhere to the religious loyalties has fueled the demand for global color cosmetic products. The demand for halal color cosmetics is expected to witness an upsurge due to rise in purchasing power and growth in desire for trendy looks among consumers. Halal color cosmetic products include a broad array of products such as lipsticks, hair color, blushes, lip balms, and others. These products are widely used among the young Muslim population who are associated with fashion industry, for instance, airline hostesses and others. Muslim women are more particular about using halal color cosmetics during Ramadan pertaining to the stringent religious rules.

Based on distribution channel, offline sales channel held the major halal cosmetics market share. Offline distribution channels include standalone stores, retail stores, supermarkets, and others wherein the products are displayed for consumers to have a first-hand look at the products that enable them to check the authenticity of the products.

The demand for halal cosmetic products in the overall halal cosmetics industry is expected to be driven by increase in purchasing power of the growing Muslim population and significant desire among young Muslim women to associate their interest in fashion and makeup with Islamic religious loyalties. These factors also provide lucrative opportunities to the multinational cosmetic companies to enter the halal cosmetics market. Countries such as Saudi Arabia, Iran, UAE, Malaysia, and Indonesia offer potential growth opportunities for halal color cosmetics products owing to the factors such as increase in young population, high disposable income, and rise in interest in fashion and makeup trends

The key players operating in the market include Amara Cosmetics, Iba Halal Care, Halal Cosmetics Company, Clara Internation, Inika, Wardah Cosmetics, PHB Ethical Beauty, Sampure Minerals, One Pure, Mena Cosmetics, SaafSkinCare, and others.  

Key Findings of the Study        

• Personal care products held the major share in the market accounting near 37.4% of the total halal cosmetics market.   
• Hair care segment held the major share in the market and is likely to remain dominant throughout the forecast period.  
• Online sales channel witness a major growth rate in the market.
• The LAMEA region account for more than half of the total share in 2020.