ASIA PACIFIC HALAL COSMETIC MARKET ANALYSIS

Asia Pacific Halal Cosmetic Market was valued at US$ 2.81 Bn in 2022, and is expected to exhibit a CAGR of 10.5%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 6.23 Bn by 2030. The preference of consumers for halal cosmetics has changed as a result of growing awareness of the negative side effects of synthetic cosmetics, including skin allergies, respiratory distress, and others. The rise in the number of Muslims in the area is also helping the market for halal cosmetics to grow. New start-up cosmetics players are emerging as a result of the growth anticipated in the upcoming years, and the industry is diversifying its offering of goods.

Asia Pacific Halal Cosmetic Market: Impact of the Coronavirus (COVID-19) Pandemic

COVID-19 has created substantial supply chain disruptions around the world, most notably in 2020. Small-scale halal-certified cosmetics companies in growing markets such as India, Malaysia, and others are facing pricing volatility and economic uncertainty as a result of the new pandemic. Key multinational players like Kao Corporation and Ivy Beauty Corporation Sdn. Bhd. are also experiencing commercial challenges. Due to the closure of its production sites, store-based distribution channels, and delays in supply chain operations, Kao Corporation's consolidated sales for 2020 fell about 8% from 2019. Despite the impact of the COVID-19 pandemic on its operations, the company is able to maintain global sales by utilizing online supply chain benefits. Kao Corporation is a manufacturer of household and chemical products. The Company produces cosmetics, laundry and cleaning products

Asia Pacific Halal Cosmetic Market: Growth Drivers

Growing Muslim population drives up demand for Halal cosmetics

Due to the rising demand for trendy beauty products and personal care items that uphold religious convictions, halal cosmetics have seen significant adoption among Muslim consumers. Due to the rising demand for halal cosmetics products globally, the halal cosmetics market has increased the range of products it offers to enter the cosmetics market. For instance, Mikyajy unveiled their brand-new, entirely halal color cosmetics for the Middle Eastern girl in October 2021. Alcohol, gelatin, keratin, and collagen are absent in these organic cosmetics. They are also cruelty-free and vegan. Mikyajy is an Arabian homegrown brand for makeup and fragrances. The rising purchasing power of the expanding Muslim population has driven the growth of the global halal cosmetics market. The desire of young Muslim women in countries like Malaysia, and Indonesia to link their interest in fashion and makeup with their Islamic allegiances, as well as consumers who share their interest in fashion and makeup trends, have fueled the consumption of halal cosmetics, which will propel the global halal cosmetics market. For multinational companies competing in the international halal cosmetics market, these factors present lucrative opportunities. Additionally, the region's such as Asia Pacific, Europe, North America Middle East & Africa growth in e-commerce and online retailing has been aided by the surge in internet penetration. As a result, manufacturers of Halal cosmetics now have a lucrative opportunity to expand their reach by selling their goods through online channels. As a result, large manufacturers are utilizing social media's reach to raise awareness about halal cosmetics among consumers.

Rising demand for vegan beauty cosmetics

Animal welfare and living rights have even become a source of worry among today's youth. This reason is assisting the halal cosmetics industry size to thrive globally. The market is growing as customers become more aware of the benefits of using cruelty-free cosmetics that do not include any animal byproducts. The use of animals in various laboratory tests to determine the outcome of halal cosmetic products is strictly prohibited. As a result, firms are banning the use of animals in the testing of beauty goods. People are becoming more aware of the need to safeguard the animal. Veganism is a major driving force in the halal cosmetics sector. Vegan clients are propelling the Halal cosmetics companies. For Instance, According to the most recent LPPOM MUI data update, Arintawati confirmed that 794 cosmetic companies have halal certification, with 1,913 halal certificates and 75,385 halal-certified cosmetic products since 2021. Arintawati is  the Assessment Institute for Food, Drugs and Cosmetics of The Indonesian Council of Ulama

Asia Pacific Halal Cosmetic Market: Market Restraints

Lack of awareness about halal cosmetics

Trust issue in the integrity of cosmetic products owing to weak global halal standards and authentic certification bodies that regulate the use of ingredients in cosmetic products is projected to hamper the market growth. According to the Coherent Market Insights analysis, there are 150 to 200 halal certification bodies globally; Malaysia has 45 such bodies, Indonesia has 40 and there are 52 across GCC countries.

The availability of well-established organic cosmetics brands is expected to be a major factor hampering the Asia Pacific halal cosmetic market growth. Major brands such as The Body Shop, Naturism, 100% Pure, and Eccobella are easily available creating challenges for the halal cosmetic market in the region. This is projected to hinder the market growth.

Asia Pacific Halal Cosmetic Market: Market Segmentation

Asia Pacific halal cosmetics market is divided into several segments, including Skin Care, Color Cosmetics, Hair care, and Fragrances . Among these categories, the skincare segment has the largest share of the halal cosmetics market. Color cosmetics is the fastest-growing market segment due to their widespread use among young women worldwide. Rising demand for accreditation, especially in Southeast Asia, owing to growing awareness regarding halal products as it ensures the authenticity and integrity of cosmetics products are expected to propel the market growth. Proper certification for halal cosmetics companies in the region will favor the growth of Asia Pacific halal products. This is expected to foster market growth over the forecast timeframe. Expanding e-commerce in the Asia Pacific region which enables the easy availability of the products is expected to accelerate the market growth. According to Oberlo, Asian countries, such as Japan and South Korea, wrap up the list of the five-largest e-commerce markets. They are expected to bring in US$ 115.40 billion and US$ 103.48 billion in e-commerce sales in 2022 and growth rates of 4.0 percent and 18.1 percent, respectively.

Figure 1. Asia Pacific Halal Cosmetics Market, By Application, in 2022

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Asia Pacific Halal Cosmetic Market: Regional Analysis

Asia Pacific region's demand for halal cosmetics is being driven by an increase in the Muslim population, increased awareness of animal welfare, and the rise in veganism. Southeast Asia dominated the Asia Pacific halal cosmetic market in 2022, owing to the region's growing halal cosmetic market and Muslim population. As a result, this scenario is expected to boost the Asia Pacific halal cosmetic market during the forecast period. The growing Muslim population in countries like India, Indonesia, and Malaysia has increased the demand for halal cosmetics. Furthermore, social media have had a significant impact on halal cosmetics, with Indonesians accounting for more than 6% of Instagram's overall monthly active users. Modern Muslims in Asia Pacific are heavily involved in social media, fashion, and beauty, which drives the importance of social media. Aside from social sharing, the rapid growth of e-commerce sites selling halal cosmetics is propelling the Asia Pacific halal cosmetics market.

Figure 2. Asia Pacific Halal Cosmetics Market, By Region, 2022

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Asia Pacific Halal Cosmetic Market: Recent Developments

• In August 2021, Kao Corporation, a Japanese manufacturer of halal-certified cosmetics, collaborated with Lion Corporation to create recyclable packaging and reduce the planet's plastic footprint. Lion Corporation is a detergent, soap, medication, and oral hygiene product manufacturer.
• In June 2021, Kolmar, based in South Korea, announced plans to expand into the Middle East and North Africa region, where it will supply halal-certified cosmetics to a diverse range of customers.
• In November 2022, Iba Cosmetics collaborated with the Singapore-based Believe Company. Believe has invested US$ 10 million in a partnership with Iba Cosmetics to distribute and expand their retail market space across operating countries such as the Middle East, Europe, and South Asia. Shop for Cosmetics, Skin Care, Hair Care, Hair colors & Makeup online at Iba Cosmetics
• In April 2022, The new line of cosmetics from Inika Organic is called Pure with Purpose. The group of products also includes eyeshadow quads, a brow palette, hydrating toning mist, and lash and brow serum. These goods are allegedly cruelty-free, halal, and vegan certified.
• In December 2021, the dUCK Group has expanded its presence in Singapore with the opening of a new retail cosmetic store. The store occupies 1,800 square feet on Haji Lane in Singapore. The store sells its exclusive, newly launched collection as well as limited edition pieces.

Asia Pacific Halal Cosmetic Market: Key Companies

Key players operating in Asia Pacific halal cosmetics market include INKIA Martha Tilaar Group, Wipro Unza, Clara International, Ivy Beauty Corporation, Sdn Bhd Overview, Paragon Technology & Innovation, and Brataco Group of Companies.

*Definition: Halal cosmetics are cosmetics that are free from products that are forbidden by the Islamic religion. Halal cosmetics are considered one of the key innovations for the Muslim population. Moreover, these products are certified by the Islamic religious department in Malaysia. These products do not cause any health hazards as it does not use animal products such as fats, gelatin, or other harmful chemicals. Halal products are gaining huge demand among the Muslim population as well as non-Muslim populations. Halal cosmetics can be classified into skincare, color cosmetics, hair care, and fragrance products. Out of which, skincare segments are gaining huge traction in the market due to the rising number of Muslim populations around the globe.