SOUTH EAST ASIA HALAL SKINCARE MARKET ANALYSIS

The increase in skincare products is vast in among almost all world regions. Females mostly prefer skincare products, but nowadays, men even use them to enhance their look. Therefore, skincare products are no longer gender-specific. Skincare products are categorized into various types; Halal skincare products are one of the types. Halal skincare products are those where no animal product is used; it is completely free from animal-derived ingredients and is named halal according to Islamic law.

The Halal skincare market is estimated to surpass US$ 1,214.0 million by the end of 2030 in terms of revenue, exhibiting a CAGR of 10.8% during the forecast period (2022 to 2030).

Drivers

Halal skincare products do not include substances such as pig fat and other animal-derived ingredients such as lanolin, keratin, gelatin, as well as alcohol and harsh chemicals like sulfates, parabens, etc. Demand for halal testing is on the rise in South East Asia due to growing awareness about halal products among consumers of specific communities, as they ensures authenticity and integrity of cosmetics products. Additionally, an increasing number of consumers are becoming aware of the transdermal nature of cosmetics and are concerned about the nature of the ingredients their bodies absorb. This concern as well as increasing demand for healthy products in South East Asia is driving the growth of the halal skincare products market in various countries of South East Asia such as Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Market Restraints

The skincare market is dominated by established western brands. These brands are widely available and easily accessible by consumers. Major non-halal cosmetic brands such as The Body Shop, 100% Pure, Eccobella, and many more are easily and widely available. These are perceived by some consumers as substitutes for cosmetics that do not conform to halal certification. The influence of westernization including western cosmetic brands that are not halal certified is still one of the major concerns for the South East Asia halal skincare market growth. All the above factors are expected to hamper the target market growth over the forecast period.

Market Trends

Rising Muslim population in South East Asia is one of the major trends augmenting the growth of the region’s halal skincare market. Hence, manufacturers are focusing on manufacturing products that cater to the specific needs of this section of the population. For instance, in December 2019, according to data published by The Wisconsin Economic Development Corporation (WEDC), a public-private agency in the state of Wisconsin designed to assist business development and innovation, Malaysia’s domestic market is strong, as 60% of its population of 32 million practices Islam and the country is also a leading destination for Muslim travellers from around the world. Moreover, The Wisconsin Economic Development Corporation (WEDC) also stated that Indonesia is also the number-one Islamic food consumer market in the world, with consumer spending of US$ 173 billion in 2018, according to the State of the Global Islamic Economy Report 2019-20.

Figure 1. South East Asia Halal Skincare Market Revenue Share (%), By Product Type, 2020

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Among product type, cream & lotions segment held a major market share of 47.5% in 2020 and is expected to retain its dominance throughout the forecast period. Consumers significantly utilize skincare products to keep their skin healthy and glowing. Awareness and acceptance of halal skincare products among consumers contribute to the popularity of halal certified skincare products.

Figure 2. South East Asia Halal Skincare Market Revenue Share (%), By End User, 2020

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Among product type, Women segment held a major market share of 45.1% in 2020 and is expected to retain its dominance throughout the forecast period

South East Asia Halal Skincare Market - Impact of Coronavirus (COVID-19) Pandemic

The impact of coronavirus pandemic on South East Asia has been largely disruptive in terms of economic activity as well as loss of human lives. Almost all sectors have been adversely affected, as domestic demand and exports sharply declined. The South East Asia sub region negatively affected by the COVID-19 pandemic. The COVID-19 disrupted the value chain of halal skincare industry at all points and scales. The outbreak of the COVID-19 disrupted most of the supply chains of South East Asia halal skincare market. There has been logistics issue, owing to the less availability of manpower. The manufacturing of raw materials such as of surfactants, colorants, proteins, vitamins, plant extracts, plants, soil, water, preservatives, and antioxidants etc.  were halted due to Covid-19 restrictions.

Competitive Section

Major players operating in the South East Asia Halal Skincare market include Amara Halal Cosmetics, Andalou,Clara International Beauty Group, COSMECCA KOREA, COSRX, Ecotrail Personal Care Pvt. Ltd., Halal Korea Co., Ltd., INGLOT Cosmetics, INIKA organic, IVY Beauty Corporation, KOLMAR KOREA, SO.LEK Cosmetics, and Talent Cosmetics.