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Halal beauty market: Primed for change?
Halal cosmetics were estimated to make up 11 percent of a global halal market worth more than $1 trillion in 2015, according to Deloitte Tohmatsu Consulting, and Indonesia is a hotbed for further growth in the eyes of many foreign manufacturers.
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Halal cosmetics were estimated to make up 11 percent of a global halal market worth more than $1 trillion in 2015, according to Deloitte Tohmatsu Consulting, and Indonesia is a hotbed for further growth in the eyes of many foreign manufacturers. (Shutterstock/*)
T
he global Muslim population is expected to reach 2.6 billion, or 30 percent of the total world population, by 2050 and by 2019 annual global spending by Muslim consumers will reach an astronomical US$73 billion. Such growth — both in population and spending power — is putting a spotlight on the Muslim consumer market, and that includes beauty. Halal cosmetics were estimated to make up 11 percent of a global halal market worth more than $1 trillion in 2015, according to Deloitte Tohmatsu Consulting, and Indonesia is a hotbed for further growth in the eyes of many foreign manufacturers.
Yet a new challenge lies ahead which could spell a major change in the landscape as manufacturers — large and small, international and local — must adopt to new, more regulated, manufacturing procedures. The Halal Product Certification Bill passed by the Indonesian government in 2014 requires all products sold in Indonesia to be halal-certified by 2019. So what lies ahead for Indonesia’s burgeoning beauty market?
Indonesian consumers, especially those in the millennial generation, are taking a greater interest in beauty and are more willing to show it. Indonesia’s Miss World Muslimah Pageant is testament to changing attitudes, celebrating the pursuit of holistic beauty while retaining a Muslim woman’s modesty.
Meanwhile changing attitudes among female Muslim consumers are supported by greater access to information on products and ingredients, fueling more willingness to spend on beauty products and services. Access to beauty forums and blogs allows for active discussions on whether beauty brands and products contain “halal” (permissible) or “haram” (non permissible) ingredients.
While it is mandatory for practicing Muslims to consume only food and beverages that are halal, until now the use of halal beauty products has been less strictly enforced. Regardless, there is a strong latent demand for halal certified or halal-friendly products which empower Muslim women to feel they can be beautiful in a way that does not violate their religious beliefs — essentially giving them a conflict-free consumption experience.
For beauty products to be considered halal they must not contain alcohol and be free of substances derived from “unclean” or “forbidden” animals such as pigs, dogs, insects and reptiles. Yet most beauty products by mainstream brands contain animal-derived substances, such as gelatine, or alcohol, making them unsuitable for Muslim consumers. Cruelty to animals (i.e. animal testing) is also not permitted under Islamic laws, and the equipment used for production and operational practices are also important.
Alongside fully halal-certified products, such as Citra by Unilever, brands that are not halal-certified but do not contain prohibited ingredients, and come from a company with honest business practices which meet the needs and wants of the halal market, have started recording increasing success. Brands like Lush, Simple, Nivea (Pure & Natural range) and Inglot (O2M Breathable nail polish) fit the bill in this way, and are considered “halal-friendly.”
