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Indonesia poised to lead booming halal cosmetics market
The biggest economy of Southeast Asia, Indonesia is also the country with the largest Muslim population.
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Illustration photo. Indonesian cosmetics are gaining ground at home and in markets of Southeast Asia. (Dew It/Dew It)
E
xports of halal products from Indonesia surged last year and a new regulation is expected to lend additional support to domestic brands.
Outgoing shipments reached Rp 656 trillion (US$41.2 billion) between January and October 2023, Trade Ministry Director General of National Export Development Didi Sumedi revealed on the ministry’s website on Dec. 19.
The government has long hailed Indonesia's potential in the halal economy, based on the country’s Muslim population, which is the largest of any country.
The domestic cosmetics industry grew from 913 companies in 2022 to 1,010 in 2023, Coordinating Economic Minister Airlangga Hartarto said in February.
Data on his office’s website also show that cumulative exports amounted to $770.8 million for fragrances, essential oils and other cosmetic products from January through November 2023. Most exports, according to government data, went to countries in the region, including Thailand, Vietnam, Malaysia, Singapore and the Philippines.
The latest Indonesia Halal Economic Report estimates that the market value of the domestic halal cosmetics sector reached $4.19 billion in 2022 and outperformed the overall economy with annual growth of 8 percent.
The global halal cosmetics industry has also seen significant growth, with the State of the Global Islamic Economy (SGIE) Report estimating the Muslim spend on cosmetics at $84 billion in 2022 and forecasting an increase to $129 billion in 2027.
