Halal cosmetic products refer to personal care items that are manufactured following Islamic guidelines. These products do not contain any ingredients derived from animals or other sources prohibited under Islamic law. The demand for halal cosmetics is growing significantly in Asia Pacific due to the rising Muslim population in countries such as Indonesia, Malaysia, Pakistan, and Bangladesh. These products comply with religious requirements and are considered safe for usage. Moreover, a large number of consumers are shifting towards natural and organic personal care items due to rising health awareness.
The global Asia Pacific Halal Cosmetic Market is estimated to be valued at US$ 3.59 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Many Muslim consumers prefer cosmetic products formulated with natural ingredients that are non-animal, chemical-free, and eco-friendly. The rising health consciousness and environmental sustainability movement have further boosted the popularity of organic personal care items. Halal cosmetic brands can capitalize on this trend by introducing organic-certified cosmetics that align with Islamic values and wellness needs of consumers. With more consumers opting for green products, the demand for organic halal cosmetics is expected to grow substantially in the upcoming years. Formulating products with plant-based and naturally derived ingredients can help halal cosmetic companies garner a larger market share in the Asia Pacific region.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the cosmetic industry require large capital investments and R&D expenses to launch new products. However, growing demand for halal certified products provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of various players offering similar products. Buyers can opt for substitutes easily if not satisfied.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in cosmetics such as oils, herbs etc are available from multiple suppliers.
Threat of new substitutes: The threat of new substitutes is high as players are continuously launching new products with natural ingredients to attract health conscious consumers.
Competitive rivalry: The competitive rivalry is high due to presence of established brands offering similar products. Players focus on product innovation, promotional activities and certifications to gain higher market share.
SWOT Analysis
Strength: Rising demand for organic and natural products provides an opportunity for halal certified cosmetic brands to capture market. Increasing disposable income in Asia Pacific fuels the market growth.
Weakness: Certification process is complex and lengthy which increases the cost of the products. Lack of awareness about halal certification in some countries.
Opportunity: Growing awareness about halal lifestyle and increasing Muslim population offers huge market potential. Entering new geographic regions presents new opportunities.
Threats: Presence of local and non-halal brands providing substitutes at lower prices affects the revenue growth of halal brands. Stringent regulations regarding ingredients and manufacturing process increases compliance cost.
Key Takeaways
The Global Asia Pacific Halal Cosmetic Market Size is expected to witness high growth during the forecast period led by rising muslim population, increasing disposable income and growing awareness about halal certified products. The global Asia Pacific Halal Cosmetic Market is estimated to be valued at US$ 3.59 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031.
The Southeast Asian countries dominate the Asia Pacific halal cosmetic market owing to large muslim populationbase and strong GDP growth in key economies. Indonesia represents the fastest growing market owing to growing middle class, rising Islamic fashion trend and changing consumer preferences.
Key players operating in the Asia Pacific halal cosmetic market are Daver, Clara International, SAAF International and Ivy Beauty Corporation. Players focus on innovation, certification, marketing campaigns to expand their consumer base and gain higher market share. Halal certification helps brands in penetrating international markets and establishing trust among consumers.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it