BE2C2 Report — The global halal cosmetics market is expected to reach $54.16 billion by 2022 from $20.25 billion in 2015, registering a CAGR of 15.2 percent during the forecast period — growing consumer awareness toward halal cosmetics is the market driver, while maintaining the integrity associated with halal cosmetics being the biggest market challenge, says a study.
According to the report, Malaysia and Indonesia together accounted for nearly 60% of the Asia Pacific revenue in 2015, with skincare and makeup being the dominant products consumed. Personal care and beauty-care launches in Malaysia outnumbered UK and Philippines.
Countries such as India, Malaysia, Indonesia, Bangladesh, Pakistan and Maldives are characterized by considerable Muslim population and improving socio-economic conditions, therefore the above stated factors are crucial for halal cosmetics growth globally — Asia Pacific accounts for nearly 45% of the global Muslim population, the report added.
The Middle East is also a very important consumer hub for the industry, particularly considering high income levels in the UAE, Saudi Arabia, Jordan, and Oman. Furthermore, as a more structured Islamic society, the region is a natural growth driving factor for the global industry, the report added.
The fragrance market is expected to register the highest CAGR of 15.8 percent in the halal cosmetics market, owing to increase in demand for “attar” sprays among Muslim consumers, according to the report published by Oregon-based Allied Market Research titled, “Halal Cosmetics Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2014-2022.”
Latin America, Middle East, Africa (LAMEA) is expected to dominate the market due to the increase in Muslim population, the rise in purchasing power, and the growth in demand for personal grooming products that adhere to Islamic requirements.
Asia-Pacific is also expected to register a significant growth rate owing to the increase in Muslim population in nations such as Indonesia, Malaysia, Singapore, and India.
Halal certification enables Muslims to identify the products which adhere to their religious requirements. However, rules and regulations pertaining to the authenticity of a halal ingredients vary across different countries. The lack of a global standardized set of halal-specific guidelines is a major factor that restrains the growth of the halal cosmetics market.
According to Grand View Research, this combination of factors would favor eco-ethical modern consuming behaviors and would drive the overall growth of the halal cosmetics market over the next nine years. “With the help of advertisements and promotion incentives offered by companies, the level of consumer consciousness has increased in the recent past and is fostering the growth of these segments in relatively smaller countries,” explains the market research firm.
Among the product types, the fragrance segment is expected to have the highest CAGR during the forecast period, followed by color cosmetics.
The color cosmetics segment is expected to account for $17.91 billion in 2022 from $6.64 billion in 2015, registering a CAGR of 15.3 percent.
Halal color cosmetics have widespread adoption among Muslim women, especially in the younger generation.
Halal color cosmetic products include a broad array of products such as lipsticks, hair color, blushes, lip balms, and others.
The demand for halal cosmetic products in the overall halal cosmetics industry is expected to be driven by the increase in purchasing power of the growing Muslim population and significant desire among young Muslim women to associate their interest in fashion and makeup with Islamic requirements.
The haircare segment generated the highest revenue in 2015, and is expected to grow at the CAGR of 14.1 percent during the forecast period.
The personal care segment accounted for the highest revenue in 2015, and is expected to have a notable CAGR of 14.6 percent. With growth in demand for e-commerce sales, the online distribution sales channel is expected to grow at the fastest rate of 18.2 percent by 2022.
According to a report in the Arab News, the trade volume of halal products worldwide is said to be worth about two trillion dollars, of which 700 billion dollars is in the Islamic markets.
The report identifies key players operating in the market including Amara Cosmetics, Inika, Martha Tilaar Group, MMA Bio Lab, The Halal Cosmetics Company.
Other prominent vendors include: Clara International, INGLOT Cosmetics, Ivy Beauty, Liasari, Muslimah Manufacturing, OnePure, Paragon Cosmetics, Pure Halal Beauty (PHB) Ethical Beauty, Saaf Skincare, Samina Pure Makeup, SirehEmas.
Note: CAGR is abbreviation for Compound Annual Growth Rate.
BE2C2 is a business unit of Irshad Salim Associates which produces reports, infographics, analytics and analyses based on data and information from sources readily available on the web and in the public domain.
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