Eco-ethical trend
Adoption of vegan, natural and organic products by younger consumers wing to the supposed risks associated with conventional beauty-care products is also expected to fuel demand for ethical products. Increasing number of Muslims gaining higher education level is another factor for the shifting trends and usage of products perceived as being safer and of higher-quality.
These consumers are worried about the ingredients used in conventional personal care and beauty products and try to avoid substances they view as potentially harmful. Furthermore, some Muslims consumers are especially interested to shop for personal care and beauty-care brands that are sharia compliant and prefer not use products containing substances such as pork fat, non-halal animal derivatives, and alcohol.
According to Grand View Research, this combination of factors would favour eco-ethical modern consuming behaviours 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.
However, the halal certification is not another natural or environmentally friendly label. Indeed, silicone-based polymers such as methicone and dimethicone are considered sharia compliant and are widely used as anti-foaming agents in skin care applications. Polyethylene glycol, hexylene glycol, butylene glycol, dipropylene glycol, and ethoxydiglycol are some other ingredients that are considered to meet sharia prerequisites and may be used in halal beauty care formulations.
The growth of the overall demand is also largely driven by a growing number of Muslim women trying to integrate religious observance with fashion developments along with rising purchasing power of these consumers.
Skin care and Asia drive market growth
As far as product categories are concerned, Grand View Research forecasts skin care products to witness the highest CAGR [1] of 12% over the forecast period (2014-2025). Actually, according to the market research firm, consumers are very sensitive about the quality of the substances they widely apply on their skin and they may consider safer to use sharia compliant beauty care items over their conventional counterparts. To date, the demand for halal certified items has witnessed the most significant increase in the skin care as well as in the hair care categories. In 2015, the hair care category accounted for over 15% of the overall halal beauty revenue share.
The Asia Pacific region is expected to witness an estimated CAGR of 12.6% over the forecast period (2014-2025). South East Asian countries such as Indonesia, Malaysia, South Korea, Singapore and Thailand are expected to witness significant growth owing to rising Muslim population along with large untapped potential in developing economies.
The Middle East & Africa region is anticipated to witness significant growth owing to the local domination of Islamic ethos. Lack of certification body in the region is expected to attract industry participants from developed regions such as the U.S., UK and Germany. The region accounted for over 17% of the overall halal beauty revenue in 2015.
