April 20, 2024
South East Asia Halal Skincare Market

South East Asia Halal Skincare Market Is Poised To Flourish Due To Rising Awareness Regarding Halal Cosmetics

The South East Asia halal skincare market has witnessed steady growth over the past decade owing to rising awareness among consumers regarding halal certified products and ingredients. Halal cosmetics refer to personal care items that are permissible according to Islamic law. They are formulated using ingredients that are pure, safe and contain no animal products or alcohol. The halal skincare industry has emerged as a lucrative segment primarily driven by younger Muslim consumers who seek beauty and personal care options that comply with their religious beliefs.

The South East Asia halal skincare market is estimated to be valued at US$ 673.2 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2030. Rising disposable income, increasing urbanization and modernization of lifestyle have collectively propelled the demand for premium halal certified skincare and makeup products in South East Asian countries. Strict regulation regarding ingredients and production process ensures consumers about purity and quality standards of halal cosmetics.

Key Takeaways

Key players operating in the South East Asia halal skincare are Natron Energy Inc., Faradion Limited, Altris AB, AMTE Power PLC, Contemporary Amperex Technology Co. Limited, NGK Insulators Ltd., and TIAMAT SAS.

The expanding working women population and growing brand awareness through digital and social media marketing are key factors boosting the consumption of halal skincare products in the region. E-commerce platforms are aiding halal beauty brands to reach a wider customer base beyond their domestic markets.

Countries like Malaysia, Indonesia and Singapore have emerged as major production and export hubs for halal certified personal care ingredients. Leading brands are expanding their geographical footprint by opening manufacturing facilities and entering into partnerships with local distributors overseas to tap international opportunities.

Market key trends

The growing demand for organic and natural ingredients in halal cosmetics is encouraging brands to invest more in research and development of herbal formulations. Plant-based skin serums, masks and moisturizers are fast replacing conventional products containing synthetic compounds. Halal skincare brands are launching make-up removal products certified for Muslims to meet their religious requirements. The rising influence of niche halal beauty influencers on social media is a notable trend fueling the popularity of premium halal skincare brands particularly among millennials and Gen Z consumers.

Porter’s Analysis

Threat of new entrants: New companies can enter this market easily as investment required is low and technologies used are not unique. However, established brands have strong brand recognition and distribution networks that discourage new entrants.

Bargaining power of buyers: Buyers have high bargaining power in this market due to presence of many companies and product substitutes. Buyers can negotiate on price easily.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of many ingredient suppliers for halal certified skincare products. Switching costs are also low.

Threat of new substitutes: Substitute products include herbal and ayurvedic skin care options. However, religious restrictions on halal certified substitutes are low.

Competitive rivalry: The market is dominated by large multi-national brands. Smaller brands compete on basis of niche segments, authentic Islamic positioning and affordable price points.

Geographical Regions

The South East Asia region accounts for over 55% of the total South East Asia Halal Skincare Market Share value, led by Indonesia and Malaysia which have over 90% Muslim population each. Strong religious traditions and growing disposable incomes are driving demand in the region.

The fastest growing region for the halal skincare market is Middle East, with countries like Saudi Arabia and UAE expected to witness over 20% CAGR during the forecast period. Rapid urbanisation, rise of nuclear families and increasing awareness about personal care is aiding the market expansion in Middle Eastern countries.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it