The data was according to the state of the world Islamic economy Report2019/20 published by DinarStandard and Salaam Gateway.
Reports cite the United Arab Emirates as an attractive country to invest in the production of halal nail polish, the United States for its product development and diversification into halal face cream, and Indonesia for its production of perfumes and perfumes.
According to the report, the Organization of Islamic Cooperation (OIC) countries are highly dependent on the import of halal cosmetics.
Few of the OIC countries produced halal cosmetics, with non-Muslim majority countries such as South Korea being the main producers.
Halal cosmetic spending
Muslim spending, comprising 1.8 billion consumers, on cosmetics worldwide increased 4.9%, from US $ 61 billion in 2018 to US $ 64 billion in 2019. Muslims do not represent only 8% of the 8 trillion US dollars of global spending on cosmetics.
The top four Muslim cosmetics consumer markets in 2018 were India (US $ 6 billion), Indonesia (US $ 4 billion), Russia (US $ 4 billion) and Malaysia (US $ 4 billion). US dollars).
According to the data, halal product launches accounted for 2.7% of all launches in the global beauty and personal care category between 2017 and June 2019.
By 2024, Muslim spending on cosmetics is expected to increase 6.8 percent to $ 95 billion.
Request for natural, organic, vegan
Global consumer demand for ethical, vegan and environmentally friendly products has also been reflected in halal cosmetics.
“As a result, halal brands get other certification labels to help sell their products, and vice versa, organic, natural and vegan brands get halal certification to have greater appeal in the market.The report said.
Citing South Korea as an example, the country exported double its herbal cosmetics to OIC countries compared to 2018, and a dozen South Korean cosmetic manufacturers have applied for halal certification in the country. over the past year to export their own brands as well as manufacture for Malaysian. brands.
The report states that there is an opportunity to tie natural and organic labels to halal cosmetics standards, which leads to increased exports. In this way, they can serve both OIC markets and Muslim millennials in non-Muslim majority markets.
As consumers increasingly emphasize sustainability and ingredient traceability, halal cosmetic brands have used technology to set themselves apart.
For example, Malaysian halal cosmetics brand Miss Elwani has joined a global halal blockchain registry integrated with the Verify Halal app.
South Korean company Se Jung Shipping is applying for halal certification for its trucking service and is developing a traceability application.
Malaysia also launched a blockchain-based halal digital chain, HADIC, which also covered the cosmetics sector.
Although the report acknowledges: âBlockchain is gradually being adopted but it is still too early to measure its economic impact. There are significant opportunities for investors in halal cosmetics start-ups and for multinationals to develop dedicated halal certified product lines.. “
Halal interest in South Korea
According to the report, the halal cosmetics sector has not received much support from OIC governments, especially compared to South Korea, where the Ministry of Food and Pharmaceutical Safety offers free training sessions on certification of halal cosmetics.
South Korea had recently signed a memorandum of understanding with the Halal Development Corporation of Malaysia, to produce halal cosmetics in Malaysia.
South Korea’s cosmetics exports to OIC countries increased 46.2% to reach US $ 232.5 million in 2018. Its world exports also increased by 26.5% to reach 6 , 26 billion US dollars, in part thanks to halal certification.
For example, one of the South Korean cosmetics manufacturers, Aekyung, has had one of its brands certified as halal by the Indonesian MUI.
The report explained that halal regulations for the sector have remained fragmented, with few OIC countries introducing or revising standards. He called for greater regulatory alignment to support export growth.
The halal sector continued to remain a niche globally, with multinationals investing in other cosmetic sub-segments instead.
However, it was hoped that Indonesia’s mandatory halal certification requirements could change perceptions of the halal cosmetics market, given the country’s population of 260 million.
The report concluded that investing in early stage, high-growth halal-certified cosmetics companies could potentially generate substantial returns given the tightening of regulations on halal cosmetics and the growing demand for eco-friendly halal cosmetics. ‘environment.