Halal cosmetics and personal care products are safer than other chemically manufactured cosmetics, as Islamic law prohibits the use of ingredients and chemicals that affect the human skin.
According to Research & Markets, the segment is estimated to be worth US$ 1,411.2 Mn in 2014 and is anticipated to expand at a CAGR of 9.9% during the period; 2015-2020.
Colour cosmetics is dominating in terms of revenue with a 37.4% market share, likely to exhibit the highest CAGR of 10.2% over the next five years with rising y-o-y growth.
The market researcher says it is likely to maintain this dominance with a 38.0% share by 2020, reflecting an increase of 60 BPS over the forecast period.
Skin care segment is hot on its heels...
Meanwhile, the skin care segment was valued at US$ 453.4 million in 2014 with 32.1%, and is expected to gain its market share by 10 BPS through 2020.
Increasing awareness about transdermal nature of cosmetics is another driver for the growth of the Halal organic cosmetics market in Asia Pacific.
Market leaders include; INIKA, Martha Tilaar, Wipro Unza, Clara International, Brataco Group Of Companies, Ivy Beauty Corporation Sdn Bhd, and Paragon Technology & Innovation.
'Big players have no option but to enter halal market,' says Euromonitor
The success of the halal cosmetics segment is attracting the attention of manufacturers and global companies such as Unilever who need to maintain their share in markets where these products are becoming more popular.
The increase in demand, according to Oru Mohiuddin, beauty and personal care senior analyst at Euromonitor, is offering great opportunities, as it is still not a very crowded space.
At present the halal cosmetics segment is relatively free of the multinational players, which may be down to local players having a better understanding of the religion; however Mohiuddin says Unilever is considering it, and that there is good scope for Colgate and P&G too.
“This segment is mostly populated by local players. Some well-known ones are Wardah in Indonesia, IBA in India, Layla Mandi in North America,” she tells Cosmetics Design.
It is because of Wardah and IBA, which are denting the Anglo-Dutch giant’s share in their respective markets, that Unilever will be taking a serious look at halal cosmetics.
“This means there is no longer an issue of opportunity for some multinationals,” says Mohiuddin. “Companies such as Unilever are left with not much option other than to enter the segment given their shares are potentially threatened in markets where they have a strong presence.”