Halal leads cosmetic packaging trends dominating the market

06-Sep-2016 - Last updated on 06-Sep-2016 at 12:54 GMT

As popularity for Halal packaging grows within the Asia-Pacific region, companies are introducing innovative and creative cosmetic packaging to appeal to its consumers.

A prominent trend within the Asian market, aesthetic and innovative packaging has provided brands with a means to create a competitive advantage within the beauty and cosmetics sector.

A recent report, released by Research and Markets, entitled ‘Global Cosmetic Packaging Market’, reveals that between 2014-2020, the Asia-Pacific (APAC) region is expected to see the fastest growth in cosmetic packaging.

In 2014, the global cosmetic packaging industry market was worth $24.3 billion. This growth is projected to reach $31.4 billion by 2020, representing an an annual growth rate of 4.3%, the report announced.

To date, it is “Japan and South Korea who have produced the most innovative cosmetic packaging in Asia-Pacific,” says Jessica Simon, Assistant Event Manager, Beauty Indonesia.

Simon puts the importance of consumer packaging down to changing consumer behaviours: “Shoppers in APAC are savvy shoppers; they are not loyal to a single brand and so brands have to create something that grabs the consumer’s attention”.

Launched in China in 2013, Etude House is one such brand innovating its packaging. Famous for its princess identity, it has become synonymous with cute packaging. Japanese-brand, Shu Uemura has the art of beauty as its slogan. Another popular and forward-thinking brand in APAC, it focuses on delicate and beautiful packaging to build engagement with its consumers.

Growth of Halal Packaging

With halal foundations, blushers, lipsticks, anti-agers and skin whitening products, Halal beauty is a dominant trend.

As Halal certified products and service awareness grows, and with Halal certification becoming increasingly present, brands are able to increase the marketability of their products.

A Euromonitor International report, entitled’ Doing Business in the Halal Market: Products, Trends and Growth Opportunities’ states that Indonesia is projected to grow at over 9% compound annual growth rate (CAGR) between 2014 and 2019.

When compared with the global growth projection of 3% CAGR, Indonesia is expected to be the sixth leading market to drive this growth in the industry.

“Most of the local companies in Indonesia are producing Halal beauty products due to government regulations due out in 2017 stipulating that it’s mandatory for cosmetics to be certified Halal,” Simon went on to say.

Emerging Trends

Eco-Friendliness

Premium brands are now creating renewable and recyclable packaging materials as a sustainable alternative to traditional materials within the cosmetics industry to deliver this message of eco-friendliness to consumers.

Methods typically include using incorporating natural or colorless closures, sustainable wood finishes and high-quality recycled plastics.

Kidult/K-pop

Increasingly, brands are becoming innovative and creative with their brand identities and are communicating this through their packaging. Following the popular Korean Gwiyomi (meaning "cute") trend, which sees confectionery and animals feature on the product’s packaging, the APAC region are continuing this trend through playful and fun packaging.

“Themed makeup collaboration is also used by cosmetic companies to create cute and attractive products (packaging); they include movies, messaging apps and cartoon characters,” adds Simon.

Smart Packaging

Cosmetic brands are also focusing heavily on implementing digital innovations into their packaging to enable them to become both interactive and identifiable. Popular methods include quick response codes, advanced barcode technology and near-field communication (NFC) to help build long-term loyalty and engagement between brands and consumers.

Industry Response

As developing trends focus on the beauty and cosmetics sector, UBM, the largest trade exhibitions organisers in Asia has launched Beauty Indonesia. The B2B trade show will take place between 19 -21 April 2017 in Jakarta, Indonesia.

Aimed at industry professionals UBM states that the trade event will serve as a platform for innovation, research, business growth, development and education.

It will focus on international participation within all beauty sectors, including ingredients, packaging & machinery, contract manufacturing, finished cosmetics, toiletries & personal care, wellness & spa, natural health, beauty salons, professional hair, nail and accessories.

“Halal packaging is one trend that we expect to see at the Beauty Indonesia show, especially since Indonesia is one of the biggest market for Halal beauty products in the region,” says Simon. “Halal beauty products is expected to be one of the highlights of the Beauty Indonesia event, along with Men’s Care and Ingredients.”