Halal Cosmetics: Issues and Opportunities for Muslims

Currently, there’s a huge demand for halal cosmetic products among Muslims.

And due to their purchasing power, the desire to look attractive, Muslim consumers are now spending more on cosmetics and personal goods, covering various categories such as cleaning body parts, enhancing features, and changing skin tones and colours such as makeup, perfume, toothpaste, shampoo, and deodorant.

Muslim consumers are now choosing halal cosmetic products over any other kind, and the trend is catching up. The halal cosmetic industry in Malaysia is worth over USD800 million, with an annual growth rate of 24 per cent.

Back in 2011, in Malaysia, there were 114 local cosmetic manufacturers in the industry certified as halal. In 2013, the export of Malaysian halal cosmetic products was about RM464.45 million, with the products reaching as far as the United States, the Middle East, China, ASEAN, and Europe.

Issues Facing Halal Cosmetic Products

Even though there’s a high market demand for halal cosmetics and personal care products, the industry is fast-paced and very competitive, requiring rapid product development and innovation.

Several halal cosmetic studies have found different factors associated with halal cosmetics, including halal principles, product reliability, product commitment, intention to choose halal cosmetics products, trust, environmentally friendly, attitude, religious beliefs, and product innovations.

The future growth for halal cosmetics and personal care products is powered by the growing demand for safe, natural products that fit consumers’ religious and cultural beliefs.
Therefore, the manufacturing of halal cosmetics is viewed as a kind of innovation in the skincare and cosmetics industry. The manufacturers of halal cosmetics are now forced to design new technologies in research and development, formulation, and production.

Another issue that the halal cosmetic industry is faced with is that the global cosmetic industry is dominated and monopolized by non-Muslim companies. It presents a serious issue of introducing halal ingredients in cosmetic products manufactured by the companies.

In addition, the stiff competition in the industry has resulted in Halal cosmetics competing with other socially conscious products that have already established brands in certain countries.

Furthermore, due to the ongoing conflicts in the Middle East, Western consumers may have a negative disposition with companies with ties with Islam, which could trigger an aggressive response.

Irrespective of these issues, the demand for halal cosmetics continues to grow due to brand awareness, knowledge among Muslim consumers, and the benefits of the products. Therefore, as a Muslim entrepreneur into halal cosmetics, one must emphasize the advantages of the products and continue to innovate to improve the quality of the products.

Opportunities for Muslim Entrepreneurs into Halal Cosmetics

Asia, Middle East, Europe, and America are the most promising halal markets where Muslim entrepreneurs can leverage and get a good ROI. With a growing consumer base across the world, the halal cosmetics industry is set to become a competitive force in world international trade.

Expanding beyond the food industry, the halal industry is further widening the economic potential for halal cosmetics. Also, the Asia Pacific region is fast becoming a dominant region for halal cosmetics because of the considerable numbers of the Muslim population and improving socio-economic conditions. It is an excellent opportunity for Muslim entrepreneurs to gain access to global markets through eCommerce.

Urbanization has greatly impacted the consumer lifestyle and options, making sophisticated consumers demand convenience and functional products in packaging, application, and delivery format.

Therefore, with many affluent consumers available to pay for premium brands or more expensive products, Muslim entrepreneurs should introduce new products with convenience and functional benefits.

In today’s market, personal care and cosmetics no longer apply to women alone. Men, especially those in urban areas, are now showing interest in personal care and cosmetics to enhance their appearance.

This interest also opens up new opportunities for Muslim entrepreneurs and OEM cosmetic manufacturers to introduce several halal cosmetics and brands specifically designed for men to help solve their skin challenges and enhance their appearance.

Final Thoughts

Halal cosmetics are becoming a global need. With Muslims across the world increasing in number, and are expected to reach over 1.5 billion in the next few years, there will be a new wave in the cosmetics market, which will result in demand for cosmetic products that meet religious and cultural needs.

As a smart Muslim entrepreneur, interested in, or already into the cosmetic business, you don’t have to purchase equipment or carry out any tasking or expensive research to develop a cosmetic product.

Contact an OEM cosmetic manufacturer, such as Ori Bionature to have your halal cosmetic products formulated, designed, and packaged to your specifications. And all you have to do is market your product and get a good return on your investment.

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