Sector growth and consumer education in halal cosmetics and personal care

Halal cosmetics is a growing sector. Its potential market is currently estimated at $53 billion, rising to $80 billion by 2020.  Given its large size, standards, regulations and consumer awareness are evolving rapidly.

Issues such as obtaining halal certification for cosmetics has hence become more pertinent. This is inevitable since halal includes the welfare of animals, and so testing products on animals would be considered masbooh (doubtful) because of the harm it could do to the animal. It also allows one to appreciate that halal is not just about animal-based ingredients in products which may be haram (forbidden), but also includes the aspect of tayyib (pure) during production.

GROWTH IN AWARENESS OF HALAL PRODUCTS

Comparatively, the global Muslim cosmetics market is the fourth largest market, after the three largest countries by cosmetics spend.  

Cosmetics expenditure is the highest in the U.S. ($81 billion), followed by Japan ($79 billion) and China ($60 billion).

Muslims are becoming increasingly aware that many cosmetics and personal care products contain haram or potentially harmful ingredients.

Indian company Ecotrail, which is behind the Iba brand of halal-certified cosmetics and stores, moved into the halal market when they discovered that there was a myriad of non-halal ingredients such as pig fat and other animal-derived ingredients such as lanolin, keratin, and gelatin.

Many popular cosmetics brands also use alcohol and harmful chemicals such as sulfates and parabens.

On the company’s website CEO Mauli Teli says that, “The true meaning of halal and its appeal is as a symbol of purity, integrity and authenticity.”

Many other niche cosmetics companies have this as part of their company philosophy to instill consumer confidence in their products.

ALSO FOR MEN

Additionally, halal-certified personal care products are not just for women. Products aimed at men, particularly skin-care lines, have resulted in the boost in popularity of cosmetics in recent years.

According to Euromonitor, consumers in Asia account for 64 percent of the global men's skin care market growing at a rapid 9.4 percent annually.

REGULATIONS

Halal standards for cosmetics are now becoming established. Halal standards and guidelines have been produced for the certification of cosmetics in Malaysia, Brunei and most recently in the UAE as a part of the Standards and Metrology Institute for Islamic Countries (SMIIC) halal standards being produced for the Organisation of Islamic Cooperation (OIC).

Good Manufacturing Procedures (GMP) compliance is also a necessity. Manufacturers will also need to comply with GMP and also national government regulatory bodies such as the State Food & Drug Administration which will have their own regulations to adhere to.

GMP help to control the regulation for manufacturing cosmetics, and they have become much more stringent recently, especially in Europe. This has caused many small home producers of personal care products to go out of business.

Risk assessment of the use of colorants, parabens and nanomaterials in cosmetics is essential, plus amendments to animal testing protocols are in progress in Taiwan, India and Korea.

Parabens have been banned by many manufacturers already, and is stated on their labels. However nanomaterials are very controversial in general and ongoing research and scientific study is in progress to draw final conclusions on their widespread use, as it could be considered haram due to their detrimental effects on the body.

APPEALING TO MUSLIMS AND NON-MUSLIMS

Most halal cosmetics focus on natural ingredients, eco-friendliness and fair trade. Some are also vegetarian and vegan, so there is an opportunity to market them to non-Muslims who are already consumers in these sectors.

Both UK-based PHB Ethical Beauty and Ecotrail target a wider consumer base with products that are not only halal-certified but also cruelty-free, and free from harsh chemicals. In the case of Iba, products are organic and free of animal-derived products to maximize their reach.

“One of the challenges in marketing is that there is a long way to go in terms of raising awareness and understanding amongst consumers on how halal is relevant to cosmetics, and its relevance beyond food. This applies to both Muslim and non-Muslim customers,” says Ecotrail’s Teli.

“To understand halal correctly,” she continues, “you must also include the importance of good hygiene, safety and purity.”

In the UK, the Founders of PHB Ethical Beauty, who have international distribution and stores, decided to cater for those looking for added purity in their products to guarantee their products are free from harsh alcohols and GM ingredients. They believe being halal-certified has definitely been to their advantage in ensuring their products are as natural and ethical as possible, giving them wider consumer appeal.

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