Halal Cosmetics Market

Halal Cosmetics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2015 - 2020

  • 2015-06-11
  • REP-AP-521
  • 92 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Halal Cosmetics Market

This study offers a comprehensive, 360 degree analysis on the Halal Cosmetics market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Halal Cosmetics market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

By 2030, for Every US$ 1 Incremental Spending on Cosmetic Products, US$ 0.05 Will be Generated by Halal Cosmetic Products

FMI delivers key insights on the global halal cosmetics market in its latest report titled ‘Halal Cosmetics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2015–2020.’ The long-term outlook on the global halal cosmetics market remains positive with the market value expected to increase at a CAGR of 9.9% during the forecast period (2015-2020). Among product types, the color cosmetics segment is expected to expand at a significant CAGR, in terms of value, over the forecast period. The global halal hair care market is estimated to be valued at US$ 358.3 Mn by the end of 2018.  Southeast Asia is estimated to account for a value share of 61.5% in the global halal cosmetics market by 2018 end and it is anticipated to retain its dominance throughout the forecast period. In this report, FMI throws light on drivers and restraints likely to impact the market during this period.

Muslim Population Wields Massive Power

Muslim population has emerged as a prominent consumer base and holds massive power due to rising disposable income. This has prompted consumer and personal care product manufacturers to capitalize on the emerging latent opportunities. Companies are optimistic with regards to the purchasing power of members of this population and it is more than likely that over the span of the next four to five years, companies will be focused on developing innovative products and designing market level strategies to leverage the potential opportunities emerging due to growing Muslim population consumer base.

Opportunities Opening up in Wider Product Categories

As young Muslim women are combining religious practices with fashion, new opportunities are opening up in cosmetics and personal care categories. In addition to oral care and soaps, which traditionally are dominated by halal product category, a whole new range of halal products, such as skin care, hair care and color cosmetics, are now dominating the category. New products, such as halal foundations, blushers, lipsticks, anti-agers and skin whitening products, have surfaced into the market in the last five years. Nail polish represents one of the most challenging product categories as the pigmented layer conflicts with the ablution process mandatory according to Islam. Nonetheless, market players have now come up with formulations with a permeable texture that allows water to pass through.

The halal cosmetics market has become non-exclusive to Muslims and has gained acceptance among non-Muslim consumers who are now associating halal with ethical consumerism. The appendage of “Halal” is not just a guarantee that the product is permitted for Muslims. “Halal” has become a global symbol for lifestyle choice and quality assurance. This trend is evident by the increasing participation of the population from non-Muslim countries and organizations where Halal is emerging as a standard of choice. Global issues, such as animal welfare, environment protection and sustainability, have paved way for the potential growth of the halal industry. In the last few years, the halal industry has undergone further evolution as the governments have started formulating policies and standards for helping the industry develop its own economy.

Halal Cosmetics Market Dominated by Niche Players

The Halal cosmetics products market is so far dominated by niche players. For example, in Indonesia, Wardah’s share gain in colour cosmetics coincided with share loss of 0.3% points from Oriflamme. Similarly, Unilever’s local brand Citra lost 0.1% point in facial care in the year 2014. For multinationals to succeed in this space, a targeted portfolio is critical along with better understanding of the specific needs of members of the Muslim community. For example, Wardah has a specific range for Hajj/Umrah and multinationals will need to show similar acumen in order to remain competitive.

This trend will evolve over the next three or five years as there are currently a number of regional halal cosmetics and consumer product companies, such as Ivy Beauty Corporation (Malaysia), Wipro Unza Group (Malaysia), Wardah Cosmetics (Indonesia), Farmasi Cosmetics (Turkey), Amara Halal Cosmetics (U.S.), INIKA (Australia), Mihri (Turkey) and Iba Halal Care (India), among others.

Multinationals Face a Gamut of Challenges When It Comes to Halal Cosmetics

It is not only the lure of this white space, but for multinationals, it is also about protecting their shares. Majority of cosmetics and consumer products are produced by global players, such as Avon, Maybelline, etc., which are majorly into production of non-halal products. These global brands are recognized players and have established supply chain and marketing strategies for non-halal products as compared to that of halal products.

While scaling up operations in halal beauty may benefit multinationals, there are still a number of challenges. For instance, consumers are more likely to closely connect with local/ niche brands than a distant multinational headquartered in a non-Muslim country, producing in bulk for a diverse consumer base. Multinationals need to develop a distinct brand identity with a clear marketing message in addition to product certifications.

Certification and Infrastructure Are Essential to Cater to Both the Muslim Consumers as well as a Wider Audience

Global standardization and certification methods are highly fragmented, which creates concerns about the credibility of halal products among consumers. A number of halal certifications agencies, such as government certification agencies and independent certification authorities, exist in the market. Credibility of government certification agencies is higher than that of independent agencies. Preference for halal certification varies from country to country, as most countries have their own halal certification agencies.

There are a number of halal certification authorities globally, of which some are globally accepted. Jabatan Kemajuan Islam Malaysia (JAKIM) is one of the most reputed certificates in the market along with Assessment Institute for Foods, Drugs and Cosmetics, of the Indonesian Council of Ulama (AIDC ICU/LP POM MUI). Currently however, there is no global standard applicable in all countries, but unified halal certification is anticipated to become a reality in near future.

Growth of the Market is the Mirror of Consumer Knowledge

Halal product consumers represent a relatively untapped market and while opportunities exist, cautious steps must be taken. Success of this segment will be primarily determined by providers’ ability to meet market demand by offering genuine and authentic products to Muslim consumers. Halal status should be preserved and not misused. If credibility is lost, consumers will lose confidence in products with Halal status. Success of this segment among non-Muslims will be determined by marketers’ ability to connect emotions.

Segmentation Analysis

The halal cosmetics market is segmented on the basis of product type and distribution channel. Segmentation by product type includes skin care, color cosmetics, hair care and fragrances. Color cosmetics is further categorized into lip care, eye care, face care and nail care. Halal Cosmetics Market Distribution Channel Analysis includes modern trade, company owned stores, salon/spas, e-commerce etc. Company-owned stores are losing their appeal across countries in Asia Pacific. Contribution by company-owned stores was 11.3% to the total Asia Pacific halal cosmetics market in 2017. The segment is expected to lose 360 basis points by 2020 due to growing consumer preference for hypermarkets and supermarkets. By end of 2017, hypermarket/supermarket was the most dominant distribution channel in terms of market share and is likely to remain the dominant distribution channel for halal cosmetics in Asia Pacific until 2020 and will be followed by salons/spas. Internet retailing is expected to be an attractive distribution channels due to wide acceptance by consumers of various age groups across the region.

Regional Market Projections of APAC Halal Cosmetics

The APAC halal cosmetics market is expected to represent significantly high incremental opportunity between 2018 and 2028. The market of halal cosmetics in APAC is expected to represent market value of US$ 2,478.4 Mn by end of 2020.

APAC Halal Cosmetics Market Participants

Detailed profiles of the providers have also been included under the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the Asia-Pacific Halal cosmetics space. Key competitors covered are INIKA, Marth Tilaar, Wipro Unza, Clara International, Brataco Group of Companies, Ivy Beauty Corporation Sdn Bhd and Paragon Technology and Innovation.

Additional Questions Answered

  • key concerns related to Halal Certification

  • How logistics and supply chain management is a critical element (as it requires compliance from source to customer)?

  • Difference in Marketing Strategies of Muslim Dominated Economies and Mix Economies

  • How Advertisement is playing a key role in promoting Halal cosmetics?

  • How Companies are leveraging Social Media & Digital Marketing for Halal Products?

  • Which countries to invest in?

  • Which consumer base to target?

Future Market Insights offers a detailed forecast for the APAC Halal Cosmetics between 2015 and 2020. In terms of value, the market is expected to register a CAGR of 9.9% during the forecast period (2015–2020). The main objective of the report is to offer insights on the advancements in the global APAC Halal Cosmetics market. The study discusses market dynamics that are expected to influence the current environment and future status of the APAC Halal Cosmetics over the forecast period. The primary objective of this report is to offer updates on trends, drivers, restraints, value forecast and opportunities for manufacturers operating in the APAC Halal Cosmetics.

A section of the report discusses how the overall competition in the market is steadily increasing. It discusses various factors that are shaping internal as well as external competition in the market. The APAC Halal Cosmetics market is expected to grow at a rapid pace in near future. Moreover, rapid growth of the halal economy, increasing awareness about transdermal nature of cosmetics, demand for organic/vegan-friendly cosmetics, emerging halal-certified companies, increase in the number of distribution channels etc. are some of the factors expected to create healthy growth opportunities in the APAC Halal Cosmetics market during the forecast period.

The report provides detailed market share analysis of the APAC Halal Cosmetics on the basis of key manufacturers. A section of the report highlights country-wise APAC Halal Cosmetics. It provides a market outlook for 2015–2020 and sets the forecast within the context of the report. The report sheds light on key developments and activities executed by the prominent service providers operating in the APAC Halal Cosmetics market.

Key Segments Covered in the APAC Halal Cosmetics Market Report:

On the basis of product type, the APAC Halal Cosmetics market can be segmented into:

  • Skin Care
  • Hair care
  • Fragrances
  • Color Cosmetics
  • Lip Care
  • Eye Care
  • Nail care
  • Face Care

On the basis of distribution channel, the APAC Halal Cosmetics market can be segmented into:

  • Hypermarket/Supermarket
  • Company-owned Stores
  • Internet Retailing
  • Salons/Spas
  • Others

By Region, the APAC Halal Cosmetics market can be segmented into:

  • Southeast Asia
  • East Asia
  • South Asia
  • Oceania

A detailed analysis has been provided for every segment, in terms of market size analysis for APAC Halal Cosmetics.

Report Structure of APAC Halal Cosmetics Market

The report starts with the market overview and provides market definition and analysis about drivers, restraints, opportunities, supply chain analysis and key trends in the APAC Halal Cosmetics market. The next section includes global market analysis, analysis by product type, distribution channel type and regional/country level analysis. All the above sections evaluate the market on the basis of various factors affecting the market and cover present scenario and future prospects.

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecast in terms of CAGR, but also analyze the same on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand the predictability of the market and to identify the right opportunities for market players.

Another key feature of this APAC Halal Cosmetics market report is the analysis of all key segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as in identifying potential resources from a sales and delivery perspective in the APAC Halal Cosmetics.

Research Methodology of APAC Halal Cosmetics Market

The report titled “APAC Halal Cosmetics Market” focuses on providing information regarding the value of the market from a global perspective. The research on the said market was initiated thorough secondary research on the product, using both top-down and bottom-up approaches, right down to the country and segmental level. Halal cosmetics producers, production and consumption trends, regional trends in halal cosmetics market, regulations in halal cosmetics market, etc., were taken into consideration. In addition to the above secondary research, yearly revenue generated by various product types of APAC Halal Cosmetics was also estimated.

Furthermore, the yearly revenue generated by halal cosmetics companies from each product type was obtained from both primary and secondary sources and then benchmarked at regional level. Fluctuations in annual prices over the forecast period are based on the historic market trends and expected percentage change in the upcoming years on the basis of investment was done on the patent market and the related industry. Any decline or increase in price in the upcoming years has been kept linear for all the regions.

The APAC Halal Cosmetics market value, thus, deduced was once again cross verified and validated from the supply side. FMI’s proprietary regression analysis forecast model was adopted to generate the market estimation for the forecast years and took into account the effect of macroeconomic factors impacting the overall APAC Halal Cosmetics market and was further validated by the primary respondents belonging to different levels of the entire value chain of APAC Halal Cosmetics market, such as manufacturers and independent service providers.

Halal Cosmetics Market Participants

In the final section of the report, a competitive landscape has been included to provide report audiences with a dashboard view. Detailed profiles of manufacturers have also been included within the scope of the report to evaluate their long- and short-term strategies, key offerings and recent developments in the Halal cosmetics. Key players in the global Halal cosmetics market include INIKA, Marth Tilaar, Wipro Unza, Clara International, Brataco Group of Companies, Ivy Beauty Corporation Sdn Bhd and Paragon Technology and Innovation.

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