Retail in Asia

In Telligence

Three key trends driving halal beauty’s growth in Southeast Asia

With increasing consumer awareness and demand, coupled with tightening regulations from authorities, a growing number of halal beauty brands and products are emerging in the market. Southeast Asia, being home to over 240 million Muslim consumers, will become the predominant market for the halal beauty industry.

SEE ALSO: APAC health and beauty industry to expand at 4.7 percent CAGR to 2027

What is halal beauty?

Halal beauty consists of beauty products that are composed, produced and made from materials permitted under Islamic law. The main criterion for beauty products to be certified as halal is that the products must be made using ingredients and processes that do not involve animal-derived substances, alcohol, blood, or harmful ingredients. It is mandatory for the ingredients to be alcohol-free (although some standards allow up to 0.5 percent) and if they are derived from animals, they must be certified halal. For some water-resistant cosmetics like nail polish, the ingredient must be fully permeable by water to reach the nail bed or skin, making it possible to perform ablution. It is also important that hygiene and cleanliness are always maintained during the manufacturing, processing, preparation, transport and storage of halal cosmetics.

The majority of the population in Southeast Asian countries like Indonesia and Malaysia are Muslim, driving the growth of halal beauty products in the region. With the overall beauty and personal care industry expected to grow by around 10 percent in Indonesia and 15 percent in Malaysia in 2023, these two countries will see growth in the proportion of halal beauty products in the market.

The percentage of halal beauty products in Indonesia grew from 2.7 percent to 7.1 percent over 2019-2022.

Rising awareness among consumers leading to growth in halal beauty products

An increasing number of consumers trust products that have undergone a halal certification process and perceive such products to be more ethical. Due to this increased demand, more businesses are seeking to obtain halal certification to cater to a wider audience. Such products are not only perceived to be more ethical but also cater to individuals with religious beliefs and dietary restrictions. The availability of halal beauty products offers consumers a wider variety of options from which to choose.

Brands have started setting up halal factories to respond to growing consumer demand for halal beauty and personal care products. Singaporean oral care brand, Pearlie White, obtained its halal certification in June 2022. It has now established a halal-certified oral care manufacturing facility in Singapore and offers approximately 20 halal-certified oral care products to its customers.

Tightening regulations on beauty products push brands to obtain halal certification

To be certified as halal, full product ingredients and manufacturing facilities must be inspected to make sure they are not contaminated with impurities. In countries with large Muslim populations, there are authorities responsible for granting halal certification to beauty products: Islamic Religious Council of Singapore (MUIS); Department of Islamic Development Malaysia (JAKIM); and Indonesia Council of Ulama (MUI). (LPPOM-MUI)

As the market in Southeast Asia with the largest Muslim population, Indonesia passed the “halal product assurance” regulation that will be obligatory for all beauty products by October 2026. It is expected that many more halal beauty brands will flock to the market in the coming few years. This requirement will push both local and international brands to obtain their halal certification in the next three years.