Indonesia and Malaysia: the forefront of halal beauty innovation

The Asia-Pacific (APAC) region accounts for the largest portion of this thriving market, with Malaysia and Indonesia leading the way. Although Malaysia is a relatively small country, with a population of 32.7 million people in 2021 (over 60% of whom are Muslim), it has a well-developed economy, and Malaysia’s halal beauty market is one of the largest in the ASEAN region. That’s one. On the other hand, Indonesia is the world’s largest Muslim-majority country with a population of over 275 million people, 87% of whom are Muslim. In both countries, the size of the halal beauty market has grown significantly in recent years.

Young brands dominate Indonesia’s halal beauty market

According to Sankoyo Antarixo, Chairman of Indonesian Cosmetic Association Percosmi:”Indonesia is the world’s largest halal consumer market. In 2020, consumer spending reached $184 billion, of which $4.19 billion was on cosmetics and toiletries (C&T).By comparison, Indonesia’s overall C&T market is worth approximately $6.34 billion, with halal-certified cosmetics expected to outpace the non-halal beauty market in the next five years.

In Indonesia, halal certification for cosmetics is still lagging behind that for food, but it has been steadily increasing in recent years. In 2017, only 64 cosmetics companies obtained Halal certification. This number increased to 129 companies in 2018, 162 companies in 2019, and 214 companies in 2020, including Indonesian and foreign companies.” added Indonesia President Director Muti Arintawati. Food, Drugs and Cosmetics Evaluation Institute Majelis Ulama Indonesia LPPOM MUI.

One of the reasons for this development is that Indonesia Halal Product LawThis applies to cosmetics, food, non-food and services and came into force in 2019. Under this set of regulations, all foreign beauty products distributed or retailed in Indonesia will be treated as non-halal unless they are certified in Indonesia. or by an accredited foreign certification body. Cosmetic brands are required to fully implement this law by 2026, but national and regional halal beauty brands have begun this process long ago.

Established Halal Brands in Indonesia like Pioneer WardaFounded in 1995, it has a strong presence across the ASEAN region and has been instrumental in promoting the domestic halal beauty market. When Wardah was first launched, there were very few Halal-certified brands, and consumer understanding of what Halal was was even weaker. However, over the past 20 years, The “hijab lifestyle” is growing significantly in Indonesia.. And today’s young halal consumers are no longer just looking for religious certification.

Prita Anindya Laksmita, Beauty Department Manager Kantar World Panel Division explanation:Looking at today’s growth factors, the market is not driven by the Halal logo per se. Consumers are now also looking for more sophisticated effects such as skin whitening and anti-aging, so modern halal beauty brands are enhancing the key ingredients of their products instead of focusing only on the halal seal.

And in fact, in recent years Trendy young domestic beauty brands are brightening up Indonesia’s halal cosmetics and toiletries market. Fifteen years ago, halal brands tended to look staid and a bit conservative, but a new generation of female-founded beauty brands are in a completely different realm, with exciting products and super-stylish packaging to create a digital brand. It surprises the native demographic. Many of these new launches are makeup brands and are actually boosting the overall color cosmetics market in Indonesia. Domestic makeup department estimated to grow at a CAGR of 5.7% from 2020 to 2025 [3]is driven by the certified halal makeup market.

Some of the biggest beauty brands include BLP beauty Launched in 2016 by renowned beauty blogger Lizzy Parra, it offers a comprehensive range of shades to suit the different skin tones of Indonesian women. The product is lightweight and comfortable to wear even in the country’s hot and humid climate. Lux Climb This is another beauty brand with a strong Gen Z vibe and stylish packaging. rosé all day A brand that proposes skin care and makeup launched in 2017.color cosmetic brand Escha Launched in 2016, it is both halal and vegan. gone crazy It also caters to Gen Z and Millennials.face care brand baseOn the other hand, provides personalized skin care. Users fill out an online Her survey and the brand selects suitable products from the range and ships them directly to the customer.

Halal beauty know-how from Malaysia

Malaysia is not far behind its neighbors as far as halal beauty is concerned. Despite Malaysia’s relatively small population, the country 4th largest economy in Southeast Asia. It also ranks among the top five in the international Muslim consumer’s Halal authority JAKIM is one of the largest certification bodies in the region, and over the past decade, the Malaysian government has implemented various initiatives to expand and promote the domestic halal manufacturing ecosystem, making Malaysia a leading country for halal OEM/ODM manufacturing. It is one of the

According to Alvin Im, Malaysian Cosmetics and Toiletries Industry GroupAccording to local trade organizations, Malaysia’s halal exports in 2020 reached US$7.25 billion, of which C&T products accounted for US$640 million (8.7%) worth of sales. Malaysia’s main export market for halal cosmetics is Singapore (by a wide margin), followed by Turkey, UAE, Philippines, and Japan.

Mr Lim said the 2020 performance was affected by the pandemic, as cosmetics export sales were growing strongly from US$520 million in 2016 to US$710 million in 2019. However, Lim expects Malaysia’s exports of halal beauty products to recover and expand further post-post. -Pandemic period. And the demand is definitely there!

Similar to Indonesia, Malaysia’s modern halal beauty market is driven by many people. New trendy makeup and skincare brands Those that have appeared on the market in the last five years. These labels are mainly Women-run business, confident domestic production We aimed squarely at the needs of young urban women.

Released in 2016, Thor Wreck is a great example of this new kind of beauty brand. Founders Dalia Nadira and Luqman Hakim wanted to create an affordable makeup brand that celebrated Malaysian culture and heritage, rather than giving a generic international or British brand feel. Ta. The products and shades in So.Lek’s makeup range are named in Malaysian rather than English, and the brand name is also based on the Malaysian word for makeup.

This was also released in 2016. Nita Cosmetica We have a similar brand ethos. Her founder Aznita Azman wanted her own makeup brand to express Malaysian culture and values ​​through its packaging and product names. Her brand offers accessible and affordable colors that suit a variety of skin tones.

duck cosmetics is the sister brand of hijab label dUCk, launched in 2014 by local fashion entrepreneur Valet Vivi Yusof. After expanding into bags, accessories, and other home and lifestyle products, Yusof introduced a Halal cosmetics range in 2017, becoming Malaysia’s first beauty brand. It will be sold at the ultra-luxury Pavilion Shopping Mall in Kuala Lumpur.

millennial beauty brand Ah, the most sought after cosmeticswas launched in 2018 by Malaysian actress Nora Denmark and produces makeup with functional skin care benefits. iris cosmeticswas founded in the same year by brothers Iman and Irisa and offers lip, eye and eyebrow color cosmetics in stylish packaging.

velvet vanity, whose founder was 24 years old when he launched the brand in 2016, sells a wide range of completely vegan and halal makeup.Other notable domestic makeup brands include Lip Color Label marcella & company, orchid cosmetics and Pretty Sushi. In 2017, his two founders of Pretty Suci launched Malaysia’s first Halal beauty online store.

Forward at full speed

The outlook for the halal beauty market in the APAC region is very bright. The region is expected to have 1.5 billion Muslims by 2050, according to Mr. Mullioni R. Hirwan, Halal Audit Services Advisor at LPPOM-MUI, and Mr. It is estimated as follows. Asia Pacific is expected to record the highest proportion of the double-digit halal cosmetics market growth, which is expected to reach USD 104 billion by 2027. And with so many exciting new regional beauty brands, the ASEAN Halal beauty market is more attractive than ever.

Interestingly, sales of halal beauty products are also growing among non-Muslims in the Asia-Pacific region, as domestic consumers increasingly turn to halal-certified cosmetics for safe, clean, and cruelty-free products. Masu. “Halal certification seals have become popular products.” admits Prita Anindya Laksmita of Kantar Worldpanel.

This development will further boost the halal beauty market as ingredient safety is a key consideration for many ASEAN consumers.

What is Halal Beauty?

Halal cosmetics manufactured in accordance with Islamic Sharia law contain ingredients that are haram (prohibited) in Islam, such as alcohol, genetically modified ingredients, ingredients derived from the human body, and ingredients derived from animals (such as pigs) that are prohibited by Sharia law. must not contain any ingredients. From animals slaughtered using non-halal methods. Cosmetics cannot be manufactured in facilities that also handle non-halal products (this also applies to storage, packaging, display, and shipping of products) or processed with non-halal machinery and equipment.

This may seem simple at first, but it gets more complicated when beauty and personal care come into play. Face creams often contain more than 20 ingredients, with active ingredients and compounds sourced from a variety of companies and regions. To certify a product as halal, it must be clear that the source of each cosmetic ingredient is free of non-halal ingredients. For example, cosmetic active ingredients cannot include placenta, albumin, or keratin components derived from humans or illegally slaughtered animals, but other typical ingredients such as enzymes, proteins, ferments, and even AHAs. Cultures, media, and additives used in the production of cosmetic ingredients should also contain similar ingredients. Items that are certified as Halal, meaning they do not contain non-Halal ingredients and are not manufactured in a non-Halal facility. Products such as color cosmetics, sunscreens, and body lotions also need to be water permeable so that they can be washed during wudu rituals, so it can also be difficult to claim that they are “waterproof” or “water resistant.” .

There is no global halal authority or certification body, and each Muslim (or Muslim-majority) country has its own halal regulations (and national certification bodies), so halal certification in specific regional markets Certification may not be recognized in other Muslim countries. However, certifiers in larger halal markets such as Malaysia and Indonesia typically recognize certain foreign halal certifiers, although they are required to formally register their products in the target country.

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