Demand for Halal-certified products boosts UAE cosmetics market

By Andrew MCDOUGALL contact

- Last updated on GMT

Demand for Halal-certified products boosts UAE cosmetics market
UAE has emerged as a very attractive market for cosmetics manufacturers as the demand for halal-certified products increases, in a segment full of affluent consumers.

According to Kuick Research’s latest ‘UAE Halal Cosmetics Market Opportunity Analysis’ report, the increasing preference for Halal cosmetics products has led to change in the business strategy of the local as well as international companies present in the market.

Companies are now changing their product assortment in order to accommodate the growing demand for Halal cosmetics products due to transition in the customer preference for Halal products.

Certification and acceptance

Halal certification and acceptance of Halal products had been widespread in the hospitality, food, packaging, banking and finance industries in the Middle East and specifically in the Saudi Arabia and UAE.

However, the demand for Halal cosmetics and beauty products was not as strong; although this is due to change as increasing consumer awareness and a willingness to pay for quality products is transforming the cosmetics and personal care industry.

An increasing preference for natural and organic products in the Middle East saw the sector grow by 20 per cent last year, according to research firm Organic Monitor.

A recent report by the University of Malaysia Perlis, also revealed that as cosmetic companies begin to tap into this significant market, the segment, although noted as doing particularly well in the Middle East, is also growing on a global basis and is estimated as worth between €5bn-€14bn.

The demand is said to be coming from increased consumer knowledge of the ingredients used in halal formulations and the way they are produced, while organic ingredient concepts are thought to be along the same principles.

Opportunity

“Consumers are now verifying the contents of the cosmetics that are most used by them for animal based ingredients that may not be Halal,”​ says the Kuick report.

“However, there exist constraints on the supply side. There is a dearth of Halal-certified cosmetics brands in the UAE market. The existing players are small and this has led to a fragmented nature of the market. None of the multinational cosmetics companies present in the UAE offer Halal friendly products. This continues to remain a problem due to the absence of a local certification body.”

As such, UAE has emerged as an attractive market for cosmetic companies to introduce their new products as it is one of the largest beauty markets in the world and is endorsed by affluent clientele. 

Related topics: Market Trends

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