The Halal cosmetics market in the Asia-Pacific (APAC) region will witness a 9.9% compound annual growth rate (CAGR) during the current forecast period 2015-2020, the report predicts.
“As more consumers in Asia Pacific gain awareness about the ingredients used in conventional cosmetics and their transdermal nature, demand for Halal cosmetic will increase," the report stated.
As a result, “this will prompt manufacturers to diversify their product offerings and introduce halal-certified products in the market”, it went on to say.
Increasing market share
Halal fragrances are one area within the ethical segment that has, to date, seen less exposure as consumers favoured other Halal cosmetics including colour cosmetics, skin care and hair care.
However, the report predicts that Halal fragrances will see the largest CAGR in the forecast period.
In the APAC market, the report found that the skin care market has been the second most lucrative segment, accounting for over 30% market share in 2014. Market intelligence and consulting firm, FMI, estimates that by 2020, this will have risen at a 10% CAGR.
Colour cosmetics sector
Historically, colour cosmetics has been the dominating sector, accounting for 37.4% share of the Halal cosmetics market in 2014. This segment is expected to grow by a 10.3% CAGR during the 2015-2020 forecast period.
Colour cosmetics, the leading segment is further sub-segmented into lip care, eye care, nail care and face care. In 2014, lip care and face care collectively accounted for over 65% of the market share, with nail care and face care also popular with APAC consumers.
Lip care is tipped to be the focus for colour cosmetic product development as brands are set to rise at a 10.5% CAGR through 2020. At the end of the forecast period, this particular sub-sector of colour cosmetics is expected to reach a valuation of $400.6 mn (€363 mn).
The demand for raw materials that are permissible for use according to Islamic law is high throughout APAC.
Halal cosmetics companies need to comply with the regulations set by respective governments in APAC to gain halal-certification.
The natural and organics sectors are crucial to the development and evolution of Halal cosmetics as manufacturers use plant derivatives and other raw materials for Halal cosmetic production.
Southeast Asia dominates
FMI’s analysis found that Southeast Asia was the most lucrative market for Halal cosmetics in APAC. Valued at $863.7 mn (€815 mn) in 2014, FMI anticipates its will rise 10.2% CAGR to $1,535.3 mn (€1449.1 mn) by 2020.
The South Asian Halal cosmetics market was calculated to be worth $342.9 mn (€323.7 mn) in 2014. By 2020, this is expected to have reached $599.6 mn (€566.0 mn) at a CAGR of 9.9%.
Other key areas within the APAC region, including East Asia and Oceania, are expected to see healthy single-digit CAGR in the Halal cosmetics market in the 2015-2020 forecast period also.
There is a host of leading companies focusing on the Halal cosmetics market including INIKA, Martha Tilaar, Wipro Unza, Clara International, Brataco group of companies, Ivy Beauty Corporation Sdn Bhd, and Paragon Technology and Innovation.