With a market size of AED 205.5 billion ($56 billion), halal cosmetics is no longer seen as a trend but a key component of people’s lifestyles; hence the need to protect the public has become a primary agenda of top consumer countries, according to the head of the International halal Accreditation Forum (IHAF) General Secretariat Office based in the UAE.
H.E. Mohammed Saleh Badri, Secretary General of the International halal Accreditation Forum, said: “Consumer awareness and preference for halal cosmetics is stronger now more than ever. People have become more diligent in scrutinising the ingredients of the products they use. This is highly evident in the latest statistics generated in a study of the Global Islamic Economy.”
The most recent State of Global Islamic Economy (SGIE) Report estimated Muslim expenditure on halal cosmetics at AED205.5 billion ($56 billion) in a year, accounting for a 7 per cent share in the global cosmetics market.
“Along with the clamor for halal products, comes the pressing need to establish a universal system of identifying which products are genuinely halal. Therefore it is not surprising that top consumer markets are seeing the value of taking part in IHAF’s standardisation initiatives,” Badri said.
India, the primary Muslim consumer cosmetics expenditure market at AED17.2 billion ($4.7 billion), is now a member of IHAF. Russia, which places second at AED12.8 billion ($3.5 billion), is communicating with IHAF and is expected to join soon.
Indonesia, Turkey, and Malaysia are included in the top five markets with the highest Muslim consumer cosmetics expenditure, having a total market size of AED33.8 billion ($9.2 billion).
IHAF, an international organisation based in the UAE, has become fully functional following its General Assembly meeting last year and has 20 members on board, representing 23 countries from several continents.
“The core of IHAF’s vision is to arm consumers with relevant information about various range of products in the market. With a slew of extensive awareness campaigns in the pipeline, IHAF aims to make it easy for buyers to identify certified, high-quality halal products,” Badri added.
“Putting internationally recognised standards in place ultimately boosts the public’s confidence in the halal market, consequently driving up investment in the industry,” he also said.
Current market updates have shown brewing investment interest in the halal cosmetics sector.
“halal nail polish is a product many companies are seeking to develop. The Saudi Arabia-based BCI Group launched its halal certified H nail polish line in 2014, as did Greece-based Safe ‘N’ Beautiful. The UK’s Nails Inc. launched a halal friendly line in 2015,” according to the 2016-2017 SGIE Report.
In responding to the growing demand, cosmetics manufacturers are behooved to ensure that all their products and processes are Sharia-compliant.
Looking into industry developments through the years, Badri has stressed that no international standardisation entity has tackled the Sharia compliance of the cosmetics sector until IHAF came to the fore.
“This is one of the significant issues IHAF is seeking to address in its three-year strategic goals. Cosmetics, along with food and pharmaceuticals, is a major sector for which unified standards and product verification schemes are being developed,” Badri said.
“The system of halal standards for cosmetics would be similar to that for halal food. Restrictions for its production may be lighter as these are not being eaten, but in general, manufacturers and certification bodies are expected to treat cosmetics the same way they treat food,” Badri added.
Aside from the benefits they would reap from stronger consumer confidence, the halal cosmetics manufacturing industry will also be able to minimise production and certification costs through IHAF’s global standardisation scheme.
“Standardisation will provide manufacturers with a clear guideline on how to produce their halal goods in a manner that will be accepted everywhere in the world. Without this system, manufacturing particular products for specific markets becomes very expensive. Unified standards certainly pave the way for efficient global trade,” Badri concluded.