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“Halal Cosmetics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2015 – 2020”
After food and finance, cosmetics has emerged as the new market for Halal products, as consumers focus on fulfilling their religious obligations. In Asia Pacific, this trend is more pronounced with high consumer demand in Southeast Asia and South Asia.

Halal cosmetics market in Asia Pacific will amplify at a compound annual growth rate (CAGR) of 9.9% during the period 2015-2020, according to “Halal Cosmetics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2015-2020”, a new research report by Future Market Insights (FMI). Increasing awareness among consumers about their religious obligations and easy availability of a wide range of Halal cosmetics products is driving the market in Asia Pacific. 

Halal cosmetics are gaining traction in Asia Pacific as consumer awareness about the transdermal nature of conventional cosmetics has increased. FMI’s research revealed that due to concerns regarding transdermal nature of cosmetics, 57.6% of Muslims in Indonesia admitted to choosing Halal-certified cosmetic and personal care products over conventional cosmetics. 

Rise in disposable income and general awareness about personal hygiene has provided an impetus to the Halal cosmetics market in Asia Pacific. Halal cosmetics manufacturers are integrating organic and natural concepts in their products in a bid to appeal to a wider consumer base. 

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Southeast Asia & South Asia Most Lucrative Regions for Halal Cosmetics Market 

According to Future Market Insights, Southeast Asia and South Asia are the most lucrative regions in Asia Pacific for Halal cosmetics. The former accounted for over 60% share of the overall Halal cosmetics market in 2014 and FMI estimates it to expand at a CAGR of 10.2% through 2020. 

Among the various halal cosmetic products available in Southeast Asia, the demand for skin care and colour cosmetics is the most robust. According to FMI, these two segments accounted for nearly 70% of the total Halal cosmetics market in Southeast Asia in 2014. Emergence of Halal-certified companies and high demand for anti-ageing products is driving the Southeast Asia Halal cosmetics market. 

The Halal cosmetics market in South Asia was worth US$ 342.9 Mn in 2014; FMI estimates it to expand at a CAGR of 9.9% through 2020 and reach a valuation of US$ 599.6 Mn by 2020. Skin care and colour cosmetics are the dominant Halal cosmetic products in South Asia as well, and collectively they accounted for approximately 65% market share in 2014. FMI forecasts that these two segments will continue to be the most dominant through 2020 as well. 

According to FMI, demand for Halal colour cosmetics is robust in the entire Asia Pacific region. Colour cosmetics accounted for a share of 37.4% in 2014 and FMI estimates this segment to amplify at a CAGR of 10.3% through 2020. 

Skin care was the second-most dominant segment in Asia Pacific Halal cosmetics market in 2014. It had a 30% share in the market in 2014, and FMI estimates it to expand at a CAGR of 10% through 2020. 

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Ease of access and wide range of products is a key focus area for manufacturers and retailers. FMI’s analysis on the distribution channel revealed that hypermarket/supermarket is the most dominant distribution channel, with a 47.2% market share in 2014. FMI forecasts this to increase to 49.3% in 2020, owing to declined consumer interest in company-owned stores. Internet retailing is anticipated to gain traction in Asia Pacific owing to increasing smartphone penetration and competitive pricing by sellers. 

FMI’s analysis on ingredients used to manufacture Halal cosmetics revealed that manufacturers rely on plant- and animal- based derivatives permissible under Shariah to gain Halal-certification. Some of the widely used ingredients in Halal cosmetics are cetyl- and stearyl- alcohol, dimethicone and methicone, aloe vera, and titanium dioxide. 

Key companies profiled in FMI’s report include INIKA, Martha Tilaar, Wipro Unza, Clara International, Brataco group of companies, Ivy Beauty Corporation Sdn Bhd, and Paragon Technology and Innovation.

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