Halal magnificence is synonymous with high quality and transparency. Demand for halal cosmetics is rising globally and it can’t be classed as a “area of interest” space of the business. So how does that intersect with Ok-beauty? We chatted to Dr James Noh, senior lecturer and founding father of the Korea Institute of Halal Trade, concerning the change in perspective to halal magnificence and the way this impacts the Korean market.
The time period ‘halal’ is extensively often known as a spiritual dietary observe of the Muslims. What does it imply by halal cosmetics, and what are the important thing options of halal magnificence merchandise?
Normally, halal applies to meats and processed meals supposed for human consumption. Nevertheless, magnificence merchandise additionally matter as a result of human pores and skin can soak up some elements of beauty merchandise used on lips or eyes. From the early 2000s, we now have witnessed a quickly growing demand for magnificence merchandise whose elements are compliant with Islamic requirements and don’t trigger adversarial well being results in people. In 2008, Malaysia launched the halal cosmetics manufacturing requirements, and Malaysian and Indonesian corporations started to launch halal magnificence product in earnest by the 2010s.
After we set spiritual points apart, the bottom-line of halal cosmetics is that what elements are used. Usually, halal elements come from vegetation, aquatic organisms, minerals, compounds, and microorganisms that don’t current a possible dangerous impact to the human physique.
Specifically, a lot warning must be given to terrestrial animals. Any ingredient derived from animal blood or porcine animals is strictly forbidden. Using elements derived from bovine, ovine, caprine animals and poultry is allowed solely when the Islamic guidelines of slaughter have been noticed. Forbidden elements embrace drinkable alcohol, reminiscent of liquor. Below unavoidable circumstances, cosmetics producers might use denatured alcohol solely. The utmost restrict for residues of alcohol in halal meals is extraordinarily low, whereas – so long as it isn’t edible – halal beauty merchandise can include alcohol content material at an affordable stage.
Halal magnificence customers are additionally focused on vegan beauty merchandise as a result of they don’t include any animal-derived elements, however producers ought to pay additional consideration to a possible danger issue, for instance, a supply of alcohol content material or different components which will include non-halal components. Thus, the perfect answer to turn into a ‘halal (permissible)’ beauty product is to accumulate halal certification.
Muslim spending on cosmetics within the Center East is rising at a good clip, forecast to succeed in $95 billion by 2024 with growing pure, natural and vegan cosmetics certifications, based on the State of the International Islamic Economic system Report, a market evaluation report printed in Dubai. How do you discover the present halal magnificence market measurement and Muslim cosmetics client tendencies?
Up to now yr, the worldwide cosmetics market has been severely affected by the COVID-19 pandemic and halal beauty merchandise have been no exception. In accordance with the State of International Islamic Economic system Report 2020-2021, Muslim spend on cosmetics elevated by 3.4% in 2019 to $66 billion and is forecast to drop by 2.5% in 2020. The report additionally says that Muslim cosmetics spend will develop at a 5-year CAGR of two.9% to succeed in $76 billion by 2024.
These figures are decrease than these forecast within the earlier yr which estimated a 5-year CAGR of 6.9% and a complete income of $95 billion by 2024. Like different client product sectors, the halal cosmetics market has been considerably impacted by the COVID-19. Prolonged stay-at-home and social distancing practices have drastically affected gross sales of make-up and fragrance merchandise, whereas gross sales of facial sheet masks and at-home hair dyes quickly grew through the pandemic.
As mask-wearing continued, lipstick gross sales fell however conversely, eye make-up gross sales grew. Except for these, many corporations launched halal, cruelty-free, and vegan cosmetics to maintain up with rising moral consumerism among the many younger Muslim inhabitants.
What are essentially the most excellent options of Korean cosmetics for Muslim customers? And what makes them purchase Korean magnificence merchandise?
By and huge, Muslim client notion of Korean magnificence merchandise consists of the next three components:
- Koreans have crystal clear pores and skin (this notion is closely influenced by Korean Wave drama actors and actresses)
- Korean cosmetics are made with positive pure elements
- Korean magnificence corporations have revolutionary applied sciences.
The primary notion leads Muslim customers to redefine what they consider magnificence below the globally fashionable Ok-beauty. The second notion encourages native producers to import elements from Korea and integrating them into their high quality merchandise. The third notion offers customers confidence that Korean cosmetics are cost-effective and classy.
Because of this, Korean beauty exports to Islamic international locations has repeatedly elevated over the previous few years.
International magnificence corporations have big ambitions for the rising halal cosmetics market. What are the main corporations and international locations within the international market? Is there a Korean firm that has been efficiently growing its presence on this rising market?
Many international magnificence corporations have made appreciable achievements in Southeast Asia, working their very own native manufacturing amenities. For instance, Unilever expands Indonesia-made and halal-certified private care merchandise for Muslim customers not solely in Indonesia but in addition in neighbouring international locations.
One other international magnificence big, L’Oréal acquired halal certification for its Vietnam-manufactured Za merchandise for export to different Southeast Asian international locations. Moreover Shiseido, different Japanese magnificence corporations, reminiscent of Kao and Lion have efficiently launched halal model merchandise of their very own manufacturers in Indonesia and Malaysia.
Korean cosmetics producers are actively engaged in OEM market. Cosmax established its Indonesian affiliate for supporting native OEM prospects. Kolmar Korea operates a halal-certified cosmetics manufacturing line in Korea, supplying model merchandise to its Malaysian prospects. Cosmecca, Megacos, and different Korean producers are totally prepared for making their headway into abroad markets with acceptable halal certifications.
Now, ‘halal’ doesn’t merely stand for ‘Muslim’, moderately it’s a image of high quality assurance. What are the important necessities for halal-certified cosmetics?
Principally, halal-certified cosmetics require using permitted elements and a manufacturing system stopping cross-contamination.
For the ingredient aspect, neither important elements nor components ought to include non-halal factor. Solvents used for extracting and dissolving course of shouldn’t be originated from animals. Furthermore, filters for water purification and progress media for microorganisms should be animal-free.
For the manufacturing system aspect, a Good Manufacturing Observe (GMP) should be in place as a result of halal certification requires not solely halal components in elements but in addition hygienic and protected manufacturing programs. On this regard, Malaysia and Indonesia launched the halal assurance system, defining important necessities for halal manufacturing programs.
Korean corporations are intensifying their efforts to discover the halal cosmetics market, the so-called ‘blue ocean’ of Ok-beauty. What are the most important challenges they face when getting into into new markets and what are the important thing circumstances that permit Korean cosmetics corporations to faucet into rising demand amongst 1.8 billion Muslim customers?
The perfect strategy is to arrange and function one other manufacturing facility devoted and unique to halal beauty merchandise in order that they are often handled individually from non-halal merchandise. Alternatively, corporations might design and implement a collection of systematic procedures to forestall a danger of cross-contamination at their manufacturing amenities.
Nevertheless, both manner, cosmetics producers must bear further prices and bills. Though this additional burden might discourage corporations from buying important halal certifications for his or her export merchandise, happily sufficient, just lately, giant Korean OEMs and ODMs willingly started to put money into new vegetation devoted to halal magnificence merchandise, and we anticipate that the halal-certified cosmetics merchandise will persistently improve for years to return.
One factor that I’d like so as to add for these Korean magnificence corporations that cling to ‘Made in Korea’ is that they should construct a localized provide chain as many Japanese corporations do. Merchandise that keep a excessive stage of name consciousness however undergo from intense competitors within the Korean market, or have already reached the maturity stage of their product life cycle, would be capable to discover a breakthrough in Indonesia or Malaysia, if they’re regionally manufactured and marketed with acceptable halal certifications.
With this technique, Korean cosmetics corporations can’t solely meet growing native client demand but in addition arrange an outpost to advance to the worldwide halal magnificence market, masking South Asia, Central Asia, Center East and Africa.
Wish to hear extra? Dr James Noh shall be working a session at in-cosmetics Korea 2021 known as “The future of Halal Beauty and the response of K-Beauty” so test it out!