According to a new report authored by Dubai authorities and Thomson Reuters, entitled The Global Islamic Economy, the total spend on cosmetics by the world’s Islamic population in 2012 was an estimated $26bn, which represents just 5.7% of the global spend.
Drilling down further, the authors also point out that the predominantly Muslim countries forming a part of the Organization of Islamic Cooperation (OIC) accounted for only $2.7bn of the total global exports of cosmetics in 2012, a figure that represents just 2.6% of the total global exports for the category.
Underlining a shortfall, the authors estimate that the import market for cosmetics into OIC member states stood at approximately 10% of the global total for cosmetics imports, with a value of just under $11bn.
Halal cosmetics - awareness is growing, but still in its infancy
Although halal-consciousness is growing, the report authors say it remains in its infancy, with plenty of room for further education and development in what determines a halal cosmetic product.
“The majority of Muslims are not aware or are not concerned about halal certification in pharmaceuticals and cosmetics, assuming that the government is managing it,” the report authors write.
“However, given the latest demand and positive trend, opportunities exist in ingredients manufacturing, global branded concepts of organic and halal cosmetics, and opportunities for many OIC based pharmaceutical conglomerates to take a leadership role in developing this space.”
Multinationals are in on the act, but Halal businesses are on the radar
The report highlights that all the multinational cosmetic companies are targeting the global Muslim population, but highlights that a number of Halal business are also making in-roads, including Farmasi, Hayat Kimya Sanayi and Evyap Sabun Yag Gliserin in Turkey, together with Wardah and Mandom in Indonesia and Lam Soon in Malaysia.
There are also a number of cosmetic brands providing specialty cosmetic products, including the Sunsilk Clean & Fresh brand, designed for women who wear veils, and Inglot brand of impermeable nail polish.
Likewise, businesses that specifically target Halal certified cosmetic and personal care products including Malaysia-based Ivy, Saaf Cosmetics in the UK, One Pure in the UAE and Inika, based in Australia.
While the shortfall in exports compared to imports in OIC member states is very apparent, it is also interesting to note that, despite having huge Muslim populations in India, The Philippines, Malaysia and Indonesia, there are so few companies specifically targeting the Asia Pacific market.