The Beautyworld Middle East Networking Event is a unique opportunity outside of the annual exhibition to meet industry leaders and forge valuable connections from across the beauty and personal care industry. The inaugural networking event which took place in early October this year explored the latest trends in halal cosmetics and what the future holds for this category in the region.
At the networking event, Dr Iyad Hijjawi, Euromonitor International and Mr. Karan Chechi, from TechSci Research shared valuable insights and market data on the halal cosmetics market. While Hijjawi looked at growth in the global halal cosmetics market, Mr. Chechi zoned in on the rise of halal cosmetics in Saudi Arabia.
Halal is an Arabic word meaning permissible. All halal certified products must meet specific criteria such as being free from alcohol and certain animal-derived products.
A global perspective
According to estimates from Dr. Iyad Hijjawi, the global halal cosmetics market was worth USD 27 billion (bn) in 2017 and this is expected to accelerate rapidly and nearly double to be worth USD 55 bn by 2022.
Hijjawi attributes this rapid acceleration and development in the global halal cosmetics industry to a rising Muslim population, which in 2017 stands at 2.2 bn, representing 29 per cent of total world population. As the Muslim population has been increasing, so too has demand for halal products in general and this has carried across to the cosmetics industry, where Muslim consumers are now also ensuring the cosmetics products they use are compliant with their religious beliefs.
Halal cosmetics in Saudi Arabia
Mirroring global market dynamics, according to data from TechSci Research, the market for halal cosmetics in Saudi Arabia is also expected to double by 2022, to reach a market size of USD 4,945.29 million (mn). The research points to Saudi Arabia holding a 16 per cent share of the wider region’s halal cosmetics market.
According to Mr. Chechi, TechSci Research, “The halal cosmetics market in Saudi Arabia is definitely a fast growing one. In fact, our estimates point to a CAGR of 15.21 per cent for KSA’s halal cosmetics market between now and 2022. It is likely that halal fragrances will be the biggest growth drivers here with halal skincare and halal colour cosmetics also strong contributing areas.”
In general, the modern Arabian woman has brought about a shift in socio-cultural norms and it is becoming more acceptable for women to wear make-up in Saudi Arabia on a daily basis.
Furthermore, Arab women are increasingly entering the workforce providing them with a personal disposable income to spend on beauty and personal care products. This has led to overall growth across the beauty and personal care market in Saudi Arabia which can also be linked to growth in the halal cosmetics sector, as women look to adopt more beauty and personal care products in their daily regime without having to compromise on religious values.
Not only are Arab women more inclined to invest in beauty and personal care products, they are also very much aware that many cosmetics products are not necessarily manufactured to meet halal requirements. This has led to increased demand amongst Arab women for cosmetics products that are effective but also conform to religious values i.e. an increase in demand for halal cosmetics.
Mr. Chechi explained, “Based on a recent survey we conducted, approx. 42% of KSA consumers are already using halal cosmetics products. The majority of these consumers base their usage on the fact that halal cosmetics conform with their religious values and with more options now available, they will increasingly turn to halal versions of a product when it is available to them, with 22% stating they would only buy halal cosmetics products.”
New distribution channels have helped increase the availability of halal cosmetics and innovative marketing strategies that target Arab women are taking effect. As these trends develop, it is sure that the halal cosmetics market in Saudi Arabia will continue to gain traction.