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Persistence Market Research says the global halal cosmetics market — skincare, haircare, makeup, fragrances, and personal care — will likely over double by 2032, from $53.7 billion to $120.2 billion. Another forecaster predicted the market will rise to US$171.7 billion by 2033.
Nearly half the world's Muslim population (about 835 million) live in Indonesia, Pakistan, India, and Bangladesh.
But another 400 million live in 16 Middle Eastern nations (including 1.5 million in Israel), making the Middle East the world’s second largest market for halal goods.
Egypt, Turkey, and Iran each are home to over 80 million Muslims. Iraq, Saudi Arabia, and Yemen and smaller nations like Syria, Jordan, the United Arab Emirates, and the other emirates also have growing halal cosmetics markets, making them targets for high-profile firms.
Indonesia’s cosmetics industry in 2024 was valued at US$7.4 billion (one-seventh of the world market) and growing. That growth rate could skyrocket in years to come, in part due to President Prabowo Subianto’s emphasis on growing his nation’s economy.
Paragon Technology and Innovation, Indonesia’s largest cosmetics company with 25% of the domestic market, is a family-run business that began in a garage 40 years ago.
Just last year Paragon customers bought hundreds of millions of facial cleansers, lip creams, sunscreen, and other products from its 14 beauty brands, including its flagship Wardah line, which in 2022 became the first Indonesian halal cosmetics brand to showcase at London Fashion Week.
Paragon, which operates 43 distribution centers just in Indonesia, opened a new headquarters in February, and its annual revenues are about 400 times larger than they were in 2001.
Its first huge growth spurt began as a Hijrah movement kicked off in Indonesia between 2008 and 2010 that led more Indonesian women to conform their lives to Islamic values — including halal cosmetics.
That movement is now global.
The rapid growth in halal cosmetics sales is being driven by rising ethical consumerism, growing Muslim populations, and increasing awareness of halal certification.
Muslim consumers seek products free from harmful or non-permissible ingredients that align with religious and health-conscious values.
According to Halal Times, the appeal of halal-certified cosmetics even extends to non-Muslim individuals seeking ethical and clean beauty alternatives.
The market boom has even spurred Western cosmetics companies to create new products that can win halal certification.
To win halal certification, a product's constituents cannot be animal-derived or tested on animals and cannot involve alcohol and or any ingredient that violates shariah law.
The product must also follow Islamic rules such as ethical sourcing and fair labor practices during production.
Halal inspectors verify whether products, including imported Chinese-made cosmetics, meet strict standards.
To grow their businesses, halal cosmetics firms are using innovative, consumer-friendly formulations, packaging materials, and marketing techniques.
Not surprisingly, younger Muslim consumers, especially millennials and Gen Z, are driving the growth of halal cosmetics through influencer endorsements, trendy formulations, and ethical values.
Halal cosmetics are widely promoted on social media platforms (including TikTok) and by beauty influencers. Malaysian influencer and entrepreneur Ameera Khan has her own luxury makeup line.
Others include Somali supermodel Iman Abdulmajid and former Nisa Foundation executive director Yasmine Youssef.
At the Harvard Asia Business Conference in March, Paragon's Dr. Sari Chairunnisa (whose mother founded the firm) outlined the company’s multi-phased international business expansion strategy.
Paragon is setting up regional offices to build a strong global presence and partner with local manufacturers to ensure product availability without compromising their halal purity.
Sari's brother, Salman Subakat, currently the CEO of Paragon Corp., says a major reason to "go global” was the family-owned business' desire to bring its quality brand and principles to the world.
Indonesia's people want their best brands to become ambassadors for their nation — and believe the world needs something they represent to inspire lives and entire societies.
Indonesia, Subakat added, has had a slogan, "bring the world to Indonesia," but "we want to bring Paragon — and a bit of Indonesia — to the world."
As part of Paragon's major expansion into Mideastern markets, the company is in discussions with Saudi Arabia to partner in bringing a Saudi-based Paragon-like company to its people.
"We have the brand and the talent, and they want to collaborate with us," said Subakat.
Egypt’s halal cosmetics market is projected to reach $14.67 billion by 2030, fueled by rising disposable incomes, increased consumer awareness and demand for ethical, halal-certified products, and favorable government policies and initiatives.
Subakat says that people in every nation need their own champions — local companies that support public education and other social goods and create a positive attitude within their communities.
Nine out of top 10 companies that were exceeding the goals of Net Zero — that give back more than they take — are, like Paragon, family-owned businesses.
Subakat boasts that that Paragon's products, which people use every day, contribute to people’s confidence. Those who are more confident, he says, are better equipped to do good things for other people.
"As a family-owned business," he says, "it is easier to stick to our mission even as we continue to acquire new technology and to keep our products current (changing them out every two years or so) — and to hire and promote good leaders in our workforce."
Duggan Flanakin is a senior policy analyst at the Committee For A Constructive Tomorrow who writes on a wide variety of public policy issues. Read Duggan Flanakin's reports — More Here.