The Halal Cosmetics Market: Size, Growth, Rules and the Opportunity for Suppliers

Muslim consumers spent $92 billion on cosmetics in 2024, up 5.8 percent from a year earlier, and that spending is forecast to reach $124 billion by 2029, according to DinarStandard’s State of the Global Islamic Economy Report 2025/26. India, Türkiye and Indonesia are the largest markets. Indonesia’s halal mandate for cosmetics, in force from Oct. 18, 2026, is the biggest regulatory change for the industry.

The figures come from DinarStandard’s annual report, the most widely cited source on the Islamic economy, as summarized by its publishing partner Salaam Gateway. They measure what Muslims spend on cosmetics, not sales of certified halal products alone, which explains why commercial market-research firms publish much lower, and widely varying, estimates for the “halal cosmetics market”: one vendor’s overview put the 2026 figure at about $54 billion while its own data table gave $39 billion, and another estimated $59 billion. Readers should treat such single-vendor figures with caution.

The market at a glance

Source: DinarStandard, State of the Global Islamic Economy Report 2025/26.

Why demand is growing

Three forces drive growth: a young and growing Muslim population, wider awareness of ingredients such as animal-derived collagen, gelatin and alcohol, and regulation that turns halal from a marketing claim into a legal requirement. Many consumers also see halal certification as overlapping with the “clean beauty” and vegan trends, although the standards differ; our explainer asks whether vegan cosmetics are halal.

Regulation: Indonesia and Malaysia

Indonesia requires cosmetics sold in the country to be halal certified, or labeled as non-halal, from Oct. 18, 2026, under Government Regulation 42 of 2024. The same phase covers food raw materials, additives and processing aids, which pulls ingredient suppliers into the system. Our guide to Indonesia’s mandatory halal certification sets out the rules for exporters.

Malaysia certifies cosmetics against its national standard MS 2634:2019, “Halal cosmetics – General requirements,” administered through JAKIM’s certification system. Certification requires that ingredients, processing aids and packaging contact materials come from permissible sources and that production avoids contamination.

The largest brand: Paragon and Wardah

Indonesia’s Paragon Technology and Innovation, maker of the Wardah brand, shows how large a halal-positioned beauty company can grow. Founded by Nurhayati Subakat in 1985, Paragon owns 14 brands, including Wardah, Make Over and the men’s brand Kahf, employs about 14,000 people and holds about a quarter of Indonesia’s beauty market, worth about $7.4 billion in 2024, according to a profile in Monocle. Sari Chairunnisa, Paragon’s deputy chief executive and head of research and development, called the 2026 mandate “business as usual” for the company, Monocle reported.

The opportunity for suppliers

For business-to-business suppliers, the mandate creates demand further up the chain. Brands seeking certification need halal-certified emulsifiers, glycerin, collagen, fragrances and colorants, and they must document each one. Ingredient makers that hold certificates recognized in Indonesia and Malaysia can shorten their customers’ certification process.

• Obtain certificates from bodies recognized by BPJPH and JAKIM.
• Prepare full ingredient source documentation, including for processing aids.
• Offer plant-based or synthetic alternatives to animal-derived inputs.
• Prepare for non-halal labeling rules for products that cannot be certified.

For consumers

Consumers should look for a recognized certifier’s mark rather than a generic “halal” claim. Our guide on identifying genuine halal certification on cosmetics explains what to check.