SGIE 2024/25 Highlights Halal Cosmetics Rise Led by Asian Brands

The global halal cosmetics industry is experiencing unprecedented growth, with Asian brands emerging as clear market leaders according to the newly released State of the Global Islamic Economy (SGIE) 2024/25 report. Valued at $93.5 billion in 2024, the sector has grown nearly 30% since 2022, far outpacing conventional beauty markets.

Asia’s Dominance in Halal Beauty Innovation

The report highlights how Asian companies have successfully transformed halal cosmetics from a religious niche into a mainstream beauty movement. Indonesia, Malaysia, and South Korea have become the industry’s innovation powerhouses, collectively accounting for over 60% of new halal beauty brands launched this year.

Indonesian brand Wardah exemplifies this success, having expanded to 28 international markets while pioneering halal-certified anti-aging biotechnology. Malaysia’s position as both global halal standard-setter and product innovator gives its brands unique credibility in Western markets. Perhaps most surprisingly, South Korea’s K-beauty giants have embraced halal certification, with 23% of their exports now meeting Islamic requirements.

Why Consumers Are Embracing Halal Cosmetics

The appeal of halal beauty now extends far beyond religious compliance. Modern consumers – both Muslim and non-Muslim – are drawn to these products for their strict ingredient purity standards, absence of harmful chemicals, and cruelty-free production methods. The report found that 30% of halal beauty buyers now come from non-Muslim backgrounds, particularly in North America and Europe.

This shift reflects broader clean beauty trends, with consumers increasingly prioritizing products that align with their ethical values. Halal certification has become a mark of quality assurance, verifying that products contain no alcohol, pork derivatives, or questionable ingredients.

Key Market Trends Shaping the Industry

Several important trends emerged from the SGIE findings:

• Explosive growth in men’s grooming: The male segment is growing at 25% annually

• E-commerce dominance: 42% of halal beauty sales now occur online

• Premium positioning: Halal products command 15-20% price premiums

• Social media influence: #HalalBeauty content receives 18 million monthly engagements

• Investment surge: Venture capital in halal beauty startups doubled since 2022

Challenges and Opportunities Ahead

Despite the sector’s remarkable growth, significant challenges remain. The lack of universal halal standards creates confusion, with 17 different certification bodies operating globally. Many consumers in non-Muslim markets still misunderstand halal cosmetics as being exclusively for religious use or less effective than conventional products.

However, these challenges present opportunities for brands that can educate consumers and streamline certification processes. The report predicts particularly strong growth in halal beauty tech, sustainable packaging solutions, and products targeting Gen Z consumers who prioritize ethical consumption.

Future Outlook: A $140 Billion Market by 2028

With the sector projected to reach $140 billion by 2028, halal cosmetics are clearly becoming a permanent fixture in the global beauty landscape. Asian brands are well-positioned to maintain their leadership through continued innovation in biotechnology, digital marketing strategies, and sustainable production methods.

As consumer demand for clean, ethical beauty products continues to grow worldwide, halal cosmetics are poised to transition from a specialized niche to a mainstream standard. The SGIE report makes clear that this transformation will be led by Asian companies that have successfully blended cultural authenticity with cutting-edge cosmetic science.