Faith meets formula: Halal beauty rises across Asia

Southeast Asia is emerging as a test bed for global beauty’s next frontier: halal-certified cosmetics. Malaysia, Indonesia, and Singapore now rank among the world’s top four halal cosmetics markets, according to DinarStandard’s State of the Global Islamic Economy Report 2024/2025. Muslim customers spent $87 billion on cosmetics in 2023, according to the report, with expansion happening in Muslim and Non-Muslim countries. East Asian brands are also tapping into this market, gaining popularity across Southeast Asia — particularly in Malaysia and Indonesia, home to the region’s largest Muslim populations. The rise of clean halal beauty Clean beauty and halal beauty are increasingly converging in Southeast Asia. According to a 2024 report by Milieu Insights, a global market research and data analytics company, seven in 10 Southeast Asians believe clean beauty products are safe and superior to regular beauty products, while 66% prioritize natural ingredients when making purchasing decisions. Indonesian brand Wardah exemplifies this shift. The company has expanded to 28 international markets while pioneering halal-certified anti-aging biotechnology. Yet, affordability is becoming as decisive as certification. Sancoyo Antarikso, chairman of the Indonesian Cosmetics Companies Association (Perkosmi), notes that while halal cosmetics have long been the preferred choice in the world’s most populous Muslim country, price is now the primary factor for many consumers in larger, less conservative cities. “Setting the right price is now critical, especially as consumers feel the pinch from rising costs elsewhere,” Antarikso says. “By launching what the industry calls ‘affordable premium’ products — which combine accessibility with high-perceived value — cosmetics brands can attract a broader base of buyers, particularly from lower- to middle-income segments, while preserving their high-end appeal.” ‘Wudhu’-friendly makeup builds loyal following in Malaysia In Malaysia, So.Lek Cosmetics has built a loyal following with wudhu-friendly makeup — products formulated to be easily removed during wudhu, the Islamic cleansing ritual performed before prayer. Founded by Dahlia Nadirah and Luqman Hakim, the label is known for its affordable, cruelty-free products, especially liquid lipsticks and lip creams designed for easy removal. Other upstarts such as Maaez and Syedewa Cosmetics are tapping similar demand with cruelty-free, affordable halal lines. Raskidah Ali, a halal expert from Malaysia, says the rise of halal cosmetics is driven by the transparency they offer around ingredients. Still, despite the growth of local brands, Southeast Asia remains crowded with original equipment manufacturer (OEM) products. In Indonesia, the situation is similar. The influx of OEM products — often rebranded Chinese imports — is diluting trust. International Trade Centre data shows Chinese cosmetics accounted for nearly half of the Indonesian beauty market in 2023. Exports of Chinese cosmetics and toiletries to Indonesia grew from $4.25 billion in 2020 to $7.21 billion in 2024, according to Wind Information. Ali notes that halal certification gives consumers a sense of security, especially as low-cost products may not use safe ingredients. Shoppers are paying closer attention: over half (58%) of consumers in Thailand, Malaysia, and the Philippines scrutinize product ingredients when shopping for skincare and makeup, according to Milieu. East Asia accounts for 60% of new halal beauty brands The clean beauty movement has fueled innovation in halal cosmetics. 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, according to DinarStandard’s report. East Asian players are making aggressive moves into the market. Chinese brands such as Sheglam and retail giant KKV Group have rapidly expanded their presence in Muslim-majority markets, winning over younger consumers with affordability and attractive packaging. Brands like Judydoll have become particularly popular in Indonesia, where their combination of quality and accessible pricing appeals to younger generations. Meanwhile, South Korean companies are solidifying their halal credentials through strategic partnerships and certifications, strengthening their foothold in Muslim markets — a push reinforced by new free trade agreements with the Gulf Cooperation Council. K-beauty giants are embracing halal certification, with 23% of their exports now meeting Islamic requirements. Their popularity is underpinned by cultural influence, especially the reach of K-pop and K-dramas in the region. Southeast Asian consumers also favor K-beauty’s signature ingredients. Snail mucin is prized for its ability to deeply hydrate and repair skin barriers; it contains glycolic acid, zinc, and proteins that accelerate skin regeneration, making it ideal for treating hyperpigmentation, fine lines, and scarring. Centella asiatica, often referred to as cica, is a powerhouse herb in K-beauty known for its soothing and anti-inflammatory properties. Local skin tones, ingredients essential for market relevance Local market fit remains essential. Antarikso says that to stay relevant, cosmetics brands must provide shades tailored to local skin tones, alongside relevant ingredients and accessible pricing. Statista data bears this out: 65% of Malaysians favor South Korean makeup and skincare products, followed by 61.2% in Vietnam and 59.8% in Indonesia. This preference is driven not only by cultural influence but also by the perceived effectiveness and innovation associated with these products. The availability of products on e-commerce platforms has also helped South Korean brands rise in the region. According to Cosmetic Design Asia, brands including Cosrx, Some By Mi, and Torriden have gained popularity, supercharged by e-commerce platforms like Shopee. Livestream shopping is playing a growing role: in Vietnam, 31% of products are purchased through livestreaming, followed by Thailand at 26% and Malaysia at 20%. South Korean brand Tirtir exemplifies the push toward inclusivity, expanding its range from three shades to 43. “The principle of relevance in the cosmetics industry means that a brand must be able to deliver products that suit the needs, preferences, and values of its consumers,” Antarikso says. “It is not just a matter of following beauty trends; relevant cosmetic products must address real issues such as ingredient safety, skin benefits, environmental sustainability, and representation of consumer identity and lifestyle.” That alignment is especially critical for Gen Z: 86% of Asia-Pacific consumers in this cohort say they will pay a premium for brands that are socially responsible, according to KPMG International. “As a result, consumers feel that the product not only enhances their appearance, but also reflects who they are and what they care about, thereby fostering emotional connection and long-term loyalty to the brand,” he adds. Boycott of Western brands opens space for local players The rise of local cosmetics has been accelerated by geopolitical tensions surrounding the Israel-Palestine conflict. A fatwa issued by the Indonesian Ulema Council (MUI), for example, encourages the boycott of products affiliated with Israel due to deeply held religious beliefs concerning justice and ethical consumption. About 87% of Indonesia’s population of 280 million is Muslim, and pro-Palestine groups and apps have emerged urging consumers to boycott brands. The ongoing boycott of Israeli-linked brands in Asia and the Middle East has shifted consumer preferences, driving demand for beauty products from alternative countries. Unilever first acknowledged in February that sales growth in Southeast Asia had been hurt by shoppers in Indonesia boycotting its brands in response to the geopolitical situation. In October 2024, the company revealed its market share in Indonesia had declined to 34.9% in the third quarter from 38.5% a year earlier, according to Reuters. Tauhid Ahmad, an economist at the Institute for Development of Economics and Finance (INDEF), explains that while consumers are moving away from products linked to Israel, affordability is also a factor. Locally made products tend to be more accessible. “The production of small and medium enterprises in Indonesia is growing,” Ahmad says. “Currently, people are opting for other products because they are not able to pay for premium products.”

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Faith meets formula: Halal beauty rises across Asia