Introduction

Halal skincare is rapidly gaining recognition as a significant segment within the global cosmetics industry. Once considered a niche market, it is now evolving into a mainstream standard driven by increasing consumer awareness, regulatory developments, and lifestyle changes. This shift is particularly evident in Indonesia, which holds a strategic position in both consumption and future production.

Growing Market Potential

The demand for halal cosmetic products has shown consistent growth in recent years. According to the State of the Global Islamic Economy Report 2023/2024, Indonesia ranked as the second-largest consumer of halal cosmetics worldwide, with spending reaching USD 5.4 billion in 2022. This figure is expected to rise as more consumers prioritize safety, ethical production, and compliance with Islamic principles.

In addition, Indonesia’s broader cosmetics industry is projected to reach approximately USD 9.17 billion in 2024, with steady annual growth. This expansion is supported by increasing interest in self-care, as well as rising demand for natural, halal-certified, and technologically advanced products. The growth of small and medium enterprises (SMEs) and the accessibility of e-commerce platforms have further accelerated market expansion.

Digital Expansion and Consumer Challenges

The proliferation of skincare products across online marketplaces has made halal cosmetics more accessible than ever. Consumers can now choose from both local and international brands with ease. However, this convenience also introduces new risks.

Without proper regulation and monitoring, some products may fail to meet safety or halal standards. Issues may arise from unclear ingredient sources or non-compliant production processes, making it essential for consumers to remain cautious when purchasing skincare products online.

Regulatory Framework and Halal Certification

To address these concerns, the Indonesian government has implemented stricter regulations regarding halal certification. Under Government Regulation No. 42/2024, halal certification for cosmetic products will become mandatory in stages from October 17, 2021, to October 17, 2026. After this deadline, all cosmetic products must be halal-certified unless clearly labeled otherwise.

Supporting this framework, authorities are developing detailed guidelines based on the Halal Product Assurance System (SJPH). These guidelines require businesses to ensure halal compliance throughout the entire production chain, including ingredient selection, manufacturing processes, and final product labeling. Continuous evaluation is also necessary to maintain product integrity.

Supervision and Quality Assurance

Although halal certification is not the primary responsibility of Indonesia’s National Agency of Drug and Food Control (BPOM), the agency plays a crucial role in post-market supervision. For example, products are tested for the presence of prohibited substances, such as porcine DNA, particularly in items claiming halal certification.

If violations are detected, authorities can take regulatory action to ensure consumer protection and maintain industry standards.

Industry Support and Innovation

To help businesses comply with halal requirements, various institutions provide technical and certification support. The Assessment Institute for Foods, Drugs, and Cosmetics of the Indonesian Council of Ulama (LPPOM MUI) offers services to simplify the certification process.

One notable initiative is the “Halal On 30” program, which provides practical guidance for companies seeking certification. Additionally, accredited laboratories offer advanced testing services, including water permeability and vegan testing, enabling producers to meet both halal and broader consumer expectations.

Halal skincare is no longer just a passing trend—it is becoming a defining standard in the cosmetics industry. With a rapidly expanding market, stricter regulations, and growing consumer awareness, halal certification serves as both a guarantee of safety for users and a competitive advantage for producers.

As Indonesia strengthens its regulatory framework and industry infrastructure, it is well-positioned to become a global leader in halal skincare innovation and production.

References 

Yana. (2026, March 9). Halal skincare: A promising market with increasingly stringent regulations. Retrieved from https://halalmui.org/en/halal-skincare-a-promising-market-with-increasingly-stringent-regulations/