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Gen Z and the Future of Halal Cosmetics: What Drives Customer Satisfaction?

JAKARTA – Halal cosmetics are gaining increasing attention as consumer awareness of halal lifestyles continues to rise, particularly in Muslim-majority countries like Indonesia. The halal industry spans a wide range of sectors—food, pharmaceuticals, tourism, finance, and cosmetics—all operating under sharia principles. In the cosmetics segment, halal products are not only viewed as safer and more compliant with religious values but are also appealing to non-Muslim consumers seeking ethical and high-quality options.

Globally, halal-related spending reached USD 2.29 trillion in 2022 and is expected to climb to USD 3.1 trillion by 2027. Within that, halal cosmetics alone account for USD 84 billion, a figure that highlights the vast growth opportunities in this market.

Indonesia’s Role in the Halal Beauty Market

Indonesia stands as the second-largest consumer of halal cosmetics worldwide, with market spending of around USD 8.4 billion. This potential is strengthened by the country’s massive digital landscape—over 220 million internet users as of 2022—fueling a shift in consumer habits toward online shopping. For beauty brands, this means adapting to a digital-first environment is no longer optional, but necessary.

Why Customer Satisfaction Matters

The study underscores customer satisfaction as the cornerstone of loyalty. When consumers are happy with product quality and value, they are more likely to repurchase and recommend the brand to others. Three main factors emerge as drivers of satisfaction:

  1. Overall product quality
  2. Perceived value
  3. Perceived risk

For halal cosmetics specifically, certification and clarity of halal labeling play an equally critical role, alongside consumer reviews and online reputation.

Spotlight on Generation Z

The research zooms in on Generation Z (born 1995–2010)—a demographic that is tech-savvy, digitally connected, and accustomed to online shopping. While they have high standards for quality and user experience, they are also known for being less brand-loyal, making them quick to explore alternatives.

Understanding what motivates Gen Z’s satisfaction with halal cosmetics—whether it’s product performance, transparency of halal certification, or trustworthy online reviews—is key to designing effective marketing strategies.

Research Approach

The study applied a quantitative survey method, targeting 215 Muslim women from Gen Z who had purchased halal cosmetics online at least twice in the past year. Using Structural Equation Modeling (SEM-PLS), the analysis explored the link between product quality, perceived value, perceived risk, and customer satisfaction, and how these impact brand loyalty.

Key Findings

  • Most respondents purchase halal cosmetics online “occasionally” or “often.”
  • The majority reported being satisfied, with factors like product quality, halal labeling, and online reviews driving this satisfaction.
  • Of these, quality and halal certification ranked as the most decisive elements.
  • Customer satisfaction acts as a bridge between product perceptions and purchase intentions, highlighting its central role in building loyalty.

Strategic Implications for the Industry

The research offers several takeaways for halal cosmetic brands:

  1. Consistency in Quality
    Continuous improvements in product formulation, packaging, and safety can strengthen consumer trust.
  2. Transparency in Halal Certification
    Clearly displayed and verifiable halal labels, both on packaging and online platforms, enhance credibility and consumer confidence.
  3. Active Management of Online Reviews
    Since digital reviews strongly shape purchasing decisions, companies should provide space for authentic feedback and engage proactively with customer concerns.

By embracing these strategies, halal cosmetic brands can build stronger loyalty—especially among Gen Z women who are shaping the future of online beauty consumption.

 

Original Article:

Universitas Airlangga. (2025, September 2). Faktor-Faktor yang Mempengaruhi Kepuasan Konsumen terhadap Kosmetik Halal. Retrieved from https://unair.ac.id/faktor-faktor-yang-mempengaruhi-kepuasan-konsumen-terhadap-kosmetik-halal/