Indonesia’s halal cosmetics industry is undergoing rapid transformation. As the country with the largest Muslim population in the world, Indonesia is preparing to implement mandatory halal certification for cosmetic products by 2026. This shift has elevated the halal label from a religious marker to a broader symbol of quality, safety, and modern lifestyle.

As a result, the market is becoming increasingly competitive, with both local and international brands striving to meet evolving consumer expectations.

2. Halal as the New Standard

Previously considered optional, halal certification is now seen as essential by many consumers. It represents not only compliance with religious values but also assurance of product safety and ethical production.

This transition is supported by regulatory frameworks such as PP No. 42 of 2024, as well as institutions like LPPOM (Assessment Institute for Foods, Drugs, and Cosmetics), which plays a key role in ensuring industry readiness. Through initiatives like Halal On 30, LPPOM helps businesses understand the certification process quickly and efficiently.

3. Competition Between Local and Imported Brands

The growing demand for halal cosmetics has intensified competition in the Indonesian market.

• Local brands benefit from:
  • Faster innovation cycles
  • Better understanding of local consumer needs
  • More affordable pricing
• Imported brands rely on:
  • Advanced global research
  • Strong premium branding

However, imported products—especially those without halal certification—are gradually losing ground as consumer awareness increases.

4. Innovation in Local Halal Products

Several Indonesian companies have successfully positioned themselves as leaders in halal skincare innovation. Brands such as Wardah, Safi, and Natur-E continuously introduce products that combine modern skincare technology with halal certification.

For example, Safi launched Age Defy 3X Advanced Retinoids, a product combining three types of retinoids and claiming significant wrinkle reduction. This demonstrates that halal products can compete with global brands in both effectiveness and scientific development.

5. Changing Consumer Behavior

Today’s consumers—particularly Muslim women aged 20–40—are more informed and selective. They no longer focus solely on product results but also demand:

• Transparency in ingredients
• Clear production processes
• Verified halal certification
• Ethical brand commitments

Digital media and increased access to information have further strengthened awareness about halal skincare, making it a mainstream preference rather than a niche market.

6. The Role of Halal Certification

Halal certification has evolved into a critical factor for both businesses and consumers:

• For businesses:
  It serves as a competitive advantage and builds trust.
• For consumers:
  It ensures safety, quality, and alignment with personal values.

Even international brands are beginning to recognize this shift and are seeking halal certification to remain competitive in Indonesia.

Toward a Global Halal Industry Leader

Indonesia’s halal cosmetics sector is entering a new era driven by regulation, innovation, and consumer awareness. The competition between local and imported brands is ultimately beneficial, encouraging the development of products that are more innovative, safe, and relevant to modern lifestyles.

With strong institutional support and a rapidly growing market, Indonesia has the potential to become a global leader in halal cosmetics.

References 

Yana. (2026, January 23). Halal skincare: Competition between local and imported brands in the Indonesian market. Halal MUI. https://halalmui.org/en/halal-skincare-competition-between-local-and-imported-brands-in-the-indonesian-market/

Halal MUI. (2026). The Indonesian halal cosmetics market is increasingly competitive. https://halalmui.org/jurnal-halal/175/