Halal beauty market accelerates to $118 billion by 2028

Based on the 2024/2025 State of the Global Islamic Economy (SGIE) Report, global Muslim spending on cosmetics reached $87bn in 2023 (up 2.9% from 2022), on track to hit $118bn by 2028 at a CAGR of 6.3%.

The report also stated that the halal beauty market is driven primarily by Gulf Cooperation Council (GCC) investment, China supply chains, anti-counterfeit efforts. While wider awareness of halal positioning in both Muslim-majority plus -minority markets was behind topline growth, halal claims were not the only driver. Buyers also weighed price, performance, sustainability, digital access.

SM Group expands wellness retail footprint

Filipino conglomerate SM Group is addressing growing consumer demand for beauty plus wellness products through its retail subsidiaries, including Watsons Philippines. Also known as SM Investments Corporation, the company’s retail operations are said to be the Philippines’ largest plus most diversified, consisting of grocery stores, department stores, specialty stores. Through the network, the Group aims to meet rising consumer demand for cosmetics plus wellness products through greater accessibility across the country.

Travel retail becomes strategic growth channel

Rituals is among beauty brands that are increasingly leveraging travel retail, forming strategic partnerships in this sector as a pillar of growth.

In July, the skin care brand officially entered Shanghai Pudong Airport Terminal 1, retailing a range of its most popular collections. The move is the first step in a planned series of expansion across CDF-Sunrise’s footprint in China travel retail, which also includes Shanghai Hongqiao Airport, Beijing Capital Airport, Daxin Airport.

Kao refreshes cosmetics strategy for resilience

Japanese cosmetics giant Kao looks to bolster profitability plus long-term growth by focusing resources on six brands, while building a more resilient business structure.

As a key growth driver within the Kao Group, the Cosmetics Business is targeting net sales of JPY400 billion (USD2.68bn) plus an operating margin of 15% at the “earliest feasible time” after 2030. A set of strategic initiatives have been announced, including dividing six brands poised for global growth into three distinct overseas expansion models, sharpening brand positioning, enhancing competitiveness in the international market.

Shiseido expands cross-industry partnerships

Shiseido Travel Retail looks to build on its strategic cross-industry partnerships, on the back of a well-received campaign in Thailand. The initial phase of the campaign brought together four key players in the industry—ANESSA, Alipay+, Tourism Authority of Thailand, King Power.

The initiative marks Shiseido’s first-ever partnership with a national tourism board, a new strategic move for the company within the travel retail sector. Additionally, it builds upon Shiseido Travel Retail’s existing partnership with Alipay+ to further enhance the modern traveller’s experience through digital convenience plus immersive engagement.

Market convergence signals maturation

The halal beauty market’s 6.3% CAGR toward $118 billion by 2028 reflects not merely Muslim population growth but sophisticated market maturation where halal certification becomes one attribute among several (price, performance, sustainability) rather than the sole purchase driver. GCC investment plus China supply chain integration demonstrates how halal beauty transitions from niche specialty to mainstream cosmetics category, with anti-counterfeit efforts addressing trust deficits that historically plagued religious certification systems.

The parallel developments—SM Group’s Philippines retail expansion, travel retail growth, Kao’s strategic focus, Shiseido’s cross-industry partnerships—illustrate broader Asian beauty market dynamics where distribution innovation, digital integration, strategic brand consolidation drive growth across segments. For halal beauty specifically, success increasingly depends on matching mainstream cosmetics’ performance plus accessibility rather than competing solely on religious compliance, suggesting the sector’s future lies in seamless integration within conventional beauty retail rather than segregated specialty channels.

Original Article:

CosmeticsDesign-Asia. (2025, October 17). Financial focus. CosmeticsDesign-Asia. Retrieved from https://www.cosmeticsdesign-asia.com/Article/2025/10/17/financial-focus/