JAKARTA – Southeast Asia is becoming a crucial testing ground for the international beauty industry’s newest wave: halal-certified cosmetics. Malaysia, Indonesia, and Singapore are now positioned among the world’s top four markets for halal cosmetics, based on findings from DinarStandard’s State of the Global Islamic Economy Report 2024/2025.

Muslim consumers invested $87 billion in cosmetics during 2023, with market growth occurring across both Muslim-majority and non-Muslim nations, the report indicates.

East Asian Brands Capture Southeast Asian Consumers

Beauty brands from East Asia are increasingly penetrating this market, gaining traction throughout Southeast Asia — especially in Malaysia and Indonesia, which host the region’s most substantial Muslim communities.

Clean Beauty Principles Align with Halal Standards

The clean beauty movement and halal beauty concepts are merging in Southeast Asia. A 2024 study by Milieu Insights, an international market research firm, reveals that seven out of 10 Southeast Asian consumers consider clean beauty products safer and better than conventional beauty items, while 66% make natural ingredients a priority when buying.

Indonesian brand Wardah demonstrates this transformation. The brand has reached 28 international markets while leading the way in halal-certified anti-aging biotechnology.

Price Sensitivity Shapes Consumer Choices

However, affordability is becoming equally important as certification. Sancoyo Antarikso, chairman of the Indonesian Cosmetics Companies Association (Perkosmi), observes that although halal cosmetics have traditionally been the preferred option in the world’s largest Muslim-majority nation, pricing has become the main consideration for many shoppers in bigger, more progressive urban areas.

“Establishing competitive pricing is now essential, particularly as consumers experience financial pressure from increasing costs in other areas,” Antarikso explains. “Through introducing ‘affordable premium’ products — which blend accessibility with perceived quality — cosmetics companies can appeal to a wider customer base, especially from lower-to-middle-income groups, while maintaining their premium image.”

Ritual-Friendly Formulations Drive Brand Loyalty

In Malaysia, So.Lek Cosmetics has developed a dedicated customer base with wudhu-friendly makeup — formulations designed for easy removal during wudhu, the Islamic purification ritual conducted before prayer.

Established by Dahlia Nadirah and Luqman Hakim, the brand is recognized for its budget-friendly, cruelty-free offerings, particularly liquid lipsticks and lip creams engineered for simple removal. Emerging brands like Maaez and Syedewa Cosmetics are addressing similar consumer needs with cruelty-free, reasonably priced halal product lines.

Transparency Drives Halal Certification Demand

Raskidah Ali, a Malaysian halal specialist, attributes the surge in halal cosmetics to the ingredient transparency they provide. Nevertheless, despite local brand expansion, Southeast Asia continues to be saturated with original equipment manufacturer (OEM) products.

In Indonesia, the circumstances are comparable. The proliferation of OEM products — frequently rebranded Chinese imports — is undermining consumer confidence.

International Trade Centre statistics show that Chinese cosmetics represented nearly half of Indonesia’s beauty market in 2023. Chinese cosmetics and toiletries exports to Indonesia increased from $4.25 billion in 2020 to $7.21 billion in 2024, according to Wind Information.

Ali emphasizes that halal certification provides consumers with assurance, particularly since budget products may contain questionable ingredients. Consumers are becoming more vigilant: more than half (58%) of shoppers in Thailand, Malaysia, and the Philippines carefully examine product ingredients when purchasing skincare and makeup, Milieu reports.

Innovation Concentrated in Three Key Markets

The clean beauty trend has sparked innovation in halal cosmetics. Indonesia, Malaysia, and South Korea have emerged as the sector’s innovation leaders, together representing over 60% of new halal beauty brands introduced this year, according to DinarStandard’s report.

Chinese and Korean Brands Expand Aggressively

East Asian companies are pursuing the market aggressively. Chinese brands including Sheglam and retail powerhouse KKV Group have quickly expanded throughout Muslim-majority markets, attracting younger demographics with competitive prices and appealing packaging. Brands like Judydoll have gained significant popularity in Indonesia, where their balance of quality and affordable pricing resonates with younger consumers.

Meanwhile, South Korean firms are reinforcing their halal credentials through strategic alliances and certifications, strengthening their position in Muslim markets — an initiative supported by recent free trade agreements with the Gulf Cooperation Council.

K-Beauty Giants Embrace Islamic Requirements

K-beauty leaders are adopting halal certification, with 23% of their exports now complying with Islamic standards. Their appeal is supported by cultural influence, particularly the widespread reach of K-pop and K-dramas throughout the region. Southeast Asian consumers also appreciate K-beauty’s distinctive ingredients. Snail mucin is valued for its deep hydration and skin barrier repair capabilities; it contains glycolic acid, zinc, and proteins that enhance skin regeneration, making it effective for addressing hyperpigmentation, fine lines, and scarring. Centella asiatica, commonly known as cica, is a prominent ingredient in K-beauty celebrated for its calming and anti-inflammatory benefits.

Localization Key to Market Success

Local market adaptation remains crucial. Antarikso states that to maintain relevance, cosmetics brands must offer shades matched to local skin tones, along with appropriate ingredients and competitive pricing.

Statista data supports this: 65% of Malaysians prefer South Korean makeup and skincare products, followed by 61.2% in Vietnam and 59.8% in Indonesia. This preference stems not only from cultural influence but also from the perceived quality and innovation these products represent.

E-Commerce Accelerates Regional Growth

The presence of products on e-commerce platforms has facilitated South Korean brands’ regional expansion. According to Cosmetic Design Asia, brands including Cosrx, Some By Mi, and Torriden have gained prominence, amplified by e-commerce platforms like Shopee. Livestream shopping is playing an expanding role: in Vietnam, 31% of products are bought through livestreaming, followed by Thailand at 26% and Malaysia at 20%.

South Korean brand Tirtir demonstrates the movement toward inclusivity, expanding its shade range from three to 43.

Brand Relevance Extends Beyond Beauty Trends

“The concept of relevance in the cosmetics sector means that a brand must deliver products aligned with consumers’ needs, preferences, and values,” Antarikso says. “It extends beyond merely following beauty trends; relevant cosmetic products must tackle genuine concerns such as ingredient safety, skin benefits, environmental sustainability, and representation of consumer identity and lifestyle.”

This alignment is particularly vital for Gen Z: 86% of Asia-Pacific consumers in this demographic indicate they will pay extra for socially responsible brands, according to KPMG International.

“Consequently, consumers perceive that the product not only improves their appearance but also represents who they are and their values, creating emotional bonds and long-term brand loyalty,” he adds.

Geopolitical Tensions Boost Local Brands

The growth of local cosmetics has been accelerated by geopolitical tensions related to the Israel-Palestine conflict. A fatwa from the Indonesian Ulema Council (MUI), for instance, promotes boycotting products connected to Israel based on deeply rooted religious convictions about justice and ethical consumption. Approximately 87% of Indonesia’s 280 million population is Muslim, and pro-Palestine organizations and applications have emerged encouraging consumers to avoid certain brands.

The continuing boycott of Israeli-associated brands in Asia and the Middle East has altered consumer preferences, increasing demand for beauty products from alternative sources. Unilever first acknowledged in February that sales growth in Southeast Asia had been affected by Indonesian shoppers boycotting its brands due to the geopolitical situation. In October 2024, the company disclosed its market share in Indonesia had dropped to 34.9% in the third quarter from 38.5% a year prior, Reuters reported.

Tauhid Ahmad, an economist at the Institute for Development of Economics and Finance (INDEF), explains that while consumers are shifting away from products associated with Israel, affordability also influences decisions. Domestically manufactured products are typically more accessible.

“Small and medium enterprise production in Indonesia is expanding,” Ahmad says. “Currently, consumers are choosing alternative products because they cannot afford premium offerings.”

Original Article:

Jian Daily. (2025, October 21). Faith meets formula: Halal beauty rises across Asia. Retrieved from https://jingdaily.com/posts/faith-meets-formula-halal-beauty-rises-across-asia