On November 6th, China Beauty Expo’s World Tour stopped in Malaysia. This stop on the tour brought together leaders in Malaysia’s cosmetics industry, including Ms Li Mingfen, Chairman of the Malaysian Cosmetics and Detergent Association; Ms. Claudia Bonfiglioli, Director of International Development for China Beauty Expo (CBE); Mr. Abu Bakar Yusof, Director the Lifestyle Team from the Trade and Service Promotion Department of the Malaysia External Trade Development Corporation (MATRADE); Ms. Eva Wang, Business Development Manager of the Cosmetics Division of Reach24H; and Mr. Matthieu Rochette-Schneider, General Manager in China for Centdegres. They joined more than 100 members of the Malaysian Cosmetics and Detergent Association and Malaysian Trade Promotion Association to discuss the development of the halal cosmetics market.
Many Companies Eyeing the Halal Cosmetics Market
Data from British research firm, Technavio, indicates that consumers spent US$27 billion on halal cosmetics in 2016. Annual growth in halal cosmetics sales is expected to exceed 14%, creating a $45 billion market by 2020 – nearly the same size as China’s cosmetics market.
These growth prospects are attracting new international players. Early this year, top Korean OEM, Cosmax, received halal certification for one of its factories, and began its push into the halal cosmetics market. Shiseido-affiliated brand, Za, also recently introduced 28 halal healthcare products in Malaysia. Similarly, Colgate-Palmolive’s halal-certified toothpaste products are on sale in Malaysia. Most products manufactured in Indonesia by L’Oreal brand, Garnier, are halal certified. And, in the UK, L’Oreal is reportedly preparing to use Muslim models for its new foundation series, True Match.
“In the Southeast Asian or even global halal cosmetics market, the biggest winner is probably BASF,” according to one industry expert. BASF reportedly obtained halal certification for its first cosmetics materials in 2012 and now has 145 chemical products with halal certification. These materials are used for facial cleansers, bubble bath solutions, and household cleaners.
CBE Opportunities in the $45 billion Halal Cosmetics Market
Compared to many segments of China’s market, the halal cosmetics market still presents a greenfield opportunity. The Malaysian Cosmetics and Detergent Association chairman, Ms. Li Mingfen, noted, “The Chinese cosmetics market has become one of the major areas of competition for global cosmetics companies, and, no matter entering the Chinese market or going global via the CBE platform, there is always a connection with China’s “Belt and Road Initiative”.
This fits with CBE’s strategy of creating opportunities for overseas companies in China and helping Chinese companies to go global. Sang Ying, Secretary-General for CEB elaborated, “CBE is actively helping Chinese cosmetics to go global. During the next three years, Asian countries will be an important target. We are also organizing professional buyer groups from across Asia for CBE 2018. These influential buyer groups will have the opportunity meet with more than 1,000 OEMs, packaging materials, equipment, and raw materials exhibitors.”
Mr. Abu Bakar Yusof, Director of the Lifestyle Team of the Trade and Service Promotion Department of MATRADE shared his views, “Just like food, halal cosmetics reflect national customs. For consumers, they have specific product and cultural considerations, high levels of acceptance and little education cost.” This creates a great opportunity for Chinese suppliers.
Companies seeking to enter the Chinese market still must understand a range of laws, regulations, and approval procedures. Eva Wang, Business Development of the Cosmetics Division of Reach24H offered attendees guidelines for entering China.
Since halal cosmetics do not contain alcohol or animal fat, they tend to fit well into the category of “green cosmetics”. Mr. Matthieu Rochette-Schneider, General Manager in China for Centdegres, presented ideas on how to build a brand identify around greenness to expand opportunities for halal cosmetics.
Li Mingfen from the Malaysian Cosmetics and Detergent Association and Abu Bakar Yusof from MATRADE announced their strategic partnerships with CBE. They are working together to organize professional buyer groups and connect new partners at CBE 2018.
Good development
Posted by: Halal Certification | 03/29/2018 at 23:18
HALAL CERTIFICATION is developing and geeting global ataintion
Posted by: sana hanif | 03/29/2018 at 22:59