Global Halal Cosmetics Market Surpasses $120 Billion as Indonesia Leads Expansion

By Duggan Flanakin

Persistence Market Research forecasts the global halal cosmetics market—encompassing skincare, haircare, makeup, fragrances, and personal care—will more than double by 2032, reaching $120.2 billion from $53.7 billion in 2024. Another report predicts it could rise to $171.7 billion by 2033.

Indonesia, Pakistan, India, and Bangladesh host nearly half the world’s Muslim population (about 835 million), while 400 million Muslims reside in 16 Middle Eastern nations, including 1.5 million in Israel, making the region the second-largest market for halal goods. Egypt, Turkey, and Iran each have over 80 million Muslims, with Iraq, Saudi Arabia, Yemen, Syria, Jordan, the United Arab Emirates, and other smaller states also witnessing growing demand for halal cosmetics.

Indonesia’s cosmetics industry, valued at $7.4 billion in 2024, is expanding rapidly, partly due to President Prabowo Subianto’s economic policies. Paragon Technology and Innovation, Indonesia’s largest cosmetics company with 25% of the domestic market, began as a family-run business in a garage 40 years ago. Last year, its 14 beauty brands, including the flagship Wardah line, sold hundreds of millions of products globally. Wardah made history in 2022 by becoming the first Indonesian halal cosmetics brand to showcase at London Fashion Week.

Paragon, which operates 43 distribution centers in Indonesia and reported revenues 400 times higher than in 2001, attributes its growth to the 2008–2010 Hijrah movement, which encouraged Indonesian women to adopt Islamic values, including halal cosmetics. The market’s expansion is driven by ethical consumerism, growing Muslim populations, and heightened awareness of halal certification.

Muslim consumers prioritize products free from harmful or non-permissible ingredients, aligning with religious and health-conscious values. Non-Muslims also seek halal-certified options for ethical and clean beauty alternatives. Western cosmetics companies are increasingly pursuing halal certification, which requires animal-free, cruelty-free formulations and compliance with Islamic laws, including ethical sourcing and fair labor practices.

Halal inspectors verify products, including imported Chinese-made items, to ensure they meet stringent standards. Companies like Paragon are innovating with consumer-friendly formulations, packaging, and marketing strategies. Younger Muslim consumers, particularly millennials and Gen Z, drive growth through influencer endorsements and trendy, ethical products.

Malaysian influencer Ameera Khan, Somali supermodel Iman Abdulmajid, and former Nisa Foundation executive Yasmine Youssef promote halal beauty on platforms like TikTok. At the Harvard Asia Business Conference, Paragon’s Dr. Sari Chairunnisa outlined plans for international expansion, including partnerships in Saudi Arabia to establish a local halal cosmetics company.

Saudi Arabia’s halal cosmetics market is projected to reach $14.67 billion by 2030, fueled by rising disposable incomes and government support. Paragon CEO Salman Subakat emphasized the importance of local champions in fostering public education and social good, noting that nine out of 10 Net Zero-exceeding companies are family-owned like his own.

Paragon’s products, used daily by millions, aim to boost consumer confidence, which Subakat argues empowers individuals to contribute positively to society. As a family-owned business, Paragon maintains its mission while adapting to technological advancements and market trends.