In recent years, the global cosmetics industry has witnessed a significant shift towards ethical and religiously compliant products. At the forefront of this movement is the burgeoning halal cosmetics sector, which caters to the specific needs and values of Muslim consumers worldwide. As the demand for halal-certified beauty products continues to soar, understanding the intricacies of halal certification, particularly in key markets like Indonesia and the Gulf Cooperation Council (GCC)/Middle East region, has become crucial for cosmetics manufacturers and exporters.

This comprehensive guide delves into the world of halal cosmetics certification, offering insights into the regulatory landscapes of Indonesia and the GCC region, the certification processes, challenges, and the immense opportunities that await businesses in this rapidly growing market.

Market Size and Projections

The halal cosmetics market has experienced remarkable growth in recent years, driven by increasing awareness among Muslim consumers and a growing preference for ethical and natural products among non-Muslim consumers as well.

According to the State of the Global Islamic Economy Report 2023/24, the global halal cosmetics market was valued at approximately $66 billion in 2022 and is projected to reach $93 billion by 2027, growing at a CAGR of 7.1%. This growth is particularly pronounced in key Muslim-majority markets such as Indonesia, Malaysia, and the GCC countries.

Key Drivers of Growth

1. Rising Muslim Population: The global Muslim population is expected to reach 2.2 billion by 2030, driving demand for halal-certified products.
2. Increasing Disposable Income: Growing economic prosperity in Muslim-majority countries is fueling consumer spending on personal care and cosmetics.
3. Awareness and Education: Greater awareness about ingredient sourcing and ethical production is influencing consumer choices.
4. Digital Marketing and E-commerce: The rise of social media and online shopping has made halal cosmetics more accessible to a global audience.
5. Product Innovation: Continuous innovation in halal cosmetics formulations is attracting a wider consumer base, including non-Muslim consumers seeking natural and ethical products.

Understanding Halal Cosmetics

What Makes a Cosmetic Product Halal?

Halal, an Arabic term meaning “permissible” or “lawful,” extends beyond food to encompass various aspects of Muslim life, including personal care and cosmetics. The definitions of Halal, Haram, and Najis will help to clarify the concept.

Halal refers to items and actions that are permissible under Islamic Sharia law. This includes various products, particularly those that are safe and lawful for Muslims to use.

Haram, on the other hand, denotes what is prohibited. Materials classified as Haram include:

• Blood
• Carrion (dead animals not properly slaughtered)
• Pork and its derivatives
• Animals not slaughtered in the name of Allah
• Khamr (intoxicants)
• Parts of the human body
• Carnivorous animals (like wild cats and dogs)
• Amphibians (animals that live both on land and in water)

An important exception is made for sea creatures, which are generally considered Halal, regardless of how they are caught or prepared.

Najis refers to impurities or filth that can invalidate acts of worship. This can be categorized as:

• Heavy Najis: Includes items like pig products and dog saliva.
• Medium Najis: Encompasses urine, feces, carrion, blood, and intoxicants.
• Light Najis: For example, the urine of breastfed baby boys.

Based on the above principles, for a cosmetic product to be considered halal, it is important to secure:

• Ingredient Source: All ingredients must be derived from halal sources. This means no animal products from forbidden animals (like pigs) or any ingredients that are alcohol-based.
• Processing: The manufacturing process must also be halal, meaning no cross-contamination with non-halal substances.
• Ethical Standards: Halal cosmetics should be produced in a way that aligns with Islamic ethics, including fair labor practices and environmental considerations.
• Certification: Many halal cosmetic brands seek certification from recognized halal certification bodies, which can provide assurance to consumers about the product’s compliance.
• No Harmful Ingredients: Halal cosmetics should also avoid harmful or toxic substances that could be detrimental to health.

Key Differences Between Halal and Non-Halal Cosmetics

Aspect	Halal Cosmetics	Non-Halal Cosmetics
Ingredients	Derived from plants, minerals, and halal animal sources with non-alcohol-based ingredients	May contain ingredients from any source, including non-halal animals and alcohol-based ingredeints
Animal Testing	Typically cruelty-free	May or may not be cruelty-free
Production Process	Strictly controlled to avoid cross-contamination	May not have specific controls for halal integrity
Certification	Certified by recognized halal authorities	No halal certification required

Indonesia’s Halal Regulatory Framework

Indonesia has implemented comprehensive halal regulations that significantly impact the cosmetics industry.

Key Regulatory Bodies

• Indonesian Ulema Council (Majelis Ulama Indonesia – MUI): The MUI is the primary body responsible for issuing halal certificates. It conducts assessments and provides guidance on halal standards.
• Ministry of Religious Affairs: This ministry plays a role in formulating policies related to halal certification and ensures that religious guidelines are adhered to.
• Halal Product Assurance Agency (Badan Penyelenggara Jaminan Produk Halal – BPJPH): Established under the Ministry of Religious Affairs, this agency oversees the implementation of the halal certification system and promotes halal product assurance.

Key Regulations

• Law No. 33 of 2014 on Halal Product Assurance (HPA Law): This landmark legislation enforced by the BPJPH mandates halal certification for all products circulated and traded in Indonesia, including cosmetics.
• Government Regulation No. 31 of 2019: This regulation provides detailed implementation guidelines for the JPH Law.

A transition period for the mandatory halal certification of cosmetics is currently in effect, set to conclude on October 17, 2026. By this date, all halal cosmetic products—including makeup and skincare items that can be accidentally ingested (like lipstick and lip balm), as well as personal care products such as mouthwash, toothpaste, body lotion, soap, and nail polish—must obtain halal certification from the BPJPH.

Halal Certification Process in Indonesia

Obtaining halal certification for cosmetics in Indonesia involves a rigorous process to ensure compliance with Islamic principles and local regulations.

Halal Certification Compliance	Details
Requirements	– Company/business details – Product name and type – Product data and materials used – Product processing – Halal product assurance/guarantee system document
Certification Validation	4 years
Renewal Requirement	– 3 months before the expiration date – Copy of Halal Certificate – A statement letter explaining that the registered product has not changed
Post-certification	– Report Changes to Certification Data– Update Ingredient Composition/Harmonization System Code– Maintain Product Halal Integrity– Receive periodical audit by the certification body

In details, the business must demonstrate compliance with Indonesia’s halal standards regarding materials and production processes. Here are the key requirements:

1. Materials Management
   • Approved Materials List: All materials used in halal product production must be on the BPJPH-approved list. New materials require prior approval from BPJPH before use.
   • Non-Critical Ingredients: For non-critical materials (those not directly affecting halal status), some flexibility is allowed, but thorough documentation and approval are still necessary.
2. Production Processes
   • Separate Production Lines: Facilities producing both halal and non-halal products must have completely separate production lines, with no shared equipment or storage.
   • Cleaning and Sanitation: All production equipment and facilities must be cleaned according to Islamic guidelines, especially if there is a risk of contamination from haram substances. This may include specific washing procedures for equipment that has been in contact with pork.
   • Monitoring and Auditing: Regular internal audits must be conducted to ensure compliance with halal standards. Any deviations must be addressed immediately, with corrective actions documented and reported.
3. Traceability and Documentation:
   • Traceability system: Businesses must establish robust traceability systems to track all materials and products throughout the supply chain, maintaining records of material origins, production processes, and distribution channels.
   • Comprehensive documentation: dossier for all aspects of the halal production process must be established, including material approvals, production records, and sanitation procedures. These documents should be readily available for inspection by BPJPH and Halal Inspection Bodies (LPH).
4. Packaging and labelling:
   • Mandatory Use of the Halal Label: All products with halal certification must feature the Indonesian halal label prominently on their packaging. Ensure there’s enough space for the label to stand out and not be overshadowed by other design elements.

Note: If you previously used the MUI (Indonesian Ulema Council) halal logo, you have until February 2, 2026, to switch to the new halal label. Any packaging printed after this date must use the new logo.

Indonesian Mutual Recognition Policy for Halal Certificates

The Indonesian Mutual Recognition Policy for Halal Certificates includes nine Local Halal Authorities (LHLNs) that have established a Mutual Recognition Agreement (MRA) with the Halal Product Assurance Agency (BPJPH). These authorities are:

1. Korea Muslim Federation (KMF)
2. Korean Halal Authority
3. Islamic Food and Nutrition Council of America (IFANCA)
4. Taiwan Halal Integrity Development Association
5. Central Islamic Council of Thailand
6. Halal Certification Center of Chile (Chilehalal)
7. Halal Conformity Services (New Zealand)
8. Federation of Islamic Associations of New Zealand (FIANZ)
9. New Zealand Islamic Development Trust Ltd.

In addition, there are numerous other LHLNs worldwide that have signed an MRA with BPJPH, facilitating the recognition and mutual acceptance of halal certificates, covering over 50 LHLNs globally. BPJPH is continuously working on expanding the MRA with other countries to further enhance the global recognition of halal standards.

GCC Halal Regulatory Framework

The Gulf Cooperation Council (GCC) countries region have also established robust halal certification systems for cosmetics.

Key Regulatory Bodies

• Saudi Arabia: Saudi Food and Drug Authority (SFDA)
• Qatar: Qatar Ministry of Public Health (MOPH)
• Bahrain: Bahrain Institute of Standards and Metrology
• UAE: Emirates Authority for Standardization and Metrology (ESMA); Ministry of industry and Advanced Technology
• Oman: Ministry of Commerce and Industry
• Kuwait: Public Authority for Food and Nutrition (PAFN)

GCC Unified Halal Standards

The GCC countries have adopted unified halal standards to harmonize certification processes across the region:

• GSO 2055-1:2015: General Requirements for Halal Food
• GSO 2055-4:2014: Requirements for Cosmetics and Personal Care

Other widely used standards:

• S 2055-1 – Emirates Authority for Standardization and Metrology (ESMA)
• OIC/SMIIC 1:2019 – Standards and Metrology Institute for Islamic Countries

While the GCC countries have made significant strides in harmonizing halal standards, some variations exist across the region:

• UAE: Requires the use of the national halal mark on certified products.
• Saudi Arabia: Has stringent requirements for halal raw materials and manufacturing processes.

General Certification Process in GCC countries

Halal Certification Compliance	Details
Requirements	– Company/business license details – Product name, product labelling, net weight, etc. – Confirming compliance with HACCP, ISO 9001, 22000 – Materials management and product processing – Halal product assurance/guarantee system document– Other supporting materials
Certification Validation	3 years (may differ depending on the specific country requirements)
Renewal Requirement	– 6 months before the expiration date – Copy of Halal Certificate –  Other supporting material
Post-certification	– Report Changes to Certification Data– Keep all records of complaints made known to the supplier relating to a product’s compliance with requirements– Ensure effective Halal Assurance management system– Receive an annual audit by the certification body

In details, the business must demonstrate compliance with relevant GCC’s halal standards regarding materials and production processes. Here are the key requirements:

1. Materials Management
   • Approved Materials List: All materials used in halal product production must follow the applicable local standards, for example in UAE:
     1.  All types of waters are allowed with the exceptions of (1) recycled (sewage) water, and (2) mutanajis water.
     2. All types of soils are allowed with the exceptions of those soils which are taken from graveyards, animal farms and dumping areas.
     3.  Animals and plants that meet the requirements of the Convention of International Trade in Endangered Species of Wild Fauna and Flora (CITES) shall not be used.
     4. GMOs or substances containing GMOs are allowed to use provided they do not contain human gene(s) or gene(s) obtained from prohibited animal(s) source(s), and / or prohibited animal(s) have not been used as a host.
     5. Nanomaterials are as such are forbidden unless their use is demonstrated to be safe beyond any doubt.
     6. Other restricted ingredients
2. Production Processes and Safety
   • Separate Production Lines: It is not allowed to share the non-halal manufacturing facilities at any stage of production of halal cosmetics.
   • Cleaning and Sanitation: All production equipment and facilities must be cleaned according to Islamic guidelines, especially if there is a risk of contamination from haram substances. This may include specific washing procedures for equipment that has been in contact with pork.
   • Safety: The evidence for safety shall be provided by either test reports or relevant documents. The halal cosmetics shall have the quality characteristics and / or the desired results as it claims.
   • Monitoring and Auditing: Regular internal audits must be conducted to ensure compliance with halal standards. Facility shall meet the requirements of the GMP guidelines of GSO ISO 22716.
3. Traceability and Documentation:
   • Traceability system: The halal cosmetic shall be distinctly traceable to the requirements of this standard at any stage of production and afterwards. The traceability can be based on a published standard or an appropriate approved procedure.
   • Comprehensive documentation: dossier for all aspects of the halal production process must be established, including material approvals, production records, and sanitation procedures. These documents should be readily available for inspection by BPJPH and Halal Inspection Bodies (LPH).
4. Packaging and labelling:
   • The term “Halal”: shall be used only in the case of compliance of all the requirements of this standard.
   • The shape of the packaging: shall comply with ethics of Islam and of local culture.
   • Packaging material: the material used for packaging in direct contact with the product shall comply with the applicable requirements

Challenges in Halal Cosmetics Certification

Manufacturers face several significant challenges when pursuing halal certification for cosmetics:

• Ingredient Sourcing: Finding halal-certified raw materials can be a complex process. Many cosmetic formulations use specialized ingredients that may not have clear halal certification, complicating the ability to guarantee compliance.
• Cross-Contamination Prevention: To maintain halal integrity, manufacturers must implement stringent protocols to prevent any contact with non-halal substances during production. This includes careful planning of production schedules and possibly even using separate equipment, which can increase operational costs.
• Regulatory Variations: Different countries have distinct halal standards and certification requirements, which can lead to confusion and complicate the certification process. Manufacturers must stay informed about these variations to ensure compliance in all target markets.

Benefits of Halal Certification

Despite the challenges, obtaining halal certification provides numerous advantages that can significantly enhance a brand’s market position:

• Market Access: Halal certification opens the door to the rapidly growing Muslim consumer market, which is estimated at around 1.8 billion people globally. This access can lead to substantial business growth, especially in regions with high demand for halal products.
• Consumer Trust: Certification fosters credibility and trust among consumers, particularly those who prioritize ethical and halal products. A brand recognized for its halal certification is likely to build stronger relationships with its customers, leading to increased loyalty and repeat business.
• Competitive Edge: In a crowded cosmetics market, halal certification allows brands to differentiate themselves. By appealing not only to Muslim consumers but also to a broader demographic interested in sustainable and ethical products, companies can enhance their market presence and attract diverse customer segments.

Future Trends in Halal Cosmetics

One of the most significant developments is the increasing use of blockchain technology to enhance traceability within the halal supply chain. This innovation not only ensures transparency but also builds consumer trust by allowing customers to verify the halal status of products at every stage, from sourcing ingredients to final production.

• Clean Beauty Convergence
  There’s a growing overlap between halal cosmetics and the organic and natural beauty segments. As consumers become more health-conscious, they are seeking products that are not only halal-certified but also free from harmful chemicals and sustainably sourced. This convergence is creating a robust market for clean beauty solutions.
• Personalization and Men’s Grooming
  Personalization is gaining traction, with brands developing halal-certified skincare and cosmetic solutions tailored to individual needs. At the same time, the men’s grooming market is expanding rapidly, with more halal-certified options becoming available for male consumers. This shift reflects a broader acceptance of halal principles among diverse demographics.
• Sustainable Practices
  Sustainability is becoming increasingly important in the halal cosmetics sector. Brands are focusing on eco-friendly packaging solutions, minimizing waste, and utilizing recyclable or biodegradable materials. This aligns with the values of health-conscious and environmentally aware consumers.
• Global Brand Expansion
  The halal cosmetics market is witnessing an influx of international brands recognizing its potential. This global expansion will enhance competition and innovation, providing consumers with a wider variety of halal-certified products to choose from.

Conclusion

The halal cosmetics market presents a significant opportunity for businesses willing to invest in understanding and meeting the unique requirements of Muslim consumers. As regulations in key markets like Indonesia and the GCC region continue to evolve, staying informed and proactive in obtaining halal certification will be crucial for success.

Call to Action

Ready to explore halal certification for your cosmetics products? Knudsen&CRC offers expert guidance and support throughout the certification process, helping you navigate regulatory requirements in Indonesia, GCC, and beyond. Contact us today to learn how we can assist you in tapping into the lucrative halal cosmetics market while ensuring full compliance with Islamic principles and local regulations.