Talent Cosmetic, which currently operates six stores in Seoul, Korea, sells a range of beauty products from matte lipsticks and BB creams to cleansing oils and sheet masks. In December 2014, it became the first Korean makeup company to obtain halal certification from the Malaysian government. The certification — issued by the Department of Islamic Development Malaysia (also known as Jakim) — identifies products that have been produced in ways approved by Islamic law. Out of the company’s 550 cosmetic products, 147 have received certification.

But why would a cosmetics manufacturer like Talent Cosmetic — largely known for using popular K-pop bands to advertise its makeup and skincare products — be interested in attaining halal certification when Korea’s Muslim population is minuscule?

“The latest authorisation from Malaysia has established the bridgehead for us to further expand our business into the Islamic market,” says Kang Sung-Jin, chief executive officer of Talent Cosmetic, at a press conference in Seoul. Clearly, the Korean businessman is now eyeing up the potential in Asian markets further south.

According to the CIA World Factbook, over 60 percent of the population in Malaysia are Muslims, while Indonesia, at 88 percent, has the largest Muslim population worldwide. This demography arguably makes South East Asia the most lucrative regional market for halal cosmetics in the world. “Large Muslim populations based in Asia Pacific and increased consumer disposable incomes in most [of these] countries, such as Malaysia, Indonesia and India, has led to high growth in the halal cosmetics market,” says Vijay Sarathi, an analyst at market research firm Technavio.

This, seen in combination with the affluent Middle East consumer market, makes the global halal beauty category an increasingly attractive opportunity. Sayd Farook, global head of Islamic capital markets at Thomson Reuters writes in his report, ‘The State of the Global Islamic Economy 2015,’ that while global Muslim spending on cosmetics was $46 billion in 2013 — 6.78 percent of global expenditure — it is expected to increase to $73 billion by 2019 and will make up over 8.2 percent of global expenditure. Of this, a significant share goes to the halal segment. According to Technavio, the global halal cosmetics market is valued at $23.4 billion in 2015 and is expected to reach $45 billion by 2020, growing at a CAGR of 14.3 percent.

Many firms in halal cosmetics see an opportunity that can’t be missed. But in order to stand out in a growing market niche, cosmetic suppliers and manufacturers need to do more than just gain the confidence of consumers by meeting the complex nature of halal compliance. To succeed, multinationals need to develop a distinct brand identity and clear marketing messages, in addition to just certifying products as halal.

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