Market for Halal Cosmetic in India

Cosmetics business in India is flourishing with higher speed among rural and urban population. India’s per capita consumption of cosmetic and toiletries products was US$1.5 in the year 2008 which would be expected to grow at the rate of 15 to 20 percent due to increase in per capita income.  Consistent increase in per capita income witness the prosperity of country, which results the growing number of middle income population and holding of higher purchasing power. Swift of larger middle income group ultimately widens the consumer market in India. It becomes now the lucrative market for investors in the business of durable goods, processed food & brewages, real estates, financing, textile and travel etc. Competition between the companies has given greater choices to consumers among new style brands products and services in Indian market.

The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian players like Lakme and Ponds has seen a lot of foreign entrants to the market within the last decade.  The value of output of cosmetics industry (excluding toiletries) is estimated at Rs 24 billion in the organized sector. The informal sector produces about one-third by value and much higher by volume. The overall market is estimated to be of the order of over Rs 36 billion. It has witnessed a growth rate of 10 to 12% annually. Despite the downward trend in the demand of a large number of consumer products, the cosmetic industry continues to grow at a high rate basically because of the entry of new players (and new products) and globally known brands. The up-end market is expected to grow at the rate of 12% and might pick up a rate of 15% from the present market value level of Rs 24 bn. According to ASSOCHAM report, 20 percent population believe to use the well known branded products like Uniliver, proctor & gamble, Godrej, Dabur etc. Rest of 80 bilion population spent on low cost cosmetics. Marketing of cosmetic or any not necessitated products are very price sensitive in India. To maintain the expenditure within the income limit, people prefer to minimize the usage of luxury commodities.

Indian cosmetic industry would expand manifold in coming years but the Muslims are highly untapped consumer community to benefit the products due to religious constraint in suspicion of mixing non Halal ingredients. Indian Muslims have the fifteen percent share in total consumer market according to their population but keeping the constraint of their economic situation, it is assumed only 10 percent share of Muslim consumers have in overall market. Most of Muslim households have the middle level expenditure back ground. Eight percent Muslim population only has the higher purchasing power parity while majority comes under higher middle income group.

Teenager is the target of all brand-builders although a major user segment is the adult women starting from 20. Muslim, being the younger segment among Indian population, are more likely to be attracted for Halal endorsed cosmetics products, which is an emerging sector worldwide with enormous market potential in view of the fact that about 1.8 billion of the world’s population are Muslims. Comparative to men, Muslim women are keener to use the cosmetic beauty products. Islam prohibits the artificial beauty measures for men and allows it for women only. Muslim youth women’ population share in India is greater than overall Muslim population especially in urban areas. Age group break up of Muslim women can be better visualized by the assistance of given figure which clearly indicates the greater population share of Muslim women in India:

Percentage Age group Women Population in India
  Age Group All Muslim
Total 0-19 44.39 51.29
Total 20-39 31.58 29.34
Total 40-59 15.95 13.22
Total 60+ 8.08 6.16
Rural 0-19 45.64 52.26
Rural 20-39 30.42 28.38
Rural 40-59 15.64 13.07
Rural 60+ 8.30 6.30
Urban 0-19 41.08 49.50
Urban 20-39 34.64 31.10
Urban 40-59 16.79 13.50
Urban 60+ 7.48 5.90

More than 19.6 Million Muslim women population between 20 to 40 years could be a huge market to introduce cosmetics products. Indian Muslim women are religiously conscience towards main stream cosmetic products due to fear of alcohol and pig residues used during the preparation. Use of cosmetics and beauty enhance products in front of husband and other relatives are permissible according to Islamic laws if not exposed publicly to control the adultery and filthy in society. According to estimation, current demand of Halal certified women beauty product in India are 4510 Million which could be doubled as 9130 Million during the year 2019-20 as mentioned in given tables:

Future Demand to Halal Endorsed Women Cosmetics Products in India
Year  Rs. Million
2009-10 4510
2010-11 4920
2011-12 5310
2012-13 5682
2013-14 6060
2014-15 6506
2019-20 9130

Apart from domestic market, India is also major hub for export of beauty products to UAE, Malaysia, Saudi Arabia, Bangladesh and Turkey which constitutes the fifty percent market of total export from India.  During the year 2009-10, India’s export of beauty and make up products are 5148.64 million INR and UAE is the leading importing country imported 1975.77 million INR.

In the name of Halal, no promoter has introduced products so far in Indian market. However, cosmetics and beauty products of Dabur, Himalaya, Shanaz Herbals and other pure vegetarians promoters are by default Halal to use as these are only vegetarian products not used any type of meat ingredient and alcohol. Well established brands in cosmetic fraternity Shanaz Herbal and Himalaya drugs are owned by Muslim entrepreneur Shanaz Hussain and  Meraj Manal respectively. Further, Indian consumers are now wooing to Ayuervedic beauty products like cream, shampoo, powders, lipsticks etc.

All above discussion indicates to huge potential Halal certified cosmetic markets in India. India is a very price sensitive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for them. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time, many cosmetic and toiletries companies launched their products in smaller pack sizes to make them more affordable.


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