Growing Muslim Population
Halal is an Arabic word meaning “lawful or permitted,” with halal food being that which adheres to Islamic law. The slaughtering of animals or poultry needs to be done in a specific way, and certain animal byproducts, along with alcoholic beverages—such as pigs, beer and wine, respectively—are restricted. Halal beauty refers to products manufactured, produced and composed of ingredients that are “permissible” under Islamic law. Similar to the certification and labeling of kosher and vegan products, halal products are governed. Islamic Food and Nutrition Council of America (IFANCA), American Halal Foundation, ISWA Halal and U.S. Halal Certification are a handful of U.S. certifying agencies.
According to Pew Research1, in 2015 Muslims made up 24.1% of the global population. Today, the number of Muslims is expected to increase by 70% from 1.8 billion in 2015 to nearly 3 billion in 2060, making up 31.1% of world’s population. It is estimated that only 0.2% of the world’s Muslims live in North America. In the United States, Muslims are projected to double from 0.9% of the population in 2010 to 2.1% by 2050.2 Although often associated with the Middle East-North Africa region, a large Muslim population lives in the Asia-Pacific region. With this large and growing Muslim population, Islam is the world’s second-largest religion after Christianity.
Generation M: Young Muslims Changing the World, by author Shelina Janmohameda, launched in November 2016, and explores the influential cultural phenomenon of young Muslims who believe their identity encompasses both faith and modernity. Also referred to as “Muslim Millennials” and “Mipsters (Muslim Hipsters)” this young demographic is changing stereotypes, and their purchasing power will be influential as they shape and drive the future of the Muslim population. Last year, the Muslim Lifestyle Expo b, “U.K.’s first multi-sector events platform that captured the best of global Muslim lifestyle,” was launched. After a successful event, this year the Muslim Lifestyle Expo was held on Oct. 28–29, 2017, and showcased businesses aimed at this burgeoning consumer market including modest fashion shows, live food demos by top chefs and educational seminars.
With the growing population of Muslims, halal food, beverage and beauty are emerging and have considerable potential for fragrance and flavor suppliers and consumer goods manufacturers. According to a Jan. 24, 2017, Quartz article,3 the global Islamic market was worth over $3.6 trillion in 2013 with the market projected to be worth over $5 trillion by 2020.
Halal Food & Beverage
The global halal food market is projected to be worth $1.6 trillion by 2018.4 This sector is also estimated to be growing faster than the general food sector, and is predicted to make up 17.4% of the world food market by 2018. According to Technavio,5 the halal food market in the United States is expected to grow at a CAGR of 3.48% during the 2017–2021 period. The global halal meat, poultry and seafood market in the United States accounted for about $15.37 billion in 2016, while the halal food market retail segment in the United States accounted for about $14.50 billion in 2016. Nielsen research estimates that U.S. grocery and convenience stores sales reached $1.9 billion in the 12 months through August 2016, a 15% increase from 2012. From U.S. restaurants to supermarkets, halal sales are projected at $20 billion this year, up by one-third since 2010, according to the Islamic Food and Nutrition Council of America.6
After noticing the demand for Halal food within the Muslim cab driver population, The Halal Guysc opened its first food cart on 53rd and 6th Avenue in New York City in 1990. Today, The Halal Guys are a global brand and have more than 350 restaurants currently in development world-wide. In August, the brand developed a mobile app to simplify online ordering and shorten lines in the restaurants.
In Birmingham, U.K., Ali Imdad, a 2013 Great British Bake Off contestant and business partner,Mohammed Vakas, own and operate the Artisan dessert bar. Catering to Generation M, in addition to dessert, Artisan serves mocktails such as Raspberry Spice (with a hint of almond and cinnamon), Banana Coladas and Mint Mojitosd.
Haloodiese (“halal” and “foodies”) is a U.K. brand of packaged halal meats that “produce products to meet the convenience needs of millennial Muslims because we understand their needs.” Peri Peri Chicken Mini Split Sticks and Battered Chicken Filletsare recent new products. In July 2017, Haloodies introduced Halal Food To Go, a new range of high quality chargrilled chicken protein snacks currently offered in Plain’N’Simple and Hot’N’Spicy flavors. To expand the brand, Haloodies is targeting the Middle East as its first-ever export market. The brand has been negotiating with major United Arab Emirates (UAE) retailers and hopes to export its chicken snacks by September 2017.
Khalils Luxury Halal Marshmallows,f a U.K.-based brand launched a Kickstarter campaign in January 2016 to offer luxury handmade halal-certified marshmallows. The marshmallows are formulated with 100% natural colors and flavors, and contain no animal or dairy byproducts. The marshmallows are offered in 10 flavors: Arabic Coffee, Banana & Walnut, Egyptian Dates, Lemon Drizzle, Mango, Moroccan Mint & Chocolate, Pistachio & Honey, Simply Vanilla, Strawberry DreamandToasted Coconut.
The demand for the global market for halal-certified products has led to the exploration of camels as a substitute for pork gelatin. The UAE University team, led by Sajid Maqsood of the university’s department of food science research, suggests that there is potential for camel skin to be used as an alternative raw material with further research needed.7
According to Grand View Research,8 the global halal cosmetics market size was valued at U.S. $16.32 billion in 2015, and is expected to drive continuous and steady growth of the market by 2025. Technavio reports that the halal cosmetics market is expected to rise to $52.39 billion by 2021, up from $26.47 billion in 2016.9 The APAC region is expected to create the largest revenue and maximum incremental growth throughout the period between 2017–2021 with a CAGR of nearly 15%. The personal care segment is predicted to lead the halal market globally with 97.18% market share in 2021, while the retail segment is anticipated to draw a CAGR of 14.41% by the end of the forecast period.
With the increased demand for halal products, companies are seeking halal certification. Majelis Ulama Indonesia (MUI) is considered one of the top three worldwide halal bodies, which is reportedly recognized by about 40 countries across the globe. There are a variety of brands that have achieved halal certification such as Korean beauty player Cosmax, Malaysian skin care Clara International Beauty and U.K. fragrance supplier Seven Scent while BASF announced that 145 of its personal care products comply with halal standards.
Hair Care To Meet Muslim Consumers’ Needs
In addition to products that use halal ingredients, there is a growing demand for products that address Muslim consumers’ hair care needs due to the use of a hijab (headscarf). In January 2017, Le’Jemalik Salon and Boutique opened in New York’s Bay Ridge Brooklyn neighborhood. Founded by Huda Quhshi, the women-only salon was designed as a space for Muslim women to receive beauty services in a comfortable environment. In Malaysia, Unilever introduced the Sunsilk Hijab Rechargeg hair care line co-created with natural hair expert Jamal Hammed in April 2017. The range is formulated with natural ingredients and uses a “fragrance release pearls technology that delivers up to 48 hours of freshness and fragrance.” It is offered in three variants: Hijab Refresh, Lively Strong Hairfall and Anti Dandruff. The Hijab Refresh is enhanced with fig, “known as the heavenly fruit amongst the Muslims” and is formulated to cleanse sweaty scalps, grease, residue and oily hair while the Lively Strong Hairfall Solution contains ginseng root extract to restore nutrients and strengthen the hair to reduce hair loss. The Anti Dandruff uses the essence of citrus fruits as well as ZPT to remove and prevent flakes.
In Malaysia, Safi Shayla Hair Spa is a local halal brand “which consists of a unique and comprehensive range of skincare, personal care and toiletry products developed exclusively to meet the needs of modern Muslim women and men.” Itch-Control Shampoo and Shayla Oil Control Shampoo are new products both formulated with Habbatus Sauda (black cumin), menthol and a scent that lasts for up to 24 hours. The Itch-Control contains argan oil while the Oil Controlcontains citrus to clean pores, remove excess oil and dirt.
Halal Skin Care
In August 2017 in Indonesia, Unilever launched the PurelineHijab Fresh Hand & Body Lotion line with an “Instant Cooling Burst” technology to provide a solution to the specific needs of the Muslim population, targeted at the millennial Muslims. The products are focused on whitening and available in four SKUs: Cool & Fresh, Extra Moisture, Healthy & Bright Hand, and Nourish & Protect. Nurish Organiq is “Malaysia’s no. 1 halal brand infused with 100% natural and organic ingredients.” Nurish Organiq Brightening Face Essence and Nurish Organiq Brightening Night Cream are new products that claim to have four times the whitening action and are formulated with frangipani, hibiscus, bilberry and cucumber.
Halal beauty is a hot topic and this year—the Cosmetics Business Regulatory Summit 2017, held from October 17–18, 2017, in Barcelona, featured a “Trend spotting: Halal beauty” presentation by Salma Chaudhry, the founder of The Halal Cosmetics Company.
Dubai-based beauty line Luscious Cosmetics, a vegan cruelty-free color cosmetics brand, sells its products in Sephora stores in Hong Kong, Malaysia, the Philippines, Singapore, and Pakistan. In August 2017, it entered the U.S. market and is available online and in select stores nationwide, targeting women of color. The newest product is a line of Heartbreaker Matte Lipsticks offered in 18 different shades.
Australian brand Inika Organics is self-described as the “healthiest makeup brand in the world,” and has multiple certifications including organic, vegan, cruelty-free and halal. The brand launched in the United States in April 2017. The Certified Organic Lip Glaze range of seven colors has been reformulated, with Long Lash Vegan Mascara is the newest product.
Orly’s nail care brand debuted a porous Breathable Treatment + Color collection, which is formulated similarly to contact lens technology and allows oxygen and hydration to pass through the polish. Excited about this technology, MuslimGirl.com and Orly collaborated on the limited edition #HalalPaint collectionh, which are made out of 100% halal ingredients and featured six water-permeable nail polishes with tailored names such as Wallah Bro Wipe Out and Haram-Bae.
U.S. Halal Opportunities
The rising young Muslim population coupled with their spending power is creating a demand for the development of halal food, beverage and beauty products. Additionally, the increase in organic and vegan products driven by the health and wellness trend creates further interest in halal products for non-Muslim consumers because of their similar ethics and high-quality standards.
According Technavio research,9 in the APAC region last year non-Muslim consumers accounted for approximately 31% of halal cosmetics purchases and the figure is expected to rise. Shiseido’s Za-cosmetics brand in Malaysia obtained a halal certification in Vietnam in 2012 and sells 28 halal certified products. According to Mintel,10 0.93% of beauty and personal care products launched in 2016 in APAC carried a halal claim, compared to 0.35% of global product launches in 2016. Mintel reported that global halal claims for facial skincare products from January 2013 to November 2015 have steadily increased. In 2013, 0.2% of facial skin care products contained a halal claim, compared to 0.3% in 2014 and 0.5% in 2015.
There are a few large consumer packaged food manufacturers who are halal certified and offer halal products in Muslim countries, but they do not necessarily carry these products in the United States. For example, according to a Bloomberg September 14, 2016, article,6 Nestlé has 151 halal factories, from Malaysia to Pakistan, and distributes hundreds of certified products across the world—except for America. Mondelez International Inc. also services predominantly Muslim countries like Indonesia and Saudi Arabia, but only sells a handful of its halal products in the United States. In addition, U.S. retailers like Walmart and Kroger offer halal products where there is local demand. Crescent Foods, the nations’ leading provider of Premium Halal Chicken, is offered in 77 U.S. Walmart locations in Delaware, Illinois, Indiana, Iowa, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Texas and Wisconsin. Crescent Foods recently launched a range of All Natural Premium Grass-Fed, Grass-Finished Angus Beef.i
Currently the U.S. halal food, beverage and beauty market is a small but an expanding niche market, ripe for growth opportunities for fragrance and flavor suppliers and consumer goods manufacturers. The opportunity for U.S. suppliers to produce Muslim-friendly products is more about the clean ingredients used and less about the religious beliefs, particularly for beauty products. The Muslim population is expected to grow more than twice as fast as the overall world population between 2015–2060 and opportunities for companies to enter this market abound. Expect to see the demand for halal and Muslim-friendly food, beverage and beauty products to escalate and create opportunities for new product innovations.