The Booming $5 Billion Halal Beauty Market in Indonesia

The food and beauty industries are increasingly targeting Indonesia’s growing halal market, recognizing its vast potential. As the world's largest halal market, Indonesia offers not only a strong domestic consumer base but also serves as a gateway to other halal markets in Southeast Asia and the Middle East.

On July 7, Cosmax, a leading cosmetics R&D and manufacturing (ODM) company, announced plans to enter the Indonesian halal fragrance market. They have established a dedicated “Fragrance Lab” within their R&I (Research and Innovation) Center in Jakarta to develop halal-certified perfumes specifically for this expanding market.

Cosmax Expands Operations in Jakarta

Cosmax has been active in Indonesia since 2013, producing a variety of cosmetic products, including color cosmetics, at its Jakarta factory. Recently, on July 5, they held a conference at a Jakarta hotel to introduce eight newly developed fragrance kits, tailored to the preferences of the Indonesian Millennial and Gen Z consumers. Cosmax plans to officially launch these products as early as the third quarter of this year.

Halal Certification in Cosmetics

Halal certification is essential in Indonesia, where 87% of the population of approximately 270 million identifies as Muslim. This certification, based on Islamic law, prohibits ingredients like alcohol or pork derivatives in food, cosmetics, and pharmaceuticals. For example, cosmetics containing collagen, a common ingredient, cannot receive halal certification.

Starting from October of this year, Indonesia will mandate halal certification labels for all imported foods, with similar requirements for cosmetics and pharmaceuticals coming into effect by October 2026. As the world’s largest Muslim-majority country, Indonesia’s halal market is experiencing rapid growth, especially in cosmetics.

High Growth Potential in the Halal Beauty Market

Indonesia’s halal cosmetics market, valued at $4.19 billion (approx. 5.5 trillion KRW) as of 2020, is projected to grow at an annual rate of 12.7% through 2025, according to Bank Indonesia. This rapid expansion highlights Indonesia's significant potential as a leading player in the global halal beauty market.

With Indonesia as a strategic base, companies like Cosmax are positioning themselves to capture not only the Indonesian market but also other lucrative halal markets across Southeast Asia and the Middle East.