The Rise of Halal Herbal Cosmetics in the Global Market

As global demand for halal herbal cosmetics accelerates, Bangladesh is on the cusp of becoming a significant player in this rapidly growing market. With a majority Muslim population, a thriving beauty sector, and increased consumer awareness of ethical, halal-certified, and natural products, Bangladesh possesses a unique advantage. However, challenges such as limited infrastructure, certification issues, and counterfeit products remain hurdles to overcome. Experts believe that by addressing these obstacles, Bangladesh could capture a sizeable share of the international market and establish itself as a global leader in halal herbal cosmetics.

The Global Demand for Herbal Cosmetics

The halal and herbal beauty markets have gained substantial traction worldwide. Consumers, both Muslim and non-Muslim, are gravitating toward products that reflect their ethical and health-conscious values. Globally, the halal cosmetics market was valued at approximately $42.39 billion in 2023 and is projected to grow to $47.76 billion in 2024 and a staggering $115.03 billion by 2032. This growth is particularly prominent in the Asia-Pacific region, which held a 64.87% market share in 2023, according to data from Fortune Business Insights.

In the Asia-Pacific, countries like Indonesia, Malaysia, and India are major consumers of halal cosmetics, generating billions in revenue. Bangladesh, with a revenue of $2.14 billion in 2022, is on track to make substantial gains as awareness and demand for halal herbal cosmetics continue to rise among its population.

Bangladesh’s Potential

With a Muslim-majority population of over 150 million people, Bangladesh is naturally inclined toward halal products. Professor Syed Ahsanul Alam, chairman of the National Bureau of Economic Research in Bangladesh, believes that halal herbal cosmetics present a strategic opportunity for the country. He explains, “Bangladesh has the potential to become a leading exporter of halal herbal cosmetics by addressing certification processes, investing in infrastructure, and enhancing consumer education.”

Experts agree that Bangladesh’s demographic and cultural factors position it well to cater to the rising demand for halal-certified personal care products such as shampoos, lotions, lipsticks, and perfumes. However, they stress that to achieve this, Bangladesh must implement standardized certification processes and invest in modern production facilities to meet international standards.

Popular Halal Herbal Products

In Bangladesh, halal-certified beauty products have become popular among consumers seeking ethical and safe alternatives. Products like halal herbal hair colors, which use natural ingredients free from harmful chemicals, are gaining traction. The trend extends to skincare and personal care items such as lip balms, nail polishes, and perfumes. These products appeal not only to Muslim consumers but also to a growing base of non-Muslim consumers looking for cruelty-free, sustainable, and ethically-produced cosmetics.

Wahida Parvin, a university student in Dhaka, illustrates this trend: “I prefer halal and herbal products because they align with my values and are free from harmful chemicals. Many of my friends are also switching to halal products as they become more aware of the benefits.”

Challenges in Infrastructure

Despite the increasing demand for halal herbal cosmetics in Bangladesh, the country faces challenges in establishing a comprehensive halal certification framework. Certification remains fragmented, and there is a lack of standardized processes to verify halal and herbal claims on products. MS Siddiqui, Vice President of the International Business Forum of Bangladesh, explains, “Currently, there is no regulatory organization with the necessary equipment and manpower to issue globally accepted halal certificates.”

Without credible certification, it is challenging for Bangladeshi brands to gain consumer trust and access international markets. While BSTI (Bangladesh Standards and Testing Institution) has recently set up a national halal laboratory with significant investment, only a few companies, such as Remark HB Limited, have applied for certification. This suggests a gap in awareness among manufacturers about the certification process and its potential benefits for international export.

To address these challenges, the government and industry bodies need to collaborate to create a regulatory environment that promotes halal certification and ensures product quality. An established certification body would not only aid in local consumer confidence but also improve the global competitiveness of Bangladeshi products.

The Demand for Herbal Beauty

A major driver of the halal beauty trend is the shift toward natural, organic, and herbal ingredients. Consumers are increasingly cautious about synthetic ingredients, parabens, and harsh chemicals often found in traditional cosmetics. This trend is particularly prominent in the skincare sector, where herbal ingredients like turmeric, aloe vera, neem, and lavender are favored for their healing and nourishing properties.

The global herbal skincare market, valued at $81.02 billion in 2023, is expected to grow to $137.43 billion by 2032, with a compound annual growth rate of 6.15%. In Bangladesh, companies like Mumtaj Herbal Products have embraced this trend, producing a range of herbal beauty products. Abdus Sattar, COO of Mumtaj Herbal, shares that his company has supplied herbal beauty products for over 30 years and has secured halal certification from the Islamic Foundation. The company plans to obtain BSTI certification soon to enhance its market presence and expand internationally.

Consumer Awareness

Bangladeshi consumers are becoming increasingly aware of the impact of their purchasing choices. Many prefer halal herbal cosmetics because these products align with their ethical and religious values. This trend is especially notable among younger generations, who prioritize sustainability, transparency, and health.

With the rise of social media and e-commerce, consumers are more informed than ever about the origins and contents of the products they buy. Mustafa Kamal, owner of Loyalty International, a wholesale and retail business, observes, “The demand for halal-certified cosmetics is high, especially among Muslim consumers who want assurance that products are free from prohibited ingredients like alcohol and animal fats.”

Government Role in Industry Growth

Experts suggest that the Bangladeshi government could play a vital role in boosting the halal herbal cosmetics industry by providing policy support and easing regulatory hurdles. Mohammad Ishaqul Hossain Sweet, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), emphasizes the need for government intervention. “Bangladesh has the potential to be a leader in halal cosmetics if the government provides adequate support and facilitates ease of doing business,” he states.

One area where the government could make an immediate impact is through anti-counterfeit measures. Counterfeit cosmetics flood the market, undermining consumer trust and posing health risks. By enforcing strict quality control measures and supporting local businesses in adhering to halal and safety standards, the government can help the industry flourish.

Halal Herbal Cosmetics

Bangladesh’s entry into the global halal cosmetics market could mirror the success of its ready-made garment (RMG) sector, which is a significant contributor to the country’s economy. The halal beauty sector has similar potential due to the growing worldwide demand for halal-certified and herbal products. According to industry analysts, halal cosmetics hold a 44% demand share worldwide, a statistic that underscores the opportunity for Bangladesh.

Investing in research and development (R&D) is another critical factor. As consumer preferences evolve, manufacturers must innovate to stay competitive. Partnerships with global brands or collaborations with research institutions could help Bangladeshi companies develop unique, high-quality products that cater to the halal and herbal beauty segments.

The Importance of Education

For Bangladesh to truly unlock its potential in the halal herbal cosmetics market, it must invest in education for both consumers and manufacturers. Awareness campaigns can inform consumers about the benefits of halal and herbal products, while training programs for manufacturers can help improve product quality and regulatory compliance.

BSTI, with its newly established halal laboratory, aims to support this effort by offering training sessions to manufacturers. SM Abu Sayed, Deputy Director of Halal Certification at BSTI, confirms that his institution is ready to assist companies in achieving halal certification, which could enable Bangladeshi brands to access new markets and increase their export volumes.

Bangladesh’s Halal Herbal Industry

With the right infrastructure, Bangladesh’s halal herbal cosmetics sector could significantly boost the economy. The demand for halal-certified products is not limited to Muslim-majority countries; there is growing interest among non-Muslim consumers who seek ethical and cruelty-free beauty solutions.

By investing in infrastructure, ensuring reliable certification processes, and focusing on high-quality, ethically produced cosmetics, Bangladesh can create a thriving industry with far-reaching economic impact. This sector has the potential to become a substantial economic driver, much like Bangladesh’s renowned RMG industry.

The Halal Herbal Cosmetics Opportunity

The path for Bangladesh to lead in halal herbal cosmetics is filled with both potential and challenges. With its favorable demographics, existing demand, and an increasing awareness of natural and ethical beauty products, Bangladesh can carve out a strong position in this market. However, this success hinges on resolving issues related to certification, policy support, and combating counterfeit products.

As consumer preferences shift toward clean, natural, and halal-certified cosmetics, Bangladesh has the chance to capture a significant share of this growing industry. With support from the government, a focus on education, and enhanced international partnerships, the halal herbal cosmetics industry in Bangladesh could become a global benchmark for ethical and sustainable beauty.