As the global demand for halal and herbal cosmetics surges, Bangladesh is poised to capitalise on this growing trend.

With a large Muslim population and a burgeoning beauty industry, the country has the potential to become a major player in the international market, said experts and industry insiders, adding that challenges such as a lack of standardised certification and limited infrastructure, however, hinder its full potential.

They expressed their belief that addressing issues related to certification processes, investing in infrastructure, and enhancing consumer and manufacturer education is crucial for the industry’s growth and success in both local and international markets.

The global halal cosmetics market was valued at $42.39 billion in 2023, projected to reach $47.76 billion in 2024 and $115.03 billion by 2032. The Asia-Pacific region dominated the halal cosmetics market with a 64.87% share in 2023, according to Fortune Business Insights.

According to Statista, in 2022, the total revenue of the halal cosmetics market in the Asia-Pacific region reached $18.43 billion. Indonesia generated around $5.67 billion, the highest revenue in the region, followed by Malaysia ($3.64 billion), India ($2.8 billion), Bangladesh ($2.14 billion), and China ($1.97 billion).

In Bangladesh, the halal personal care market, particularly for products like hair colour, shampoo, lipstick, nail polish, beauty talc, face wash, lotions, perfume, and eye care products, is showing moderate growth.

Industry insiders say that growing awareness and acceptance of halal cosmetics among consumers have increased demand for halal-certified skincare products. Consumers in developing countries such as Saudi Arabia, Iran, India, Indonesia, and Malaysia are increasingly investing in skincare and makeup products.

Bangladesh’s potential as a leader in halal cosmetics

Speaking to the Daily Sun, Prof Syed Ahsanul Alam, chairman of the National Bureau of Economic Research Bangladesh (NBER), highlighted the increasing global demand for halal cosmetics among both Muslim and non-Muslim consumers who value ethical and hygienic products.

"Bangladesh could position itself as a leading player in the halal cosmetics market, both locally and globally. In a country where Muslims make up about 90% of the population, the demand for halal-certified personal care products like shampoos, nail polish, lipsticks, and lotions is steadily rising," he noted.

Prof Ahsanul Alam, who also teaches in the Department of Marketing at the University of Chittagong, emphasised that despite challenges, the market holds great potential for Bangladesh.

“Improving certification processes, investing in infrastructure, educating consumers and manufacturers, strengthening the supply chain, implementing robust monitoring systems, expanding market awareness, investing in research and development (R&D), and enhancing international collaboration are the main challenges for us,” he added.

Halal herbal hair colours, which use safe, natural ingredients instead of carcinogenic chemicals, are also gaining popularity.

The rising popularity of halal products

Wahida Parvin Ishita, a student at Jagannath University, said she seeks halal personal beauty items, particularly perfumes, as they are free from harmful or haram materials prohibited by Islamic law.

"Although many people are unaware of halal cosmetics, some consumers, like myself, specifically look for halal perfumes. We also prioritise quality cosmetics as counterfeit skincare and beauty products flood the market," she explained.

Ishita expressed concern over counterfeit and substandard products, as some of her friends have suffered from skin issues after using such items. Many cosmetics are sold online, particularly on social media and at various shops, without BSTI certification. She emphasised that product quality should be ensured for consumer safety.

Mustafa Kamal, the owner of Loyalty International, a wholesale and retail business, explained that halal cosmetics are highly demanded among Muslims.

“I sell a lot of cosmetics items. However, not all cosmetics are halal; certain products, like alcohol-based perfumes and soaps containing pig-derived ingredients, are exceptions,” he noted.

Mohammad Ishaqul Hossain Sweet, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), believes the halal cosmetics sector has huge potential, though it hasn't developed adequately due to insufficient government support.

“Bangladesh can now manufacture quality cosmetics. Therefore, policy support and improved ease of doing business are essential. Halal cosmetics have about a 44% demand worldwide. This sector could play a significant economic role like Bangladesh’s readymade garments (RMG),” he added.

Need for comprehensive halal certification

MS Siddiqui, Vice President of the International Business Forum of Bangladesh (IBFB), noted that globally, halal food and cosmetics appeal to both Muslims and non-Muslims.

“Halal cosmetics do not contain animal fat or alcohol, which attracts consumers from various religions. Bangladesh has not yet taken full advantage of this emerging sector,” he explained, highlighting the export potential.

“There is a need for halal certification from a competent regulator in Bangladesh, but currently, no regulatory organisation has the equipment and qualified manpower to issue globally acceptable certificates,” he noted.

He urged the government to support domestic industry development to reduce import dependency.

BSTI establishes international standard lab for halal certification

Speaking to the Daily Sun, SM Abu Sayed, deputy director (Halal Certification) at BSTI, said that the BSTI is ready to provide internationally recognised certification, enabling exporters to reach global markets and increase export volumes.

“So far, no cosmetics companies have applied for halal certification, except for Remark HB Limited, which applied in October for both certification and training,” he said.

He added that many companies are unaware of compliance requirements. “BSTI has established a national halal laboratory in a new building with Tk500 crore. The lab will provide halal certification for various industries, including food and cosmetics.”

“We have imported equipment from the EU, Germany, and other countries. There is significant potential for halal products, particularly in Muslim-majority markets worldwide,” he mentioned.

Growing demand for herbal beauty products

Demand for organic, herbal, and clean-label beauty products is also rising, especially in urban areas.

The global herbal skincare products market was valued at $81.02 billion in 2023 and is expected to grow from $85.23 billion in 2024 to $137.43 billion by 2032, with a compound annual growth rate (CAGR) of 6.15% during this period, according to Market Research Future.

Bangladesh is witnessing a surge in demand for eco-friendly, locally sourced natural cosmetics. The country’s natural cosmetics market is expected to generate $181.30 million in revenue in 2024, with an annual growth rate of 3.21% through 2029, according to Statista.

Abdus Sattar, chief operating officer (COO) of Mumtaj Herbal Products, said the company has supplied herbal beauty products for 30 years, producing 100% herbal items as well as some non-harmful chemical products, all approved by BSTI.

“We also obtained halal certification from the Islamic Foundation and are planning to get certified by BSTI soon,” he added.

Sattar urged the government to take action against smuggling and counterfeit products to protect the local industry.

He emphasised the positive shift among Bangladeshi consumers who are now opting for high-quality, halal, and herbal products, highlighting the sector’s potential at home and abroad.

He also revealed plans to directly export their products due to growing international demand, as exports are currently managed by third-party agents.