Niche markets are small but profitable segments of the market which usually focus on fulfilling the wants and needs of consumers that mainstream and conventional brands might not be able to do. This definition would mean that the halal cosmetics industry is one. A relatively new industry, the halal cosmetics industry is projected to receive an income of $81 billion by 2021, enticing many newcomers into the industry.
An example of a halal cosmetic brand that has been proven successful is Iba Halal Care, the first halal-certified cosmetics brand from India. Their success has been astounding. In just a year, Iba has grown from its first standalone store in Ahmedabad to a franchise network around India and supplies their products to global online stockists such as Amazon. A household name in India, the company focuses strictly on producing halal ranges.
The Muslim population in Western countries are also lending a hand to niche players in the halal cosmetics industry. Launched in 2011, Amara cosmetics is the first North American country to provide halal certified cosmetics to Muslims in the United States—and around the world. Founder of Amara, Shamalia Mohamed hoped to create a cosmetics brand that Muslims could easily pick up without having to read the labels before purchasing
The number of Muslims make up 23% of the world and is expected to experience a drastic surge—catapulting to 2.8 billion people in 2050. According to renowned market research company Technavio, sales of halal products in the US have increased around 80 percent every year. The more Muslims there are, the more production of halal cosmetics is expected.
In addition to that, halal brands don’t only attract Muslims but also members of society that agree with the ethical route that halal offers. Because cosmetics often contain non-permissible animal derived ingredients, halal brands often take the route of avoiding animal derived ingredients at all costs. Plant based products not only provide assurance to Muslims but also ethically conscious communities such as vegans and vegetarians. This can be found by halal and plant-based cosmetics brands such as PHB and INIKA.
All things considered, niche markets are created by consumers’ wants and needs, yes, the halal cosmetics can outgrow their niche. The number of Muslims is rapidly rising and the growth won’t stop anytime soon. At this rate, the halal cosmetic industry will only grow bigger, soon blanketing over the cruelty-free and organic cosmetics market as well.