Halal oral care among top cosmetics export opportunities for Indonesia
This was according to the recent Indonesia Halal Markets Report 2021/2022 which was jointly released by Bank Indonesia, Indonesia Halal Lifestyle Center and DinarStandard.
With consumer spending of $184 billion in 2020, Indonesia is the largest Halal consumer market in the world, accounting for 11.34% of global Halal economy spending.
However, Indonesia is only the ninth-largest exporter of halal products to the Organization of Islamic Cooperation (OIC) countries, exporting $8.6 billion worth of halal products. This represents 3% of halal exports.
To boost its exports, the report highlighted categories with high export potential, including a $20 million opportunity in oral care.
Halal oral care manufacturers can capitalize on growing consumer health concerns, particularly in the wake of the COVID-19 outbreak.
This has led to an ever-increasing demand for cruelty-free, organic, natural, and certified vegan products.
The report noted that this could boost global demand and appeal for halal-certified products, as it shares traits and principles with many of those values.
CosmeticDesign-Asiapreviously reported that the oral care segment was undergoing a transformation from a basic healthcare product to a beauty and lifestyle essential, with brands such as Australia’s Lovebyt and India’s Vedix disrupting the Marlet.
Main markets to exploit
Potentially, UAE, Saudi Arabia and Malaysia represented the biggest opportunities among the OIC that Indonesian oral care manufacturers can exploit.
Meanwhile, the top three opportunities outside the OIC were Germany, UK and US.
At present, Indonesia is on the 16andLargest oral care exporter to OIC behind major exporters China, Egypt and Thailand. China accounts for the largest share which accounts for 25.7% market share.
Growth in its oral care exports could help the country boost its cosmetics exports.
According to the report, Indonesia is the fourth largest importer of cosmetics in the OIC, but only ranks 20th.and in world exports.
Globally, global Muslim consumer spending on cosmetics is expected to increase from $65 billion in 2020 to $93 billion in 2025.
The COVID-19 pandemic resulted in Indonesia’s first negative GDP growth since 1998 and underscored the importance of developing its halal industry as a source of growth.
The report also highlighted the gaps that Indonesia would need to overcome to exploit its opportunities in the global halal market.
He stressed that “closer cooperation” was needed between halal certification institutions, producers, academics, researchers and government to create regulations that would strengthen Indonesia’s position as a leader in the industry. halal economy.
Additionally, the report stated that there were a limited number of players in Indonesia who could hold their own on the global stage, as there was a noticeable gap in R&D and manufacturing of halal-friendly ingredients.