Categories of Players in Halal Cosmetic Value Chain: Preliminary Findings

The global halal cosmetics industry is lucrative and valued USD 9637.6 million in 2022 and expected to grow further to USD 12220 million by 2030. This growth is attributed to the increasing numbers of the population of affluent Muslims. However, past studies revealed the lack of knowledge of consumers on the industry
practices, on the ingredients in cosmetics products, and on the rules of permissibility of cosmetics. In such a situation, the consumers often fall prey to fraudulent and harmful cosmetics products. This lack of knowledge is contributed by the complexity of the cosmetics value chain, in which most times the activities within the value chain remain hidden from the public view. A first step toward resolving these issues is to understand the elements in the value chain of cosmetics. Specifically, the purpose of this study is to identify the different categories of players in the halal cosmetic value chain. Understanding of the different categories of the players in the industry based on the value chain is fundamental in supporting understanding of the practices in the industry and ultimately help educate the consumers. This article, which presents the preliminary findings of the study, revealed that cosmetic producers can be categorized based on their functions in the value chain and the size of their operations. Among the companies involved in halal cosmetics, their growth strategies of vertical integration are common in the industry, indicative of the
dynamic and evolving nature of the industry value chain.