Dubai looks set to capitalize on the burgeoning halal cosmetic market, currently worth an estimated AED 2.06 billion ($560 million) worldwide. The city’s potential is aligned to its position as regional hub for the distribution of halal commodities; a market that is worth a global total of $2 trillion.
Enhancing Dubai’s status in this sector is the domestic demand for such produce; a demand that is associated with improved levels of knowledge from consumers in the Middle East about the nature of the cosmetic industry and the ingredients used in many of its products.
Ms Heather Nix, Group Exhibitions Manager of Messe Frankfurt, organisers of Beauty World Middle East - the largest International Trade Fair for beauty Products, Cosmetics and Perfumery in the Middle East - believes that consumers in this part of the world are becoming more selective in their choice of personal care items. “There has been a common misconception up until now about what constitutes halal, with many people assuming that it relates purely to foodstuffs. Others who have had a better understanding of the rulings have simply been unaware that some cosmetics contain ingredients that they should avoid”, she says. “Recently, however, more people have become aware about the nature of beauty products and are choosing to spend money on make-up and lotions that fit in with their religious and cultural requirements”, she adds.
Dubai’s position as regional commercial centre for halal products is having a strong impact on the sale of halal cosmetics. In total, an estimated $150 billion (550 million AED) worth of halal merchandise is distributed through the Emirate each year, with personal care items constituting a large proportion of this figure.
Recent developments contributing to this growth include the Malay Chamber of Commerce Malaysia (MCCM)’s decision to set up its marketing centre in Dubai. So far 100 companies retailing more than 400 halal products - including cosmetics - have participated in this venture and it is anticipated that over the next five years, more than $10 billion (37 billion AED) of halal products will be channeled through this market.
The growth of halal cosmetics also reflects the general boom across the Middle East in the sales of beauty and grooming products. Overall, the category has grown by 12% annually and it was estimated that the total value of cosmetic related sales in the Middle East region reached US$2.1 billion (7.7 billion AED) last year.
In the previous year, the UAE market alone was worth more than US$414 million (AED 1.52 billion) in retail sales, with the halal sector experiencing an attendant level of development.
“There is clearly an increased demand for halal related cosmetics. We have received more trade enquiries this year wanting to find out about exhibitors at our event who will be showcasing halal products at Beautyworld”, observed Ms. Nix.
Beautyworld Middle East is the largest International Trade Fair for beauty Products, Cosmetics and Perfumery in the Middle East and runs from 20-22 May, 2007 at the Dubai International Convention and Exhibition Centre. Now in its 12th year, it is expected that approximately 9500 trade visitors will attend from around 80 countries.