Halal cosmetics and pharmaceuticals: Over USD200 billion in consumer spending and what Vietnamese businesses should prepare

HalalHub.vn · In-depth analysis · 30 October 2026

(HalalHub.vn) – Vietnamese businesses often associate Halal with food. Yet Muslim consumers spend over USD200 billion annually on cosmetics and pharmaceuticals, while major importing countries are bringing these sectors into mandatory Halal timelines. This article examines market size, regulatory schedules, high-risk ingredients and preparation steps for businesses.

Muslim consumer spending on cosmetics and pharmaceuticals. Graphic: HalalHub.vn, based on DinarStandard’s State of the Global Islamic Economy 2025/26 report.

1. Scale: Larger than many businesses expect

According to DinarStandard’s State of the Global Islamic Economy 2025/26 report, Muslim spending on cosmetics reached approximately USD92 billion in 2024, up 5.8% year on year, and is projected to reach USD124 billion in 2029. Pharmaceutical spending reached around USD112 billion and is forecast at USD146 billion in 2029. The three largest Muslim cosmetics markets are India, Türkiye and Indonesia.

Note that these figures represent Muslim consumers’ spending across both sectors, rather than the market size of Halal-certified products. Other research firms report a much smaller “Halal cosmetics” market because they count only certified products. The gap between these figures indicates room for certified offerings.

2. Regulations are gradually tightening

Source: HalalHub.vn, compiled from BPJPH, CIRS, the Department of Standards Malaysia, Bernama and Decree 127/2026/ND-CP.

Indonesia brings over-the-counter medicines into mandatory Halal certification from 2029 and prescription medicines from 2034. Illustrative photo: Unsplash.

3. What makes these sectors more complex than food?

A cosmetic product or medicine may contain dozens of ingredients, many imported through multiple supplier tiers. Risks may arise not from the main ingredient but from excipients, emulsifiers, flavorings and capsule shells. Experts also caution that GMP, ISO or HACCP compliance does not automatically satisfy Halal requirements.

Seven common ingredients requiring origin traceability in Halal certification for cosmetics and pharmaceuticals. Graphic: HalalHub.vn.

4. Where should Vietnamese businesses start?

Prepare a bill of materials for each product, marking ingredients of animal, alcohol and microbial origin.

Require suppliers to provide Halal certification or origin documentation for every ingredient, including excipients and flavorings.

Replace high-risk ingredients where appropriate: use plant-based HPMC capsule shells, vegetable glycerin and synthetic coloring instead of carmine.

Select a certification body according to the destination: Indonesia requires a BPJPH recognition agreement; Malaysia requires a JAKIM-recognized body; Gulf markets require acceptance by the importing country’s authority.

Use support available under Decree 127/2026 if eligible as a key exporting enterprise.

Reviewing formulations and ingredient origins is the first step in preparing Halal certification for cosmetics. Illustrative photo: Unsplash.

5. Conclusion

Cosmetics and pharmaceuticals represent a second Halal opportunity, with less competition than food but stricter ingredient management requirements. With Indonesia’s 2028 deadline and Malaysia’s support for its own businesses, the next two to three years will determine whether Vietnamese businesses can establish a foothold in this segment.

Glossary

SGIE (State of the Global Islamic Economy): DinarStandard’s annual report on the global Islamic economy.

Excipient: a substance without a therapeutic effect used for formulation, preservation or drug absorption.

HPMC: hydroxypropyl methylcellulose, a plant-derived capsule-shell material used as an alternative to gelatin.

Carmine (E120): a red colorant extracted from cochineal insects.

MS 2200-1 / MS 2424: Malaysian standards for Islamic consumer goods (cosmetics) and Halal pharmaceuticals.

WTO TBT: the World Trade Organization’s notification mechanism for technical barriers to trade.

References

Legal texts and official sources

BPJPH – Penyesuaian Penahapan Kewajiban Sertifikasi Halal Diatur dalam PP 40 Tahun 2026

Government of Vietnam – Decree 127/2026/ND-CP on quality management and policies for developing Halal products and services

JAKIM – Malaysia Halal Portal

Press and industry analysis (secondary sources, cited as published)

Salaam Gateway – SGIE Report 2026: Values-driven approach rewires halal cosmetics space

Salaam Gateway – Halal Cosmetics Sector Snapshot - SGIE 2025/26

CIRS Group – Indonesia Publishes Draft Guidelines for the Implementation of the Halal Assurance System for Cosmetics

Bernama – Budget 2027 Strengthens MSMEs’ Competitiveness In Halal Industry

VietnamPlus – Removing bottlenecks for Vietnamese Halal goods: Standards, certification and supply chains

VnExpress – Halal businesses receive support for certification costs and trade promotion

Illustrative photos: Unsplash (Unsplash License). Graphics: HalalHub.vn.

HalalHub.vn · Published on 30 October 2026 · Legal information checked as of 30 October 2026; regulations may change. Consult official sources before making decisions.

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