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The Booming Skincare Industry: Definition, Lifestyle Trends, and Halal Demands

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  • The Booming Skincare Industry: Definition, Lifestyle Trends, and Halal Demands

Skincare, a subset of cosmetic products, has become part of the modern lifestyle. The industry’s 77% post-pandemic surge underscores both the size of the market and the urgency of mandatory halal regulations, which will be in effect by 2026.

Data from the Ministry of Industry shows that over the past three years, the number of businesses in the cosmetics sector has surged by more than 77%. While there were only 726 domestic cosmetics businesses in 2020, by 2024 the number had jumped to 1,292. Of these, 83 percent were micro and small enterprises, and 17 percent were medium and large industries.

In the modern era, skincare is no longer just a supplement but an integral part of everyday lifestyle. The term “skincare” has become increasingly popular, as skincare products proliferate on the market. But what exactly is skincare, how is it regulated, and why is halal certification a major concern?

Regulatory, there is no distinction between skincare and cosmetics. According to the Director of Cosmetics Supervision at the BPOM, I Gusti Ngurah Bagus Kusuma, cosmetics are substances or preparations used on the external parts of the human body to cleanse, perfume, alter appearance, correct body odor, or protect and maintain the body in good condition.

By this definition, skincare falls within the cosmetics category, specifically as products that focus on skin care. In practice, cosmetics are divided into two main groups: decorative products, such as powder and lipstick, known as makeup, and skin care products, such as face creams and body lotions, known as skincare. Supervisory regulations for both refer to the same provisions.

The proliferation of skincare brands in recent years reflects changes in people’s lifestyles. According to Dr. Priyo Wahyudi, an expert at Laboratory LPPOM MUI, skincare is no longer considered an additional necessity but an essential part of daily life. Increasing demand has driven rapid growth in this market.

Various brands, both local and international, are competing to offer innovations to meet consumer needs. The self-care trend is also strengthening skincare’s position in modern society, as more and more people realize that healthy skin is a long-term investment.

Although skincare and makeup are both cosmetics, they serve different purposes. Makeup focuses on aesthetics, for example, covering imperfections, concealing blemishes, or emphasizing facial features for a more proportional appearance.

Products such as foundation, powder, blush, lipstick, and mascara enhance appearance with immediately visible results. In contrast, skincare works to maintain skin health, moisturize, protect from sun exposure, and address issues like acne or dry skin. The role of skincare is more preventative and long-term, making it highly important for many.

Because both are cosmetics, the applicable regulations are also similar. Based on Act No. 33 of 2014 concerning Halal Product Assurance (UU JPH) and Government Regulation (PP) No. 42 of 2024, all cosmetic products must be halal certified with a deadline of October 17, 2026. This is important considering that the majority of Indonesia’s population is Muslim, so halal certification is not just a preference, but a necessity.

Demand for halal cosmetics in Indonesia is also increasing, along with growing public awareness of product safety and halal certification. This fact presents significant opportunities for the cosmetics industry, particularly in skincare.

Globally, this industry is projected to reach USD 677.2 billion by 2025, with a growth rate of 3.37%. Indonesia has strong potential to become a major player, supported by a female population of over 141 million and a high interest in self-care. Furthermore, products that prioritize halal aspects have a unique appeal in both domestic and international markets.

With this significant potential, skincare manufacturers are not only required to create quality products but also to ensure compliance with halal regulations. For consumers, understanding halal certification is crucial when choosing products that are safe, high-quality, and aligned with their values. Skincare is no longer just a beauty product; it is part of a healthy lifestyle and identity, presenting significant opportunities for the industry to grow in the future.

To support cosmetics manufacturers, LPH LPPOM also presents the Halal On 30 program. Through short 30-minute sessions accessible at bit.ly/HalalOn30, this program provides practical explanations of the halal certification process, allowing business owners to understand it without investing a lot of time.

In addition, the LPPOM MUI Laboratory, accredited to ISO/IEC 17025:2017, provides testing services, including water penetration and vegan testing for cosmetic products. These services are essential for manufacturers to ensure product quality meets halal standards while also meeting the increasingly diverse needs of consumers. More information can be accessed at https://e-halallab.com/. (***)

Source: https://halalmui.org/jurnal-halal/175/