Strategies for Korean cosmetics

to successfully penetrate the

global halal cosmetic market

James Jangsuh Noh, Ph.D.

 (US $ Billion , 2014)

$81 $79 $60 $54 $45 $41

United States Japan China Global Muslim Germany France
Market

India $4.2
Russia $3.3
Indonesia $3.1
Turkey $2.9
Malaysia $2.7
Bangladesh $2.3
Egypt. Arab Rep. $2.1
Kazakhstan $1.9
United Kingdom $1.7
Iraq $1.7

27% 20% 20% 10% 23%

Skin Care Hair Care Make-up Fragrance Others

(Source: State of the Global Islamic Economy Report 2015/16)

 (US $ Billion , 2014)

2014 2020
$54B $80B
7% of Global Expenditure 8% of Global Expenditure

$13B
$115 Cosmetic/personal care imports
$113B Global Exports By OIC countries in exports
Global Imports (11.5% of global imports)

$4
$13B
OIC Imports
OIC Exports $4B
Cosmetic/personal care trade
deficit By OIC countries (2014)

$1,971M $1,180M $941M $736M $671M

France Germany Singapore United Kingdom China
 Cosmetic Exports by OIC regions
Southeast Asia 641 22% Other OIC
Southeast
9%
Central Asia 26 1% Asia Central
22% Asia
1%
South Asia 17 1%
South
Non-Arab Middle East 650 23% Asia
Non-Arab
Arab 1%
Arab 1,275 44% Middle East
44%
23%
Other OIC 264 9%

TOTAL OIC 2,873 100.0%

Republic of
Cosmetic Exports by OIC countires
Cote d'Ivoire
Egypt 8% Malaysia Malaysia 287 11%
4% 11% Indonesia 354 14%
Indonesia
Turkey 650 25%
14%
UAE
Lebanon 109 4%
34% Turkey
25% UAE 891 34%
Egypt 100 4%
Lebanon Republic of Cote d'Ivoire 202 8%
4%
 Cosmetic Imports by OIC regions
Southeast Asia 1,922 20% Other OIC Southeast
4% 0% Asia Central
Central Asia 438 5% 20% Asia
5%
South Asia 183 2%
South
Non-Arab Middle East 1,192 13% Asia
2%
Arab 5,361 56% Arab
56%
Other OIC 398 4%
TOTAL OIC 9,494 100.0% Non-Arab
Middle East
13%

Cosmetic Imports by OIC countries Malaysia 870 13%

Kuwait Malaysia
8% Indonesia 1,028 15%
13%
Indonesia Kazakhstan 392 6%
15%
UAE Turkey 1,192 18%
38%
Turkey
18% Saudi Arabia 157 2%
Kazakhstan
6% UAE 2,608 38%
Saudi Arabia
2% Kuwait 564 8%
 Halal Definition

 Halal
:: Things or actions that permitted by Shariah (Islamic)
law

:: Shariah law defined by Malaysia law means the law

of Islam in the Mazhab of Shafie or the laws of Islam
in any of the other Mazhabs of Maliki, Hambali and
Hanafi.

Ref: MS 2200:Part 1:2008

 Any human parts or ingredients derived from there of;

1 :: urine, placenta, blood, amniotic fluid, vomit

and pus
 Any parts or substances derived from animals
forbidden to Muslims by Shariah law;
2
:: dog, pig, etc
:: Lard, Gelatin, Collagen, Glycerin, Allantoin, etc.

Any parts or substances derived from ;

:: carrion
3 :: halal animals that are not slaughtered
according to Shariah law
:: beef tallow, gelatin, collagen etc.
 Any materials or genetically modified organisms (GMO)
which are derived or contaminated with /from animals
forbidden to Muslims according to Shariah law
4
Harm the consumer or the user
:: dangerous/toxic chemical (Mercury, Lead,
Hydroquinone etc.)
1 Land & Aquatic animals

A. Derived from halal land animals and slaughtered

according to Shariah law are halal.
:: beef tallow, gelatin, collagen from slaughtered beef

B. All aquatic animals that are halal for consumption

:: marine collagen (fish)

C. Sources derived from land animals’ fur, hair and related

material (except pig) which were harvested whilst the
animals are still alive are halal .
:: lanolin
2 Plants and Microorganism

A. Derived from plants

:: Botanical extracts, Plant essential oils, Allantoin, etc.

B. Derived from microorganisms

:: Xanthan gum

EXCEPT !
Those that are hazardous and/or mixed with derivatives
from prohibited ingredients/materials:

::Enzyme extraction (source of enzyme; trypsin)

3 Soil and Water

All sources from the soil and water and its by products
(including minerals) are halal for use except those that are
hazardous and/or mixed with materials that are non-halal .

4 Alcohol

Material for cosmetic and personal care that contain alcohol

excluding alcoholic drinks (khamar) or fermented alcohol,
are permissible.

5 Synthetic

Materials for cosmetic and personal care produced

synthetically are halal except those that are hazardous
and/or mixed with materials that are non-halal .
Compliance to Halal Cosmetic Standards

Malaysia: MS 2200:2008

United Arab Emirates: UAE.S. 2055-4:2015

Compliance to Good Manufacturing Practice

Processing lines, tools and utensils shall be dedicated for halal

production only

Devices, utensils, machines and processing aids used for

processing halal cosmetic shall not be made of or contain
any materials derived from dog or pig
Packaging materials shall not be made from any raw materials
that are non halal or considered hazardous to human health

Labelling and advertising shall not contravene with the principles

of Islamic law and shall not display indecent elements which are
against Islamic law

The product manufactured or its ingredients do not contain

any components of animal that are non-halal according to
the Islamic law.
 FARMASI (Turkey) Wardah (Indonesia)

http://www.farmasi.com.tr/en/
 Sold in 118 countries http://www.wardahbeauty.com/
 No animal experiment
 Plant based ingredients

(Malaysia) (Malaysia)

http://www.simplysiti.com.my/ http://www.ivy.com.my/

 Founder: Dato’ Siti Nurhaliza  Korean beauty inspired brand ‘Gowa’

 Researched and formulated in Korea
 More than 400 outlets in Malaysia
 OEM from Korea
China 1,172 40.3% Annual growth Rate

Hong Kong 687 23.6% 60.00%

55.33%
50.00% 52.00%
United State 238 8.2%
Taiwan 139 4.8% 40.00%

Japan 138 4.7% 30.00%

26.05%
Islamic countries 108 3.7% 20.00% 20.14%
Thailand 87 3.0% 10.00%
Singapore 66 2.3% 2.85%
0.00%
Other 275 9.4% 2011년 2012년 2013년 2014년 2015년

1,200,000

1,000,000
Total Export in 2015 U$ 2.9 B
800,000

600,000

400,000

200,000

-
China Hong United Taiwan Japan Islamic Thailand Singapor Other
Kong State e
Export Cost 1,172,16 687,200 238,084 139,419 137,788 108,073 86,982 65,737 274,651
 (Unit: 1,000 U$)
Country 2013 2014 2015 % Share
Malaysia 39,573 44,941 47,989 44%
Indonesia 10,346 12,489 13,071 12%
Kazakhstan 3,363 5,579 10,548 10%
UAE 8,186 7,524 8,329 8%
Iran 5,290 8,113 7,871 7%
Saudi Arabia 3,786 5,031 6,151 6%
Turkey 2,551 2,534 3,633 3%
Others 6,011 7,469 10,481 10%
Total 79,106 93,680 108,073 100%

Saudi Others
Arabia Turkey
6% 3%
10% Annual Increase
20% 18%
Iran Malaysia
13% 15%
7% 44%

10%
Indonesia
UAE 12%
8% 0%
Kazakhsta
n 2013 2014 2015
10%
37 kinds of
cosmetic products
Halal certified by
JAKIM (Malaysia)

80 kinds of
cosmetic products
Halal certified by
GIMDES (Turkey)
“The Indonesian branch of South Korean
cosmetics
manufacturer Cosmax has officially
secured halal certification
from MUI(Indonesia), paving the way to
enter the global cosmetics market
targeting Muslims. “

“Greencos produces halal certified

products on an OEM base for
‘Rear Nature’, a new brand
launched by a famous Korean
actress.”
 An Offer from Selangor State of Malaysia as “Global Halal Hub”

“A uniquely developed dedicated manufacturing

park with shared common facilities, services and Korean Halal CBC Park
practices to allows the Korean Halal Cosmetic & Project
Personal Care Industries to leapfrog its market
A Dedicated Manufacturing Project
share into the estimated USD 700 Billion global
industry by capitalizing on the Halal Brand and
the HIS Ecosystem initiatives and global platform
projects t via:
Japan
 Ready availability by Central Spectrum Sdn China
Bhd of a specially designed facilities in a South
100.0 acres park like in the Selangor Bio Bay Korea
(Phase 1) for value adding, packaging and India
rebranding facilities that will ensure a 24/7 Pulau Indah
halal assurance services and certification
compliance.
Australia
 Synergistic participation with various
stakeholders within the HIS Trade
Procurement Nexus, Information
Repositories-E Market Nexus and the Halal New
Technical Competent Person Platform Zealand
Projects.”