CTU695 FOR REPORT

The Factors and Impacts of Global Acceptance in Consuming Halal Products - Cosmetics

The halal economic industry is presently developing in Indonesia as well as the global
level. The global economic sector is both limited to the sharia financial sector and halal food
including halal cosmetics. The halal industrial sector is growing promptly where the developing
number of Muslim populations in the world supports this. The growth of the halal cosmetics
industry sector cannot be separated because the halal industry is unlimited to the food industry.
Cosmetics are now an essential item in daily life that is used for both men and women (Abd
Rahman, Asrarhaghighi, & Ab Rahman, 2015). The global halal cosmetics industry is estimated
at USD13 billion with an annual growth rate of 12%. Pacific (2010) stated that the halal
cosmetics market currently accounts for 11% of the total global halal industry.

Firstly, among the factors affecting the increasing request of halal cosmetics is the
growing knowledge and information of halal (Rahim, Shafii, & Shahwan, 2015). Halal cosmetics
products are identified as clean, safe, and high-quality products. Halal cosmetics and general
cosmetics products are different as halal cosmetics do not contain pork, along with their
derivatives, and alcohol (Mohezar, Zailani, & Zainuddin, 2016).

Secondly, a few respondents stated their motive for consuming halal cosmetics is because
halal cosmetics is designed to be safe for their ingredients. Therefore, they will no longer
hesitant of using halal cosmetics.

Other than that, Aisyah (2016) stated that Muslim’s understanding for the raw ingredients
and the process of production of goods accepted is meaningful as it is the Islam’s obligation that
Muslims has to accept halal products only. Religiosity also plays an important role in the
attitudes of Muslims in choosing and consuming halal cosmetics. It is said that Simanjuntak and
Dewantara (2014) shows that religiosity affects the behavior of reading the halal label from
students at Bogor Agricultural Institute (IPB), Indonesia.
 Apart from that, the purchasing decisions by generation Y are affected by social medias
which is different from previous generations. Ordun (2015) stated that generation Y trusts the
thoughts of virtual friends rather that their real friends. it is because generation Y cannot pay
attention on specific aspects for a long time, easily get bored as well as doing things
simultaneously or multitasking.

Culture including subculture as well as social classes are important in the purchasing
behavior. The most basic determinant of desire and behavior is the culture. Reference groups,
families, roles as well as social status are social factors which affects the consumer buying
behavior. Personal characteristics are also the factors that influence the consuming of halal
cosmetics which includes age and family cycles, work and economic conditions, personality and
self-concept as well as lifestyles.

Furthermore, there are also a few impacts. Halal cosmetics are a potential commodity for
the global market which is important in increasing sales. The increase of sales in halal products
implies a close consideration of the consumer behavior. A such, those potential ones include
generation Y in making their own decision in consuming a product. It results in expecting to
provide data to halal cosmetics organizations in designing the greatest marketing strategies.

Next, religiosity has an impact on lifestyle including the implementation of values to

everyone. As an example, Muslims are banned to consume products containing pork or pork
byproducts including ingredients that are non-halal (Ali et al., 2016). Religion is among the
important aspects in decision making as it is the guiding fundamental for an individual to behave
according to law and ethics.

Moreover, consumers tend to have more motive in doing an activity they like. Once
consumers feel happy in consuming halal cosmetics, they will have the aim in buying halal
cosmetics again in the future (Endah, 2014). More positive consumer attitudes toward halal
cosmetics will increase the consumers in making genuine purchases on halal cosmetics.

Last but not least, the statistical results illustrates that a partial knowledge of halal and
Islamic religiosity have a specific effect on the attitude of consumers of generation Y. The better
the level of consumer religiosity, the greater the positive attitudes of consumers in choosing to
consume halal cosmetics.
FOR SLIDES

Factors of Global Acceptance in Consuming Halal Cosmetics

- increasing halal knowledge and information

- because halal cosmetics is considered safe of their ingredients.
- religiosity plays a role in Muslim attitudes in choosing halal cosmetics.
- Generation Y purchasing decisions are influenced by social media where this is different
from previous generations.
- Social factors including reference groups, families, roles, and social status also influence
consumer buying behavior.

Impacts of Global Acceptance in Consuming Halal Cosmetics

- halal cosmetics is a potential commodity for the global market as it is important to

increase sales.
- Muslims are not allowed to consume products originated from pork or pork byproducts or
other ingredients that fall into the category of non-halal (Ali et al., 2016).
- When consumers feel happy or like buying halal cosmetics, consumers will tend to have
the intention to buy halal cosmetics again in the future (Endah, 2014).
- the more positive consumer attitudes toward halal cosmetics, the more consumers will
make actual purchases on halal cosmetics.
- The better the level of consumer religiosity, the more positive the attitude in choosing
halal cosmetics.