The Potential of Halal Cosmetics

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1 The Potential of Halal Cosmetics Sarifah Rejab Head Cosmetics and Natural Products Programme Research and Technology Division SIRIM Berhad Malaysia 3rd International Symposium On Asia Cosmetic Development Recent Trends In Cosmetic Technology & Regulation, Osong, Korea,21 May 2013

2 Presentation Outline Introduction to Halal (What Does It Mean) Update of Malaysian Halal Cosmetic Standard Current size of Halal Cosmetics and Growth Potential Halal Certification- What criteria to get a product Certified Halal Halal Cosmetics :What ingredients are allowed/prohibited in cosmetics Example of Halal Cosmetics

3 ORGANISATION STRUCTURE CHAIRMAN & BOARD OF DIRECTORS President and Chief Executive Subsidiaries Research & Technology Innovation Division Technical Services Divison Corporate Services Division

4 SIRIM S CORE BUSINESS

5 INDUSTRIAL BIOTECHNOLOGY RESEARCH CENTRE Resource Identificati on & Characteri zation Biosafety & Toxicity assessment Product Development & Scaling up Bioactive Extraction & Characteri zation Bioactivity Assessment Delivery Technology Topical application

6 LIST OF MS STANDARDS ON HALAL & ISLAMIC CONSUMER GOODS : No MS No Title Year Price 1 MS 1500:2009 HALAL FOOD - PRODUCTION, PREPARATION, HANDLING AND STORAGE - GENERAL GUIDELINES (SECOND REVISION) MS 2200: PART 1: MS : MS : MS :2010 ISLAMIC CONSUMER GOODS - PART 1: COSMETIC AND PERSONAL CARE - GENERAL GUIDELINES HALALAN-TOYYIBAN ASSURANCE PIPELINE - PART 1: MANAGEMENT SYSTEM REQUIREMENTS FOR TRANSPORTATION OF GOODS AND/OR CARGO CHAIN SERVICES HALALAN-TOYYIBAN ASSURANCE PIPELINE - PART 2: MANAGEMENT SYSTEM REQUIREMENTS FOR WAREHOUSING AND RELATED ACTIVITIES HALALAN-TOYYIBAN ASSURANCE PIPELINE - PART 3: MANAGEMENT SYSTEM REQUIREMENTS FOR RETAILING MS 2424:2012 HALAL PHARMACEUTICALS - GENERAL GUIDELINES

7 Global Halal Market The global Halal market is expected at USD 2.3 trillion, not including banking. Research by World Halal Forum Secretariat found 67 % or USD 1.4 trillion of this market comprise of food and beverage. Pharmaceuticals make up of 22 % or USD 506 million with cosmetic and personal care totaling USD 230 billion. If we include the services sector for halal, and we should give this serious consideration the potential size of the total market is astronomical.. ( Honorable Prime Minister of Malaysia on World Halal Forum 2010)

8 Potential halal market

9 Public awareness on halal product Meat based products % Processed food % Pharmaceutical % Ref : A. Rashid Mohd. Zain Malaysia External Trade Development Corporation Cosmetics %

10 Introduction to Halal (What Does It Mean)

11 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

12 Halal cosmetic and personal care: What ingredients are allowed/prohibited in cosmetics

13 MS 2200: Part 1: 2008 ; Islamic Consumer Goods Part 1: Cosmetic And Personal Care General Guidelines Halal Act and Standard in Malaysia

14 Prohibited ingredients:- a) any human parts or ingredients derived from there of; - urine, placenta, blood, amniotic fluid, vomit and pus

15 Authorities in Peru block human fat for cosmetics ring By Simon Pitman, 20-Nov-2009 Related topics: Products & Markets Police in Peru say they have arrested a number of people on suspicion of murdering people in order to sell on their fat, allegedly to European cosmetic makers. Police officials said the gang murdered individuals in rural areas and then extracted fat and tissues from the corpses in a clandestine laboratory, which was then sold to intermediaries in the country s capital, Lima. According to a report in Peruvian national newspaper La Republica, police said the fat was sold on for approximately 10,000 a litre, and they believe it was then sold on to cosmetics companies in Europe for anti-ageing treatments, although this theory is still being investigated. An organised gang, that included both Peruvian and Italian nationals, is said to have targeted mainly farmers in rural areas of the country, luring them with offers of employment, only to murder them. Police investigate up to 60 related missing persons At a press conference in Lima, a general of the Peruvian National Police, Eusebio Fé lix Murga, said his officers had arrested four people on suspicion of murdering dozens of victims, while further investigations were looking into gang members still at large, including two Italian nationals.

16 Prohibited ingredients (continue):- b) any parts or substances derived from animals forbidden to Muslims by Shariah law; - dog, pig, etc Example : Lard, Gelatin, Collagen, Glycerin, Allantoin,etc

17 Prohibited ingredients (continue):- c) any parts or substances derived from :- - carrion - halal animals that are not slaughtered according to Shariah law Example : beef tallow, gelatin, collagen etc.

18 Prohibited ingredients (continue):- d) any materials or genetically modified organisms (GMO) which are derived or contaminated with /from animals forbidden to Muslims according to Shariah law

19 Prohibited ingredients (continue):- d) Harm the consumer or the user Example: dangerous/toxic chemical (Mercury, Lead, Hydroquinone etc)

20 Permitted (Halal) ingredient:- Its sources

21 i) Land and aquatic animals a) derived from halal land animals and slaughtered according to Shariah law are halal. Example : beef tallow, gelatin, collagen from slaughtered beef b) All aquatic animals that are halal for consumption Example : marine collagen (fish)

22 i) Land and aquatic animals c) Sources derived from land animals fur, hair and related material (except pig) which were harvested whilst the animals are still alive are halal. Example : lanolin ii) lanolin Cosmetic grade lanolin

23 ii) Plants and microorganism :- a)derived from plants Example : Botanical extracts, Plant essential oils, Allantoin, etc b)derived from microorganisms Example: Xanthan gum -except those that are hazardous and/or mixed with derivatives from prohibited ingredients/materials:- - Enzyme extraction (source of enzyme; trypsin)

24 iii) 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 nonhalal. iv) Alcohol Material for cosmetic and personal care that contain alcohol excluding alcoholic drinks (khamar) or fermented alcohol, are permissible v) Synthethic Materials for cosmetic and personal care produced synthetically are halal except those that are hazardous and/or mixed with materials that are nonhalal.

25 Halal Certification- What criteria to get a product Certified Halal GMP Raw materials Halal Certified product

26 Halal Certification Requirements Compliance to Asean Cosmetic Directives:- - Registered with Ministry Of Health Malaysia - Passed stability test - Passed safety test - Passed quality test (microbial limit test) - No animal testing involved

27 Halal Certification Requirements Good Manufacturing Practice Facilities 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.

28 Halal Certification Requirements 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.

29 Halal Certification Requirements The product manufactured or its ingredients do not contain any components of animal that are nonhalal according to Islamic law

30 Halal Certification Requirements

31 Halal Certification Requirements-raw material certificates

32 Halal Certification Requirements Halal authority in Malaysia is the Department of Islamic Development Malaysia (JAKIM). JAKIM acts as both certification and regulatory body. Halal certification issued by JAKIM is recognised worldwide due to its stringent criteria employed. Also it is much sought after by other countries as the global competent Islamic authority in the inspection, supervision and certification of halal products.

33 Halal Certification Process On line application Issue payment to Halal Authority Premise audit Issuance of Halal Cert Approval Panel Laboratory test

34 MALAYSIA HALAL LOGO

35 INTERNATIONAL HALAL CERTIFICATION BODIES TOTAL OF HALAL CERTIFICATION BODIES RECOGNISED BY JAKIM 57 TOTAL OF STATE 31 Example : Country of China i) Shandong Islamic Association ii) China Islamic Association iii) Islamic Association of Henan

36 HALAL CERTIFICATION BODIES Country Logo Country Logo 1. Australia 5. New Zealand 2. Canada 6. Singapore 3. Indonesia 7. Thailand 4. United Kingdom 8. United States of America

37 EXAMPLES OF HALAL CERTIFIED COSMETIC Multinational companies Malaysian based company Malaysian based company

38 HALAL COSMETIC DEVELOPMENT PROCESS : OUR PRACTICES R& D Design Develop and design raw mat that conform to halal requirements Sourcing : Source halal raw mat supplier that conform to halal requirements Production: Ensuring that non halal and halal are completely separated Logistic: GMP & halal manufacturing facilities; transportation & storage Sales & Marketing: Obtained halal certification for product bearing halal logo

39 HALAL COSMETIC Authority : Voluntary Manufacturer : Business decision Consumer : Informed tool for purchasing decision

40 Thank You sarifah_rejab@sirim.my Tel : /53 Fax :

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