Cosmetics manufacturers benefit from halal-green branding on their products to enter new halal markets and increase market share

Although it is critical to integrate the concepts of halal and green, including in the purchase intention study, they are frequently examined separately. This integration enables the development of a holistic and all-encompassing management model that incorporates both physical and spiritual values. This study combines halal and environmentally friendly elements and analyses environmental knowledge and halal-green awareness, which have yet to be reviewed in relation to halal cosmetic products.

This study discovered that religiosity has no effect on halal-green awareness, and halal and green awareness have no effect on purchase intention. In increasing consumer purchasing interest, attitude can act as a moderator for halal and green awareness and religiosity. Furthermore, environmentally friendly labels and environmental knowledge influence purchase intention indirectly via two mediating variables: halal and green awareness and attitude. Those evidences suggest that as Generation Z Muslim consumers become more religious and more aware of halal and the environment, their attitudes toward eco-friendly halal cosmetic products will improve, influencing purchase intention.

The following recommendations are motivated by these evidences. First, in terms of certification, cosmetic manufacturers must pay more attention to product certification so that it is not just the company’s self-claims on halal and environmentally friendly. In other side, the government should be able to pay more attention to market product certification. These actions can increase the trust and interest of Generation Z Muslim consumers in eco-friendly halal cosmetic products. Second, not only from certification side, eco-friendly halal cosmetic manufacturers must improve their branding by emphasizing their benefits in order to compete in the market and attract the attention of consumers, particularly Generation Z. Given the enormous market potential of generation Z Muslim consumers, producers must understand their characteristics who buy their products in order to apply appropriate marketing strategies.

A great research undertaken by IPB University in Indonesia. Very privileged to work together with them on this important research for the halal cosmetics industry.

To access the full research paper