








































Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics)
Volume 9 (1), January 2017
P-ISSN: 2087-135X; E-ISSN: 2407-8654
Page 125 - 142

Received: March 14, 2016; Revised: September 21, 2016; Accepted: November 21, 2016
State Islamic University (UIN) Syarif Hidayatullah Jakarta, Jl. Ir. H. Juanda No. 95, South Tangerang
E-mail: muniaty.aisyah@uinjkt.ac.id
DOI: 10.15408/aiq.v9i1.1867

Abstract. Consumers Demand on Halal Cosmetics and Personal Care 
Products in Indonesian. This research aims to analyze the influential factors 
involved in Moslem consumers’ decision to purchase halal cosmetics and personal care 
products in Indonesia by using the Theory of Planned Behavior. 100 questionnaires 
were analyzed using Structural Equation Modeling, collected from respondents of 
female consumers who purchased Wardah cosmetics and personal care products in 
South Jakarta and South Tangerang. The findings show that attitude, subjective 
norm, perceived behavioral control and purchase intention are positively related to 
the consumers’ decision to purchase halal cosmetics and personal care products. By 
addressing the consumers’ traits that can predict halal cosmetics and personal care 
products necessity, marketers could generate proper marketing strategies to validate 
consumers’ demand which in turn will stimulate the growth of halal products 
industry in Indonesia.

Keywords: halal, cosmetics, personal care products, consumers purchase behavior, 
theory of planned behavior 

Abstrak. Permintaan Konsumen pada Kosmetik Halal dan Produk 
Perawatan Pribadi di Indonesia. Penelitian ini bermaksud menganalisis 
faktor-faktor yang mempengaruhi keputusan konsumen Moslem membeli 
kosmetik dan produk perawatan tubuh berlabel halal di Indonesia. 100 kuesioner 
dianalisis menggunakan Structural Equation Model yang dikumpulkan dari 
para responden khususnya konsumen wanita yang telah membeli kosmetik 
dan produk perawatan tubuh halal bermerek Wardah di Jakarta Selatan dan 
Tangerang Selatan. Hasil penelitian ini menunjukkan bahwa sikap, norma 
subyektif, kontrol perilaku yang dirasakan, dan niat beli konsumen berpengaruh 
positif terhadap keputusan konsumen membeli kosmetik dan produk perawatan 
tubuh berlabel halal. Dengan mempelajari perilaku pembelian konsumen yang 
dapat memprediksi kebutuhan akan kosmetik dan produk perawatan tubuh 
berlabel halal, pemasar dapat merancang strategi pemasaran yang tepat, guna 
memenuhi kebutuhan konsumen yang pada gilirannya akan dapat merangsang 
pertumbuhan industri produk halal di Indonesia.

Kata kunci: halal, kosmetik, produk perawatan tubuh, perilaku pembelian 
konsumen, teori planned behavior

CONSUMERS DEMAND ON HALAL COSMETICS AND 
PERSONAL CARE PRODUCTS IN INDONESIAN

Muniaty Aisyah



126
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Introduction

Since the dawn of civilization, food and pharmaceutical products (drugs, 
cosmetics and personal care products) have been some of the earliest human needs 
(Mursidi, 2013). However, Moslems have strict religious guidelines with regard 
to consumption and use. Allah commands Moslems to consume only things that 
are Halal (i.e. religiously permissible) and good (Al Qur’an, 23:51). Thus, it is an 
obligation for Moslem to consume and use only halal products (Rezai et.al, 2009; 
Salehudin and Luthfi, 2011; Rahim and Junos, 2012). 

In the Arabic language, Halal refers to anything that is permissible under 
Islamic law (Sharia). It is usually used to describe activities that a Moslem is permitted 
to engage in, i.e. eat, drink or use. The antithesis of halal is Haram, which in the 
Arabic language refers to anything prohibited under Islamic law. Accordingly, halal 
products are those that are Sharia compliant, i.e. do not involve the use of Haram 
(prohibited) ingredients, exploitation of labor or environment, and are not harmful 
or intended to harm (Omar et.al, 2012). The Prophet Muhammad, also forbids 
Moslem to avoid consuming things are ambiguous whether it is halal or haram 
(Imam Nawawi, Hadist by Bukhari and Muslim). These commandments regulate 
the lives of Moslems worldwide and its compliance are mandatory (Soesilowati, 
2010; Salehudin and Luthfi, 2011).

The realm of halal may extend to all consumables such as pharmaceuticals, 
cosmetics, personal care products, toiletries, etc. The halal label or certificate not 
only guarantees Moslems what they consume or use is in accordance to Islamic 
law, but also encourages manufacturers to meet the halal standard. In the scope 
of halal cosmetics and personal care products, the concept covers critical aspects 
of production such as halal ingredients and usage of permissible substances which 
must be manufactured, stored, packaged and delivered in conformity with Sharia 
requirements (Elasrag, 2016). Thus, halal labeling and certification can play 
an important role to assure Moslem consumers that the products they purchase 
meet the necessary religious requirements and conditions (Omar et.al, 2012). 
Currently, there are numerous food, pharmaceuticals, cosmetics and personal care 
products available with nonspecific labeling. Therefore, the halal verification and 
authentication of these products is urgently required (Mursyidi, 2013). 

From a Moslem perspective, knowing the origin of raw materials and 
production process of consumer items is essential due to the Sharia obligation stating 
that any Moslem must consume only halal and wholesome products. This situation 
is increasingly important since the verification and authentication of halal products 
is paramount in order to maintain the sanctity of the Islamic religion (Mursyidi, 
2013). In order to protect the rights of Moslem consumers and their efforts to 



 127

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

follow their commandments in consuming only halal products, halal certification 
institutions have emerged in several countries to provide certification for food, 
beverages, pharmaceuticals, cosmetics and personal care products that are halal or 
not containing haram (prohibited) components (Salehudin and Luthfi, 2011). 

Malaysia has taken a serious approach towards developing halal products 
since 2009 because it realized that halal considerations is the new attraction for the 
country’s Moslem customers. For cosmetics firms that operate in competitive markets, 
achieving satisfaction for their customers is particularly important if they want to 
survive in those markets. Satisfied customers will repeat their purchases and they will 
be more loyal to the firm (Yoe et.al, 2016). The Malaysia External Trade Development 
Corporation Halal Unit informed that halal cosmetics and personal care products 
as well as halal food and beverages were the only segments that reported an increase 
in exports during in the first half of 2015 while other halal ingredients, palm oil 
derivatives and industrial chemicals recorded a decrease (Rasid, 2016). 

According to a Thomson Reuters report, global Moslem spending on 
cosmetics increased one per cent to US$46 billion globally in 2013. This spending 
was 6.78 percent of the global sector expenditure and is expected to reach US$73 
billion by 2019. Based on 2013 estimates, top countries with Moslem cosmetics 
consumers are the United Arab Emirates (US$4.9 billion), Turkey (US$4.4 billion), 
India (US$3.5 billion), and Russia (US$3.4 billion) (Rasid, 2016). Another study 
in 2015, conducted by the Institute of Personal Care Science of Australia, calculated 
that the global cosmetic industry was worth approximately US$334 billion, with 
halal cosmetics contributing to US$13 billion of this amount a year (Ramli, 2015). 
According to Malaysian Halal Industry Development Corp (HDC), Moslems have 
begun to look for halal cosmetics and personal care products. Moslem consumers, 
with global population of nearly two billion, are increasingly aware that some 
cosmetics contain ingredients derived from animal origins and are thus concerned 
about the halal status (Rasid, 2016). The increasing awareness among Moslem 
consumers regarding halal cosmetics and personal care products has attracted the 
attention of the cosmetics retailers (Abd Jabar et.al, 2012). 

Indonesia, country with the largest number of Moslems in the world, is 
a large potential market for consumables such halal cosmetics and personal care 
products. The increasing preference for halal cosmetics and personal care products 
in Indonesia is evident from MarkPlus Insight Women Survey in 2015 which shows 
that Wardah—which positions itself as a Moslem-friendly, halal cosmetics brand—
was named the most popular cosmetics brand for women. The survey conducted 
in mid-2015 included 1,183 female respondents across 18 cities in Indonesia, aged 
between 15 and 59 years. According to the result, 37.8% of the respondents claimed 



128
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Wardah to be their favorite cosmetics brand, followed by Pixy (10.1) and Sari Ayu 
(8.7%). Ponds and VIVA were at fourth and fifth spot, with negligible margin. 
Apart from Wardah, Sari Ayu too is certified halal (MarkPlus, 2016). 

The increasing preference of local halal brand cosmetics like Wardah, Sari Ayu 
and many other products from overseas with halal certification indicates consumers 
demand on halal cosmetics and personal care products in Indonesia is increasing. 
Consumer demand is the willingness and ability of consumers to purchase a quantity 
of products in a given period of time, or at a given point in time (Economicsonline, 
2016). As the largest Moslem population in the world, it is no surprise that halal 
cosmetics have caught on in Indonesia. To set up business plan to penetrate the 
potential market, local and foreign marketers must have proper understanding of the 
consumers and operate carefully in order to avoid offending Moslem consumers and 
obtain good and halal foothold in the market like Indonesia. For a product to be 
halal, it should not contain alcohol, should not be tested on animals, and should not 
contain ingredients from animals. The desire to comply with the commandment in 
consuming only halal products could create consumers’ involvement and influence in 
purchasing or choosing what product they consume (Salehudin and Luthfi, 2011). By 
discovering the influential factors involved in consumers’ decision to purchase halal 
cosmetics and personal care products enables marketers to extend their production 
in Indonesia as well as in global halal market. In order to understand how cosmetics 
and personal care products with halal labeling or certification influence the purchase 
decision of Moslem consumers, a theoretical framework is necessary.

Lada et.al. (2009) discovered that the Theory of Reasoned Action (TRA) is 
applicable to describe Moslem consumers’ intention to choose product with halal 
label. TRA suggests that the best predictor of behavior is intention. Intention is a 
function of a person’s attitude and subjective norm toward the behavior. Intention 
is the cognitive representation of a person’s readiness to perform a given behavior, 
and it is considered to be the immediate antecedent of behavior. TRA was further 
developed into the Theory of Planned Behavior (TPB) by Ajzen (1985, 1991, 2006) 
by adding a third belief, perceived behavioral control, to increase its domain of 
explanation which is the self-efficacy of the individual regarding certain behavior 
(Salehudin and Luthfi, 2011). 

This research aims to test the applicability of Theory of Planned Behavior in 
explaining how halal labeling influence Moslem consumers to purchase cosmetics 
and personal care products especially in Indonesia, as a potential market for halal 
products. By analyzing consumers purchase behavior using the Theory of Planned 
Behavior, this research could predict the consumers demand on halal cosmetics and 
personal care products and its influential factors in Indonesian market. There are 



 129

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

two behavior of the Moslem consumers in which the model will be tested, first is 
the purchase intention, and the second is the purchase decision on halal cosmetics 
and personal care products. 

In particular, this research has three specific objectives. First, to test whether the 
Theory of Planned Behavior is applicable to explain the influential factors involved in 
consumers’ decision to purchase halal cosmetics and personal care products. Second, 
to identify whether consumers’ attitude, subjective norm, perceived behavioral control 
and purchase intention influence consumers’ purchase decision. Third, to identify 
whether purchase intention is an intervening variable, which indirectly influences 
or mediates consumers’ attitude, subjective norm, and perceived behavioral control 
toward their purchase decision on cosmetics and personal care products with halal 
label. This research is structured as follows: first, introduction; second, the literature 
review; third, research method; fourth, result and discussion; and the last is conclusion. 

Literature Review

According to the Theory of Planned Behavior (TPB) model by Ajzen (1985, 
1991), an individual’s performance of certain behavior is determined by his or her 
intention to perform that behavior. Intention defines as an immediate antecedents 
of behavior (Ajzen and Fishbein, 1975). Thus, it assumes that the probability of 
performing an act is a function of intention to perform the act (Chang and Cheung, 
2001). There are three components in Theory of Planned Behavior that explain 
further intention to behave and thus behavior itself (Ajzen, 2006), such as: attitude, 
subjective norm and perceived behavioral control (see Figure 1).

Attitude

Subjective norm Intention Behavior

Perceived behavioral 
control

Figure 1. Theory of Planned Behavior (TPB) Model (Ajzen, 1985, 1991)

Attitude is the psychological tendency that is expressed by evaluating a 
particular entity with some degree of favor or disfavor (Eagly and Chaiken, 1995). 
Attitude towards the behavior refers to the degree to which a person has a favorable 
or unfavorable evaluation or appraisal of the behavior in question. The TPB model 
determined that the more favorable the attitude with respect to a behavior, the 



130
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

stronger is the individual’s intention to perform the behavior under consideration. 
The stronger the attitude, the stronger the intention will be, thus this will show in the 
purchase decision behavior and vice versa (Ajzen, 2008). In many societies, religion 
plays an influential role shaping product purchase behaviors. Considerable evidence 
indicates that religion can influence consumer attitude and behavior in general, and 
product purchasing or consuming habits in particular (Rahim and Junos, 2012). 
According to Salehudin and Luthfi (2011), attitude indicates individual belief about 
the personal evaluation regarding the good compliance to the commandment about 
halal consumption. The stronger the attitude, the stronger the consumer’s intention 
and decision to purchase halal products.

Subjective norm refers to the perceived social pressure to perform or not 
to perform the behavior (Ajzen, 1991). The TPB model holds subjective norm as a 
function of belief. It is the function of how consumer’s referent others (i.e. parents, 
family, and friends) and view the regarding behavior and how motivated the consumer 
is to comply with those beliefs (Miller, 2005). Beliefs play important roles in performing 
the intention of consumers (Ajzen and Fishbein, 1985). In the context of Islam, a 
religious society adheres to the teachings of their Prophet Muhammad who embraced 
and displayed exemplary behavior to his followers. As a result, the influence of Prophet 
Muhammad will have a positive effect on subjective norm thus affecting the intention 
to behave accordingly (Rahim and Junos, 2012). Subjective norm deals with consumers’ 
motivation and behavior, which is constructed to incorporate the expectations of the 
approval or disapproval of others important to him or her (Chen, 2008). According 
to Rahim and Junos (2012), if consumers believe those people important to them 
think that products with halal label is essential, they will have a higher intention of 
purchasing such products. The influence of significant others will have a positive effect 
on subjective norm thus affecting the intention and behavior accordingly. 

Based on the TPB model, perceived behavioral control describes perceptions 
of the extent to which the behavior is considered to be controlled. It can account 
for considerable variance in behavioral intention and decision (Ajzen, 1991). The 
link between perceived behavioral control and behavior suggests that consumers are 
more likely to engage in behavior they feel they have control over and prevented 
from carrying out behavior over which they feel they have no control (Rezai et.al, 
2009; Rahim and Junos, 2012). 

Moslem’s intention to accept halal products is also determined by the control 
they feel they have over such behavior. Perceived behavioral control positively 
influence consumers’ intention toward accepting products by the religious society. 
For the religious society, accepting halal products is something that should be within 
their control. Consumers who consider themselves to be more or less Moslems, are 



 131

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

sometimes also primarily guided by the important factors attached to halal products 
such as whether it is easy or difficult to purchase or get the product and the ease or 
difficulty to consume the product (Rahim and Junos, 2012). Providing that when 
consumers believe they have more resources and opportunities needed such as time, 
money, skills, and control to perform religious obligation and the availability of the 
products (Ajzen, 1991; Miller, 2005; Rezai et.al, 2009; Rahim and Junos, 2012; 
Omar et.al, 2012). High perceived availability of halal products in a country may 
hinder consumers in that country from consuming other products (Rezai et.al, 
2009). Intention and decision to purchase halal products is higher when consumers 
perceive more control over purchasing these products (Omar et.al, 2012). 

Therefore, it can be concluded that a positive personal attitude towards the 
consumption of halal cosmetics and personal care products, the positive influence 
of other important people, the positive perceived behavioral control over consuming 
halal cosmetics and personal care products, will predict the consumers’ intention 
and their decision to purchase halal cosmetics and personal care products.

Methods

The method of analysis employed to the hypotheses in this research is 
Structural Equation Modeling (SEM). SEM is an analysis method employed to 
test structural models that depicts structural relationships between latent constructs. 
When this research is translated into the hypotheses model (see Figure 2), observed 
variables are drawn with the error terms for each latent variable. For the exogenous 
variables, attitude (x1) contains ten observed variables, while subjective norm (x2) 
and perceived behavioral control (x3) each one contains eight observed variables. 
For endogenous latent variables, halal cosmetics and personal care products purchase 
intention (y1) and purchase decision (y2), the observed variables of each, contains 
two variables. For structural equation model, the error of each item is drawn as 
unobserved variables in round circles.  

This research used convenience sampling method. Respondents were female 
Moslem consumers who live in South Jakarta and South Tangerang who already 
purchased and used Wardah brand as the halal cosmetics and personal care products. 
Wardah is one of the most popular halal cosmetics and personal care pro ducts brand 
in Indonesia. For cosmetics are included compact powder, two way cake powder, face 
powder, lipsticks, lip gloss, foundation, eyeliner, eye shadow, and make up remover. 
For personal care products are included lip balm, hand and body lotion, body butter, 
eau de toilette, body mist, roll on, facial wash, facial scrub, face toner, sun screen gel, 
oil massage, cream moisturizer and acne gel. Each respondents use minimum two 
items of these products for daily need. 



132
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

This research used questionnaires as instrument to obtain the primary data 
needed. The questionnaire consists of 5 point of Likert scale to evaluate the level of 
agreement of the respondents. There were 154 questionnaires distributed during the 
data collection period to target the respondents. The data was analyzed using Structural 
Equation Model (SEM), AMOS 22 version. From 154 observation number, there 
were 54 data profile causing outliers. After removing the outliers, there were 100 data 
used for this research. The next step was to see the level of normality data used. The 
result shows that the value of critical ratio (CR) of data multivariate is 2.484, which is 
in the range of -2.58 and 2.58, hence the data is normal. 

 Figure 2. Hypotheses Model Figure 3. Modification Model

Result and Discussion

Result

Respondents are female Moslem consumers who live in South Jakarta and 
South Tangerang area who already purchased Wardah brand as halal cosmetics 
and personal care products which are one of the most popular halal cosmetics and 
personal care products brand in Indonesia. Their age range averages is between 
20 to 35 years old (55%), above 35 years old is 40%, and only 5% under the 
age of 20. Respondents’ expenditure per month mostly average Rp.1,000,001 to 
Rp.2,500,000 (61%), followed by Rp.2,500,001 to Rp.5,000,000 (16%), 9% 
above Rp.5,000,000, and 14% are under Rp.1,000,000. 

This research also characterized the religious orientation of the respondents 
which consists of: (1) ignorant: I do not know how to pray; (2) less obedient: 
Sometimes I forget to pray; (3) moderate: I carry out my religious obligation as long 



 133

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

as able to do so; (4) obedient: I always try to perform my religious obligations; (5) 
very obedient: I always perform my religious obligations. The distribution shows 
that 40% of the respondents are obedient, 36% are moderate, and 22% are less 
obedient, and 2% very obedient.

In the scope of halal cosmetics and personal care products, the critical aspects 
comes from the production especially the sourcing of halal ingredients and the usage 
of permissible substances such as gelatin, placenta, collagen, etc. Halal cosmetics and 
personal care products must also be manufactured, stored, packaged, and delivered in 
conformity with Islamic religious requirements. According to the survey, 42% of the 
respondents do not understand the existence of potential non-halal ingredients and 
the usage of permissible substances in cosmetics and personal care products. Moreover, 
the survey also shows that 30% of the respondents often inspect the halal label on 
cosmetics and personal care products packaging before buying, while 41% rarely 
inspect the halal label, and 29% of them never inspect the halal label before buying.

 Confirmatory factor analysis (CFA) was conducted on every measurement 
model. The goodness of fit is the decision to see the model fit into the variance-
covariance matrix of the dataset. The CFA of measurement model has a good fit 
with the data based on assessment criteria such as Statistic Chi-Square (X2), CMIN/
df, p-value Goodness Fit Index (GFI), Normed Fit Index (NFI), Comparative Fit 
Index (CFI), PRATIO, Root Mean Square Error Approximation (RMSEA), and 
Root Mean Square Residual (RMR). 

Table 1. Goodness of Fit Model

Goodness of Fit 
Index

Cut-off 
Value*

Indicator Status Revised 
Indicator

Status 
(after Modification)

Chi-Square (X2) Closed to 0 1048.852 Poor Fit 675.926 Poor Fit

CMIN/ df <2 2.669 Poor Fit 1.827 Goodness of Fit

p-value > 0,05 0.000 Poor Fit 0.000 Poor Fit

GFI > 0.90 0.623 Poor Fit 0.740 Poor Fit

CFI > 0.90 0,788 Poor Fit 0.901 Goodness of Fit

NFI > 0.90 0,703 Poor Fit 0.809 Marginal Fit

PRATIO > 0.90 0,903 Goodness of Fit 0.851 Marginal Fit

RMSEA < 0,10 0,142 Poor Fit 0.091 Goodness of Fit

RMR < 0,10 0.130 Poor Fit 0.021 Goodness of Fit

*Source: Hair et.al (2006), Haryono and Parwoto (2012)



134
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

After several modification indices verifications (see Figure 3), the confirmatory 
factor analysis of measurement model in this research indicates four adequate 
goodness of fit model and two marginal fit (see Table 1). Thus, it means that the 
Theory of Planned Behavior model is fit and applicable to explain the influential 
factors involved in consumers’ decision to purchase halal cosmetics and personal 
care products.

Table 2. Construct Validity Measurement

Variable Indicator SLF Variable Indicator SLF Variable Indicator SLF

Attitude
(x1)

x11 .549 Subjective 
norm (x2)

x21 .575 control (x3) x33 .866

x12 .739 x22 .547 x34 .827

x13 .672 x23 .549 x35 .825

x14 .813 x24 .567 x36 .906

x15 .859 x25 .908 x37 .823

x16 .843 x26 .926 x38 .816

x17 .843 x27 .842 Purchase 
intention (y1)

y11 .929

x18 .838 x28 .831 y12 .927

x19 .870 Perceived 
behavioral

x31 .714 Purchase 
decision (y2)

y21 .750

x110 .659 x32 .754 y22 .826

SLF: Standardized Loading Factor

Before the hypotheses can be tested, another step of analysis required is 
testing the construct validity of the measurement used in this research. Good 
construct validity of the instrument must be established before any conclusion 
about the causal relationship among constructs can be determined. The result 
showed a construct validity measurement model with all standardized loading 
factors greater than 0.5 (see Table 2). It means that construct validity of all items 
are established.

Before discussing the hypotheses result, this research also used descriptive 
statistics test to describe the consumers’ behavior level by using mean value as the 
type of estimate of central tendency (Ghozali, 2011; Morgan et.al., 1999). Table 3 
below shows that consumers have high level of attitude, subjective norm, perceived 
behavioral control, intention and decision to purchase halal cosmetics and personal 
care products with mean value from 4.22 to 4.32. 



 135

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

Table 3. Descriptive Statistics

N Min. Max. Mean* Std. Dev.

Attitude 100 3.80 5.00 4.3190 .39764

Sub. Norm. 100 3.47 5.00 4.2247 .36222

PBC 100 3.62 5.00 4.2262 .35864

Intention 100 3.65 5.00 4.2255 .35460

Decision 100 3.64 5.00 4.2219 .35707

Valid N (listw.) 100

*Level: 1 – 2 = very low, 2.1 - 3 = low, 3.1 – 3.5 = Average, 3.6 – 4.5 = high, 4.6 – 5 = very high

After all assumptions are fulfilled, the hypotheses proposed in this research 
can be tested. The result of data analysis from the regression weight structural 
equation model (Table 4) shows that this research has established five direct causal 
effects: perceived behavioral control and purchase intention, attitude and purchase 
decision, subjective norm and purchase decision, perceived behavioral control and 
purchase decision, purchase intention and purchase decision. 

Table 4. Regression Weight

Estimate S.E. C.R. P Status

y1 <--- x1 .165 .151 1.092 .275 Not significant

y1 <--- x2 .080 .075 1.072 .284 Not significant

y1 <--- x3 .578 .102 5.672 *** Significant

y2 <--- x1 .374 .114 3.270 .001 Significant

y2 <--- x2 .208 .051 4.115 *** Significant

y2 <--- x3 .365 .089 4.108 *** Significant

y2 <--- y1 .228 .085 2.674 .008 Significant

This research also presents three indirect effects (see Table 5). However, 
compare with the result in Table 6, each direct effect of attitude, subjective norm 
and perceived behavioral control is greater than its indirect effect. Thus indirectly, 
purchase intention is not an intervening variable. It does not mediate each 
relationship between attitude, subjective norm, nor perceived behavioral control 
with consumers’ purchase decision.



136
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Table 5. Standardized Direct Effects Table 6. Standardized Indirect Effects

Direct  Effect Indirect  Effect

x1 x2 x3 y1 y2 x1 x2 x3 y1 y2

y1 .111 .100 .661 .000 .000 y1 .000 .000 .000 .000 .000

y2 .260 .269 .430 .235 .000 y2 .026 .023 .155 .000 .000

Discussion

The result shows that the Theory of Planned Behavior is applicable to explain 
the influential factors involved in consumers’ decision to purchase halal cosmetics and 
personal care products. Since consumer demand is defined as consumers’ willingness and 
ability to purchase a quantity of products in a given period of time (Economicsonline, 
2016), hence this research can predict consumers demand on halal cosmetics and 
personal care products in Indonesia market as in line with the influential factors involved 
in consumers’ purchase decision on halal cosmetics and personal care products. 

The result indicates that attitude, subjective norm, perceived behavioral 
control and intention directly affect consumers’ decision to purchase halal cosmetics 
and personal care products. However, indirectly, consumers’ purchase intention is 
not an intervening variable. It implies that even though consumers have the intention 
to purchase halal cosmetics and personal care products, but that do not necessarily 
mean they really going to purchase the products. Only perceived behavioral control 
directly affect both consumers’ intention and consumers’ decision to purchase. It 
is also the most dominant one. Thus, marketers should focus on the motivational 
factors driving the product acceptance process which primarily are guided whether 
it is easy or difficult to purchase or get the product. It means that intention and 
decision to purchase halal cosmetics and personal care products will be higher 
if consumers perceive more control to perform their religious obligation over 
purchasing or consuming only halal products, if consumers have sufficient resources 
and opportunities needed, like money, time and the availability of the products. 

The intention and decision to purchase the products will be higher if 
consumers have enough money to buy the products or the products are affordable 
for them. It is suggested that manufacturers and marketers need to enhance their 
market segmentation by dividing a broader target market into subsets of consumers 
so that consumers from lower economy class are able to purchase the products at 
affordable prices. The intention and decision to purchase the products will also be 
higher if consumers have enough and convenient time to get the products or the 
products are available in many stores. It is suggested that suppliers need to expand 
their distribution channel. The products should be easily available to consumers in 



 137

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

various types of shops, not only in malls or drugstores but also in convenient stores 
or minimarkets nearby the consumers’ homes, offices or colleges. 

For the religious society like Indonesia, accepting halal products is something 
that should be within their control. Halal-haram issue is important for Moslem 
consumers as related to their religious beliefs because Islamic teachings considers food 
and other products that are consumed or used by humans as a matter of urgency 
in addition to worshiping God. The higher the consumers’ religious behavior, the 
higher the intention to purchase halal-labeled products (Aisyah, 2014). Consumers who 
consider themselves to be more or less Moslems, are primarily guided by the important 
factors attached to a product like halal label. Halal label is the attribute that is believed 
and considered as an important matter by Moslem consumers. Empirically, consumers’ 
religious behavior which consists of hablumminallah behavior (relationship with 
God) and hablumminannas behavior (relationship among human beings) positively 
affect consumers’ decision to purchase halal-labeled cosmetics (Aisyah, 2015). Islamic 
teachings considers everything that is consumed or used by humans will have a major 
impact on human physical and spiritual development. Physical impacts of consuming 
unlawful goods will be bad for human health, regardless of his religion. While spiritual 
impact of consuming unlawful goods cannot be measured from material only because 
the consequences of violating Islamic law will have an impact on having miserable life 
on earth and punishment in the hereafter. Hence, halal label as an attribute or element 
of a product is believed and considered essentially by Moslem consumers to ensure 
that the product they used or consumed is halal guaranteed. 

In this research, since consumers have high level of attitude, subjective norm 
and perceived behavioral control to perform their religious obligation which have 
highly influenced to their intention and decision to purchase halal cosmetics and 
personal care products, marketers should focus on promoting various below the line 
campaigns to Moslems community such as in Islamic colleges and women’s majelis 
taklim. Majelis taklim are regular gatherings for religious learning and performance 
that have become widespread among Moslems in contemporary Indonesia, gaining 
prominence also in public discourse about national religiosity. The rapid increase 
of majelis taklim over the last decade, particularly among Moslem women, has 
been linked to the Islamic revival in Indonesia as a global trend involving Moslem 
populations worldwide engaging more overtly with issues of religious identity and 
practice (Winn, 2012). Therefore, women’s majelis taklim or many other religious 
gathering from different economic classes in Moslem societies are potential locations 
for marketers to promote their new halal cosmetics and personal care products line. 

The increasing global demand in halal cosmetics and personal care products is 
in trail with the growing interest and concerns of Moslems relating to the halal status. 



138
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Many of them are challenging the industry on the origins of the ingredients of these 
products and whether they are compliant with an Islamic lifestyle. Halal cosmetics 
and personal care products should not only be free from haram constituents, but 
they should also be tayyib which is a term given to goods and products which meet 
quality standards. In general, tayyib refers to products that are clean, pure and 
produced based on standard processes and procedures. Thus, cosmetics and personal 
care products should not only be halal, but should also be judged clean according to 
Sharia law (Elasrag, 2016).

The phenomenon of legalizing halal product does not only become the local 
and national business trend but also international one. Based on the findings, the 
more favorable the consumers’ attitude, subjective norm, perceived behavioral 
control, and consumers’ intention, the greater their decision to purchase halal 
cosmetics and personal care products. Thus, it is recommended for renowned local 
and international brands to consider adding halal label in to their cosmetics and 
personal care products line, so that Moslem consumers in Indonesia, from upper 
or middle economy class as their target markets, could ensure that the products 
they use, despite manufactured from non-Moslem countries, remain guaranteed its 
halalness or permissible accordingly to Islamic law. 

The establishment of Codex, IFANCA and AQIS is the real manifestation 
of halal product legalization (Said and Elangkovan, 2013). According to Elasrag 
(2016), the global halal market has emerged as a new growth sector in the global 
economy and is creating a strong presence in developed countries. The most 
promising halal markets are the fast–growing economies of the Asia, Middle East, 
Europe and America. With a growing consumer base, and increasing growth in 
many parts of the world, the industry is set to become a competitive force in world 
international trade. The halal industry has now expanded well beyond the food 
sector further widening the economic potentials for halal.

The emerging halal cosmetic and personal care market is seen as the next in 
line for growth after the lucrative halal food sector. According to a Thomson Reuters 
report, State of the Global Islamic Economy 2014-2015, the global expenditure of 
Moslem consumers on food and lifestyle sectors grew 9.5 per cent from previous years’ 
estimates to US$2 trillion (RM8.3 trillion) in 2013 and is expected to reach US$3.7 
trillion by 2019, at a compound annual growth rate of 10.8 per cent (Rasid, 2016). 

The main driver for this huge demand in halal cosmetics and beauty products 
stems from the demographic of young, religiously conscious, and dynamic professional 
Moslem population. In the scope of halal cosmetics, the concept covers critical 
aspects of production such as halal ingredients and usage of permissible substances 
which must be manufactured, stored, packaged and delivered in conformity with 



 139

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

Sharia requirements. Interestingly, halal cosmetics has also gained momentum 
amongst modern consumers who are eco-ethical conscious and are willing to pay a 
premium for organic, natural and earthy cosmetics products to suit their modern 
lifestyle. Halal products have developed far beyond a novelty. Capitalizing on the 
burgeoning halal cosmetics market, a number of cosmetic companies are beginning 
to develop this market by producing halal-certified product lines that contain no 
animal ingredients, and not tested on animals to meet the growing demand of 
consumers who simply want more assurance that the cosmetics they are using are 
healthy and sustainably sourced (Elasrag, 2016). 

In Indonesia, halal certification is provided by MUI (Indonesia Ulama’ 
Assembly). MUI halal certification is recognized internationally (Salehudin and Luthfi, 
2011). According to MUI, the increasing of technological developments is allowing 
the use of unlawful substances as raw materials, additives or auxiliary materials in 
variety of processed products. Consequently, the halalness of the products becomes 
unclear or doubtful. That is why MUI Fatwa Commission concluded that all processed 
products is basically doubtful and needs to be studied or explored furthermore before 
setting the status of its halal illegitimate, to provide certainty and reassuring Moslem 
consumers to practice their religious teachings (Amin, 2013). Based on Indonesian 
Halal Product Protection Act, only products that have halal certificates are allowed 
to put halal labeling on their packaging. Therefore, in order to penetrate Indonesia 
market it is important for local companies and overseas to label and certify their 
cosmetics and personal care products line with MUI halal label and certification. 

Conclusion

It can be concluded that the Theory of Planned Behavior can be applied 
to predict consumers demand on halal cosmetics and personal care products in 
Indonesia as well as in global halal market. Consumers’ attitude, subjective norm, 
perceived behavioral control and intention directly affect consumers’ decision 
to purchase halal cosmetics and personal care products. Indirectly, consumers’ 
purchase intention is not an intervening variable, thus even though consumers have 
the intention to purchase halal cosmetics and personal care products, but that do 
not necessarily mean they really going to purchase the products. The more favorable 
the attitude, the stronger the subjective norm, the greater the perceived behavioral 
control, the stronger the consumers’ intention, will influencing consumers to have a 
strong decision to purchase halal cosmetics and personal care products. 

Since consumers have high levels of attitude, subjective norm, perceived 
behavioral control, intention and decision to purchase, it implies that consumers 
in Indonesia have a high demand of halal cosmetics and personal care products. 



140
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Halal cosmetics have become a global need. According to Elasrag (2016) and Rasid 
(2016), the market for halal cosmetics is booming in the Middle East and Asia. 
Across the Middle East, halal cosmetics are registering a 12% annual growth reaching 
USD12 billion in total value of cosmetic related sales. Markets in Asia, particularly 
Malaysia and Indonesia as well as Europe, have seen a surge in interest in halal 
cosmetics. However, the global cosmetics industry is dominated, and to a certain 
degree monopolized, by non-Moslems companies. This poses serious challenges to 
the issue of halal ingredients in cosmetic products manufactured by the companies. 
Hence, it is important for local companies to enhance and provide their cosmetics 
and personal care products lines with halal label and certification, as this segment 
has high potential growth in Indonesia (196 million Moslems), as well as at overseas 
markets such as India (133 million Moslems), Pakistan (125 million Moslems), 
Bangladesh (104 million Moslems) and China (133 million Moslems). 

A challenge to further develop this halal sector is on how to best integrate halal 
cosmetics into the framework of the global beauty industry. According to Elasrag 
(2016), active collaboration with key parallel interest groups such as organic, vegan, 
ethical and environmental rights may be key to further strengthen the value of halal 
cosmetic products in the global market. Hence, Indonesia could potentially become 
the global halal hub for the  cosmetics and personal care products industry, as it is rich 
in natural herbs and botanical products which can be researched and incorporated 
as key ingredients in halal cosmetics and personal care products development. 

References

Abd Jabar, F. et. al. (2012). A Study on The Relationship between Awareness and 
Knowledge of Moslem Retailers toward Halal Cosmetics Products. Proceedings 
of the International Conference on Science, Technology and Social Sciences: 383-388.

Aisyah, M. (2014). The Influence of Religious Behavior on Consumers’ Intention 
to Purchase Halal-Labeled Products. Business and Entrepreneurial Review. Vol. 
14 (1): 15-32

Aisyah, M. (2015). Peer Group Effects on Moslem Consumer’s Decision to Purchase 
Halal-Labeled Cosmetics. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal 
of Islamic Economics). Vol. 7 (2): 165-180

Ajzen, I. (1985). From Intention to Action: A Theory of Planned Behavior, in J. 
Kuhi and Beckman.J. (Eds), Action Control: From Cognition to Behavior, 
pp.11-39. Heidelberg: Spinger, New York.

Ajzen, I. (1991). The Theory of Planned Behavior, Organizational Behavior and 
Human Decision Processes, Vol.50: 179-211.



 141

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

Muniaty Aisyah: Consumers Demand on Halal Cosmetics

Ajzen, I. (2006). Behavioral Interventions Based on the Theory of Planned Behavior, 
Brief Description of the Theory of Planned Behavior, retrieved from http://citeseerx.
ist .psu.edu/viewdoc/download?doi=10.1.1.613.1749&rep=rep1&type=pdf

Ajzen, I (2008). Consumer Attitudes and Behavior, in C.P. Haugtvedt, P.M. Herr 
and F.R.Cardes (Eds), Handbook of Consumer Psychology:. 525-548. New 
York: Lawrence Erlbaum Associates.

Ajzen, I. & M. Fishbein. (1975). Belief, Attitude, Intention and Behavior: An 
Introduction to Theory and Research. Reading, Mass: Addison-Wesley. 

Ajzen, I. & M. Fishbein. (1985). Attitude Behavior Relations: A Theoretical Analysis 
and Review. Empirical Research and Psychological Bulletin, Vol.84 (5):888-918. 

Amin, Ma’ruf. (2013), Islam Menghalalkan yang Baik dan Mengharamkan yang 
Buruk, Jurnal Halal LPPOM MUI, No.104 Th.XVI: 28-297.

Chang, M.K. & W. Cheung. (2001). Determinants of Intention to Use Internet/www 
at Work: A Confirmatory Study. Information and Management, Vol. 39: 142-160.

Chen, M.F. (2008). An Integrated Research Framework to Understand Consumer 
Attitudes and Purchase Intentions toward Genetically Modified Foods. 
British Food Journal, Vol.110 (6): 559-579.

Eagly, A.H. & S. Chaiken. (1995). Attitude Strength, Attitude Structure and 
Resistance to Change, in K. Bonne, I. Vermeir, F. Bergeaud-Blacker, and W. 
Verbeke, Determinants of Halal Meat Consumption in France. British Food 
Journal. Vol. 109 (5): 367-386.

Economicsonline. (2016). Consumer Demand and Price, Competitive Market, 
retrieved from http://www.economicsonline.co.uk/Competitive_markets/
Consumer_demand.html. 

Elasrag, H. (2016). Halal Industry: Key Challenges and Opportunities, Munich 
Personal RePec Archive (MPRA) Paper No.69631.

Ghozali, I. (2011). Multivariate Analysis Application with IBM SPSS 19 Program. 
Semarang: BP Undip.

Hair, J.F., et. al. (2006). Multivariate Data Analysis, (6.Eds). New Jersey: Pearson 
Education. 

Haryono, S. & W. Parwoto. (2012). Structural Equation Model for Management 
Research Using Amos 18.00. Jawa Barat: PT. Intermedia Personalia Utama.

Lada, S. et. al. (2009). Predicting Intention to Choose Halal Products using Theory 
of Reasoned Action, International Journal of Islamic and Middle Eastern 
Finance and Management, Vol.2 (1): 66-67. 

MarkPlus. (2016). Halal and Herbal – The Two Emerging Buzzwords in Indonesia’s 
Cosmetics Market, MarkPlus Inc.: Knowledge, Insight, Solution, January 12, 



142
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) 
Vol. 9 (1), January 2017

http://journal.uinjkt.ac.id/index.php/iqtishad
DOI: 10.15408/aiq.v9i1.1867

2016, retrieved from http://www.markplusinc.com/halal-and-herbal-the-
two-emerging-buzzwords-in-indonesias-cosmetics-market/.

Miller, K. (2005). Communication Theories: Perspective, Processes, and Context. New 
York: McGraw-Hill.

Morgan, G. A. et. al. (1999). Measurement and descriptive statistics. Journal of the 
American Academy of Child & Adolescent Psychiatry. Vol. 38 (10): 1313-1315.

Mughal, Ahmed Saeed. (2003). More on Synthetic Alcohol, retrieved from http://
www.albalagh.net /letters/synthetic_alcohols.shtml

Mursyidi, A. (2013). Chemical Analysis Authentication Role in Halal and Food 
Pharmaceutical Products. Journal of Food and Pharmaceutical Science. Vol.1: 1-4.

Omar, K.M. et. al. (2012). The Direct Effects of Halal Product Actual Purchase 
Antecedents among the International Moslem Consumers. American Journal 
of Economics. Special Issue, June 2012: 87-92.

Rahim, N.A. & S. Junos. (2012). The Halal Product Acceptance Model for The 
Religious Society, Business and Management Quarterly Review, Vol. 3(1): 17-25.

Ramli, N.S. (2015). Great Demand for Halal Cosmetics, The Star Online, 
13 March 2015, retrieved from http://www.thestar.com.my/opinion/
letters/2015/03/13/great-demand-for-halal-cosmetics/.

Rasid, A.H. (2016). Global Halal Market Growing Bigger. New Straits Times Online. 
Friday, 23 September 2016.

Rezai, G, et. al. (2009), Concerns for Halalness of Halal Food Products among 
Moslem Consumers in Malaysia: Evaluation of Selected Demographic 
Factors. Economic and Technology Management Review, Vol. 4: 65-73.

Said, M.M. & K. Elangkovan. (2013). Halal Label and the Ethics of Business: 
An Analytical View from Producers. Australian Journal of Basic and Applied 
Sciences. Vol. 7(6): 613-621.

Salehudin, I. & B.A. Luthfi. (2011). Marketing Impact of Halal Labeling towards 
Indonesia Consumer’s Behavioral Intention. Asean Marketing Journal, Vol. 3 
(1): 35-43.

Soesilowati, E.S. (2010). Behavior of Moslems in Consuming Halal Foods: Case of 
Bantenese Moslem. Sharia Economics Research Seminar. LIPI, 6 July 2010.

Winn, P. (2012). Women’s Majelis Taklim and Gendered Religious Practice in Northern 
Ambon. Intersections: Gender and Sexuality in Asia and the Pacific. Issue 30, 
November 2012.

Yoe, B.L, et. al. (2016). Study of Malaysian Customers Purchase Motivation of Halal 
Cosmetics Retail Products: Examining Theory of Consumption Value and 
Customer Satisfaction. Procedia Economics and Finance, No.37: 176 – 182.


