Pesantrens as a growing market for halal cosmetics: exploring consumer potential and ecosystem development in Indonesia

Purpose This study aims to describe the potential of pesantrens (Islamic Boarding Schools) as a halal cosmetics market. The halal cosmetics market has the lowest customer spending compared to other sectors in the halal industry. Hence, an effort needs to be made to find new potential markets, and pesantrens, with their more modern performance, can be an alternative to the halal cosmetics market. Design/methodology/approach This research uses a qualitative method with a type of exploratory case study. Data were collected through in-depth interviews with santri (students who live in pesantrens) and boarding school managers, observations and documentation. Findings After evolving into a modern institution, pesantrens, which has been known as nothing more than an Islamic religious education institution, has considerable potential to support the development of the halal industry, especially in the halal cosmetics sector. The good halal knowledge of the santri, commitment to a halal lifestyle and pesantrens’ regulations on the obligation to use halal cosmetics are very strong supporting factors for the demand for halal cosmetics, and this demand is quite large because of the large and growing number of pesantrens and santri. Originality/value This study offers new insights that Islamic educational institutions such as pesantrens, which have been underestimated, have great potential to become a new market for halal cosmetics. The flexibility of pesantrens regulations regarding the permissibility of cosmetics is an entry point for this industry to grow, especially in a pesantrens atmosphere with strong religiosity. This research provides valuable ideas for halal cosmetics business players and contributes to the literature on halal cosmetics and pesantrens.