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@Halal | april-may. 2019
Business
Overview
An
on global halal market
The world is witnessing a gradual
shift towards halal goods and
services in several sectors; including
food, travel, finance and cosmetics,
among others
T
he world’s Muslim population
is approaching 1.6 billion, and
are expected to account for 30%
of the world’s population by
2025. For now, there are around
1.3 billion Muslims in the world
and around 1.5 billion halal consumers, which
means one out of every four human beings
consumes halal products.
The 0.2 billion difference between the
consumers and the total population is
accounted for by non-Muslims living in
Muslim-majority countries where most foods
are halal, such as Indonesia and Bangladesh.
The world is witnessing a gradual shift
towards halal goods and services in several
sectors; including food, travel, finance and
cosmetics, among others.
An increased demand
for Halal products
The past year has seen an increased global
demand for ethical, sustainable, environ-
mentally and socially responsible goods and
services which drives the growth of the halal
market. And the demand isn’t just among
Muslims but also showing growing accep-
tance by non-Muslim consumers.
Involvement of government and private
bodies has contributed to the sustainability of
the halal ecosystem through certification by
religious authorities as well as implementa-
tion of policies, which then help boost the
The halal industry is
growing steadily, and
it is gaining traction
among industry players
worldwide.
industry. Religious authorities of several
countries are also working together towards
establishing a global halal standard which
would ensure an even more sustainable
industry going forward.
Growing market
As Islam continues to be the second larg-
est religion in the world, the halal product
market is expected to grow from USD45.3
billion in 2016 to over USD58.3 billion by 2022.
The largest sector of the global halal indus-
try goes to Islamic finance, with a 43 percent
share of the market, followed by halal food
with a 36 percent market share.
The global market revenue of halal food is
projected to rise from about USD1.25 trillion in
2016 to about USD2.57 trillion in 2024, with the
largest share of the market value coming from
North America. Some of the biggest growth
opportunities for the global halal market
include branding halal food as healthy and
producing organic halal food.
As the global market for halal foods
grows, there will be an increasing demand
from countries that do not have the means
to produce sufficient quantities of their own
halal food.
The leading importers of halal food in
2015 among the Organisation of Islamic
Cooperation (OIC) countries were Saudi
Arabia, Malaysia, and United Arab Emirates,
with one of the most popular imported
foods being beef. Brazil was the top exporter
of halal meat in that same year, followed by
Australia and India.
The majority of the global Muslim nations
are among OIC member countries, and the
global halal food market is on the threshold
of major developments that hold the promise
of rapid and sustained growth.
More than just food
With the halal food market currently
accounting for as much as 12 percent of global
trade in agri-food products, a major increase
in demand will generate growth opportuni-
ties throughout the agri-food industry. Many
reports on the halal market focus on meat
and meat products, but products sold under
the halal label cover virtually every agri-food
product as well as non-food products such as
cosmetics.
Malaysia is one of the most suitable
example of halal certifications granted to not
just food products. Cosmetics and pharma-
ceutical products are among that looks for
halal certification.
By category, food and beverage holds the
biggest share in the halal industry. In the
Global Islamic Economic Report, the halal
food and beverage consumption is valued at
USD1.24 trillion. The halal pharmaceuticals
and cosmetics sector is said to be growing
with the innovation of halal nail polish and
makeup.
Halal cosmetics had a global market value
of approximately 20 billion U.S. dollars in 2015
and are expected to reach 54 billion U.S. dollars
in 2022. Muslims spend on pharmaceuticals
is forecast to reach USD132 billion by 2022.
Pharmaniaga, a Malaysian pharmaceutical
company is set to invest RM100 million to
develop halal and cost-effective vaccines for
the public.
Halal tourism rising
Halal tourism grows on firmer footing in
2017. Key market players have conceded that
more countries are catering to halal require-
ments such as having prayer areas in tourist
locations and airports, more halal options for
food & beverages and itineraries catered to
the Muslim tourists.
Faeez Fadhlillah of TripFez stated that
revenue for the company has superseded
the original 300% projected growth, and the
company has indexed 55,000 accommodation