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@ Halal | July-August. 2025

• The halal economy is experiencing rapid growth across multiple sectors- including food, pharmaceuticals, cosmetics, and medical devices.

• The pharmaceutical, cosmetic, and medical device industries are positioned to be the next major drivers of halal economic growth.

• To capitalise on this moment, stakeholders must collaborate to promote research, develop halal solutions, and establish clear standards.

After decades of being treated as a niche, faith-linked segment, halal has matured into a primary value offering food, finance, travel, pharmaceuticals, cosmetics, and even medical technology.

Demand is no longer confined to Muslim-majority markets; transparency, ethical sourcing, animal welfare, and clean-label expectations are pulling non-Muslim consumers into halal value chains as well. The sun is out. It is time to make hay.

' CLEAR SKY ' MOMENT

Compelling demographic and economic data strongly support this period of unparalleled opportunity. New demographic research from the Pew Research Centre shows that the global Muslim population increased from approximately 1.7 billion in 2010 to about 2.0 billion in 2020, representing an impressive rise of 21 per cent that boosted Islam ' s share of the world population from around 24 per cent to roughly 26 per cent.

This growth is primarily driven by a younger median age and higher fertility rates, suggesting that Muslims will continue to represent one of the fastest-growing major consumer blocs worldwide( Hackett et al., 2025).

Building on this demographic shift, market analysts monitoring halal consumer spending report annual expenditures reaching into the trillions. According to DinarStandard( 2024), a consolidated industry overview, halal consumption has experienced rapid scaling over the past decade, transforming from a niche segment into a multi-trillion-dollar mainstream market.

Complementing these food sector figures, DinarStandard( 2024) highlights steady year-on-year growth in Muslim consumer spending across all sectors of the Islamic economy. It also underscores how regulatory har-

BY NURHUSNA SAMSUDIN

BY NURRUL IZZATI MAHMUD

International Institute of Halal Training and Research( INHART) International Islamic University Malaysia monisation, digital trade, and ethical branding are driving investment into halal-related sectors such as pharmaceuticals, cosmetics, and medical devices, further broadening the halal economy ' s footprint.

Furthermore, recent independent market research disseminated via GlobeNewswire estimates the global halal food market at approximately US $ 2.71 trillion for 2024. It projects a robust expansion to approximately US $ 5.91 trillion by 2033, reflecting an impressive compound annual growth rate( CAGR) of around 8.9 per cent( GlobeNewswire, 2025).

Taken together, these figures signal sustained, almost double-digit growth in an already huge consumer base, showing just how important the halal market has become in the global economy.

DEMAND TO DIRECTION

With demand surging, regulatory frameworks maturing, and investor attention increasingly aligned with ethical and sustainable products, now is the time for halal industry players to act strategically. If stakeholders " make hay while the sun shines ", three high-impact, science-driven sectors- pharmaceuticals, personal care, and medical devices- are particularly well-positioned to drive the next wave of halal economy growth beyond food.

First and foremost, a healthcare imperative with market momentum, the Halal Pharmaceutical. As Muslimmajority nations rise in healthcare spending, the demand for halal-certified pharmaceutical products such as vaccines, biologics, over-the-counter( OTC) medicines, and therapeutic injectables has become increasingly urgent.

This stems from growing public awareness and regulatory calls to eliminate non-halal components such as porcine-derived gelatine, alcohol-based solvents, and enzymes of uncertain origin in medicines. Recent analyses by Business Research Insights( 2025) suggest that the global halal pharmaceutical market is expected to grow at a strong double-digit compound annual growth rate( CAGR) through the 2030s.

This growth aligns with the broader healthcare market expansion in Organisation of Islamic Cooperation( OIC) countries, driven by rising population, chronic disease burdens, and increasing health literacy.

Next is halal cosmetics, where ethics meet everyday rituals. In the world of beauty and self-care, halal products are establishing a strong identity by combining ethical assurance, ingredient transparency, and spiritual mindfulness.

According to Fortune Business Insights( 2024), the global halal cosmetics and personal care market is valued at US $ 47.76 billion and is projected to more than double, reaching US $ 115 billion by 2032, growing at a CAGR of approximately 11.7 per cent.

The Asia-Pacific region leads the charge, thanks to large Muslim populations and rising middle-class consumption. This growth is also supported by changing consumer values, where Muslim and non-Muslim consumers alike are increasingly drawn to alcohol-free, cruelty-free, and ethical beauty brands, creating crossover potential with vegan, organic, and sustainable segments.

Major brands like Wardah( Indonesia) and Safi( Malaysia) have successfully combined faith-based branding with modern marketing and product innovation, capturing sizeable market shares across Southeast Asia and the Middle East.

Finally, halal medical devices are the sleeping giant of ethical innovation. While often overlooked, the halal medical device sector is emerging as a high-potential frontier. Medical technology that ranges from single-use surgical tools to implants and patienttouch materials frequently involves animal-derived ingredients, adhesives, and sterilisation processes that may conflict with halal requirements.

Malaysia has taken the global lead by launching MS 2636:2019, the world ' s first halal medical device standard. This framework provides clear guidelines for manufacturers, signalling regulatory readiness to facilitate halal certification in this critical healthcare segment.

Experts and policymakers highlight that companies that adopt halal standards early may gain a decisive advantage. Meanwhile, the conventional medical device market is booming; this projection opens up significant space for halal-compliant innovations, particularly in disposables, orthopaedic implants, wound care materials, and hospital supplies.

Together, these three scienceintensive verticals( pharmaceuticals, cosmetics, and medical devices) offer not just economic potential but also ethical leadership in the halal economy. By investing now, while demand, rules, and health trends are in sync, companies can secure their place in building a more ethical and inclusive global market.