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Food & Beverage
Glam Halal | May-June . 2021
THE halal food and beverage ( F & B ) sector is a mainstay for 2.1 billion Muslims and an increasing number of non- Muslims worldwide . Despite the scale of this market , there is a gap in the halal food supply chain . Nearly 40 per cent of all food and beverage consumed by Muslims worldwide is not authentically certified as halal .
According to the State of the Global Islamic Economy Report 2020 / 21 , the halal economy in 2019 accounted for around US $ 2.02 trillion ( RM 8.34 trillion ) of consumer spending . Muslims spent an estimated US $ 1.17 trillion ( RM4.83 trillion ) on food .
A profoundly uncomfortable statistic and even more so when considering the level of dependency the Gulf Cooperation Council ( GCC ) has on halal imports .
Every year , the GCC imports approximately US $ 30 billion ( RM123.89 billion ) of processed and agro-based halal produce . GCC imports US $ 6 billion ( RM24.78 billion ) of meat , of which US $ 3 billion ( RM12.39 billion ) is from the Americas .
The UAE alone imports US $ 1.3 billion of meat in support of a demanding consumer retail and F & B sector .
Finding a credible solution to this troubling authenticity gap requires a deeper understanding of the halal food supply chain . In simple terms , the global halal production sector is not fit for purpose .
Non-Muslim food producers have scaled into well-regulated giants . However , halal F & B production is populated by a sprawling community of small businesses that often fall a long way short of halal certification requirements .
The transformation of the global halal supply chain is well overdue . Still , a new era
Need to consolidate
Halal food market has to meet GCC demand
According to the State of the Global Islamic Economy Report 2020 / 21 , the halal economy in 2019 accounted for around US $ 2.02 trillion ( RM 8.34 trillion ) of consumer spending . Muslims spent an estimated US $ 1.17 trillion ( RM4.83 trillion ) on food . ” of robust , scaled production and regulation is within our grasp .
The global Kosher F & B sector is valued at US $ 25 billion ( RM103.24 billion ), catering to a Jewish community of approximately 15 million people . While this market is a tiny fraction of the global halal sector , it is served by large and mature companies like Empire and Kayco . Each has over US $ 100 million ( RM412.95 million ) in annual revenues .
By comparison , 2.1 billion Muslims rely on small-scale producers , with North America playing a pivotal role . Key halal brands in North America , like Crescent Foods and Al Safa , barely exceed US $ 50 million in revenue .
According to Arabian Business , addressing this inconsistency is both urgent and laden with opportunity . More focused and ‘ handson ’ investment in the halal food sector is an idea whose time has come . The inherent benefits to the GCC go far beyond the immediate problem of authentic provenance .
GCC countries are united in their domestic economic focus on diversification and job creation . What if the GCC could take the reins of the global halal sector and deliver the change as to how it desperately needs ?
There is no reason why the GCC cannot become a global hub for halal food production . According to Alpen Capital , it can begin to address F & B self-sufficiency , which was calibrated in 2016 at just 25.2 per cent and only 10 per cent in the UAE .
Scale is both the nexus of the problem and the solution . Investment in selected Halal food businesses overseen by Halal F & B specialists can transform a small and informal production community into scaled , mature and highly regulated concerns .
For the investment community , there is an immediate potential $ 1 trillion opportunity to plug a US $ 545 billion halal food authenticity gap that continues to undermine consumer trust . Nor is this a static market .
According to Pew Research , demand is on an inexorable growth path , given the global Muslim population is projected to grow by approximately 40 per cent to 2.2 billion between 2010 and 2030 . Nor does this account for burgeoning demand for Middle Eastern F & B from non-Muslim consumers .
In a world where the heads of so many investors are turned by technology investments , it ’ s easy to understand why minimal attention has been paid to the Halal sector . However , numbers seldom lie . Halal F & B is a precious few remaining opportunities to capture enormous value by consolidating a fragmented global industry ripe for growth .
Halal Angels Network partners with UAE-based FasterCapital
A UAE – based company , Halal Angels Network , is among the first to penetrate the US $ 5 trillion halal consumer market . It has teamed up FasterCapital to support technology startups in AI , Blockchain , Robotics , IoT , Fintech .
Halal Angels Network launched ‘ The Khadija RA Initiative ’, the world ’ s largest Cohort , Incubation & Acceleration programme aiming for 1001 Female Entrepreneurs .
In collaboration with FasterCapital , Halal Angels Network will be able to reach and support entrepreneurs in getting funded and in moving forward with their innovative projects and businesses .
FasterCapital is an organisation that offers a wide range of services
( technical , sales , marketing , funding , and others ).
According to Reuters , Halal Angels Network was launched to promote innovation , entrepreneurship and startups , and inspire investors across the world to tap into a sector that will be worth US $ 9.71 trillion by 2025 .
The founder of FasterCapital , Hesham Zreik said : “ FasterCapital will be glad to work with Halal Angels . We will support entrepreneurs in getting funded and moving forward with their innovative projects and businesses . FasterCapital will be glad to offer technical and business support to startups working with Halal Angels ”.
Indian American Dr Tausif Malik , founder of Halal Angels Network , said : “ The halal & ethical industry offers tremendous opportunities across the Middle East , North Africa and South Asia . Based on the vision , experience and expertise , we felt that FasterCapital is the right partner to support startups ”.
Based on research , Halal Angels proposed that post-Brexit , UK could reposition as the global hub & gateway to Ethical & Shariah Finance to the world . Halal Angels are moving its headquarters to the UK . This would help connect with Global investors to startups worldwide , and Italy can also benefit from this .
Both Halal Angels Network and FasterCapital will support technology startups in the ethical and halal domains .