@Halal November/December 2024 | Page 24

24 Column

24 Column

@ Halal | November-December . 2024

Pathway to ethical growth

Halal has become synonymous with purity , cleanliness and quality
BY ANIS NAJIHA AHMAD
AND
YUMI ZUHANIS HAS-YUN HASHIM
International Institute for Halal Research and Training ( INHART ) International Islamic University Malaysia

THE HALAL market has become one of the most dynamic growth areas worldwide . Driven by the expanding global Muslim population and the increasing demand for ethically produced goods , this industry is no longer defined by geographic or religious boundaries .

Instead , the market is emerging as a robust model for sustainable , inclusive , and global consumerism .
GROWING MUSLIM POPULATION
With an annual growth rate of 1.8 per cent , the global Muslim population is projected to approach three billion by 2060 , representing nearly a third of the world ’ s population . This demographic shift is significant on its own , but it ’ s the rise of younger , values-driven Muslim consumers that is truly reshaping the market landscape .
By 2030 , over 50 per cent of Muslims worldwide are expected to be under the age of 30 ( Pew Research Centre , 2011 ), and this generation is not only more religiously observant but also places a high premium on transparency , ethical sourcing , and quality .
Brands worldwide are increasingly recognising the growing demand for halal products . Countries like Japan , South Korea , and Thailand have proactively entered the halal market , investing in certification processes to serve Muslim consumers .
Companies in these non-Muslim-majority countries understand that halal is more than just a label ; it represents a commitment to quality , safety , and ethical standards that resonate with this expanding consumer base .
THE UNIVERSAL APPEAL
The principles of halal are deeply holistic , encouraging consumption that is both halal ( lawful ) and toyyib ( good ). These principles extend beyond religious boundaries , encompassing health , ethics , and integrity . In the Quran , God says : “ O mankind , eat from whatever is on earth [ that is ] lawful and good and do not follow the footsteps of Satan . Indeed , he is to you a clear enemy .” ( Quran , Al-Baqarah , 2:168 ). In addressing “ mankind ” rather than any specific group , the verse highlights the universal relevance of these guidelines . Initially rooted in religious practices , halal certification is now attracting a broader audience , resonating with quality-conscious and ethically-minded consumers worldwide .
Halal has become synonymous with purity , cleanliness , and quality – aspects increasingly valued in industries like food , cosmetics , and pharmaceuticals . For many , halal certification signifies safety and ethical sourcing , meeting the demand for transparency in today ’ s markets .
For businesses , halal certification offers more than just market access ; it provides a way to differentiate on a global stage . Companies meeting halal standards demonstrate a commitment to quality , integrity , and inclusivity , making them appealing to both Muslim and non-Muslim consumers who prioritise ethical standards and premium quality .
NON-MUSLIM MAJORITY COUNTRIES
The growth of the halal market is reshaping consumer landscapes in non-Muslim-majority countries . As globalisation persisted and Muslim tourists travel widely , halal-certified
products are becoming increasingly common in places like Thailand .
Known as the “ kitchen of the world ”, Thailand has long embraced halal certification across its expansive food industry . In 2022 alone , Thailand ’ s halal exports surged , driven by its strong reputation for quality and rigorous certification standards .
Furthermore , in July 2024 , the Thai government launched a four-year halal industry action plan ( 2024 – 2027 ) aimed at promoting Thai products and enhancing industry standards . This ambitious initiative seeks to boost Thailand ’ s halal industrial sector , targeting a 1.2 per cent GDP increase , which translates to an annual growth of 55 billion baht and the creation of 100,000 new jobs each year ( The Government Public Relations Department Thailand , 2024 ).
Similarly , Japan is making substantial investments to meet halal standards for Muslim travellers , recognising that halal certification not only fulfils religious requirements but also enhances Japan ’ s reputation for inclusivity on the global stage .
As the number of Muslim visitors increases - driven in part by Japan ’ s popularity as a travel destination and events like the Tokyo 2020 Olympics - numerous Japanese businesses and local governments have adopted Muslim-friendly practices .
These include offering halal food options in restaurants , providing prayer spaces in public areas , and training hospitality staff on cultural sensitivities . In particular , major cities such as Tokyo , Osaka , and Kyoto have led this shift , with halal restaurants , prayer spaces , and hotels offering services tailored to Muslim travellers .
By embracing halal standards , these non- Muslim-majority countries demonstrate how inclusivity and respect for diverse consumer needs can open doors to new markets and support global growth .
“ By embracing halal standards , these non- Muslim-majority countries demonstrate how inclusivity and respect for diverse consumer needs can open doors to new markets and support global growth .”
INTERNATIONAL HALAL MARKET
However , as halal brands and certification bodies work to build trust , they must confront the specific perception that halal-certified products are niche and not universally sellable . This perception creates barriers to acceptance among potential consumers who might otherwise embrace the ethical and quality standards associated with halal .
In South Korea , despite government initiatives to increase and promote halal production , most certified products are still produced for export , while domestic versions of the same products often lack halal certification . This may partly stem from prevailing
social attitudes , which are not always welcoming toward Muslim people and Islamic culture .
A clear example of this export-focused approach is Samyang Foods , one of South Korea ’ s leading food manufacturers . Samyang exports halal products to 78 countries , including its wildly popular “ Buldak Ramen ” instant noodles , which have gained a substantial international Muslim consumer base .
In 2022 , sales of Samyang ’ s halal-certified products reached $ 200 million , accounting for about 45 per cent of the company ’ s total exports . Ironically , Muslims residing in South Korea often find themselves re-importing these “ made-in-Korea ” halal-certified noodles to satisfy their cravings .
Misunderstandings about halal — such as perceiving it as religiously exclusive rather than inclusive , ethical , and hygienic — may lead some South Korean consumers to view it as “ foreign ” or unnecessary .
This environment not only reduces local demand but also discourages companies from openly marketing halal products domestically , reinforcing the perception of halal as an “ export-only ” label ( Rashid , 2024 ).
In addition , the international halal market also faces a lack of unified standards and regulations where different countries and regions have varying halal standards and certification processes . For example , a product certified as halal in one country may not be recognised as halal in another . This adds to certification complexity as well as overall cost .
Other challenges include logistics and supply chain management , where the international halal market may have complex supply chains , issues in cold chain and storage , and high distribution costs . All these lead to market competition and price challenges .
Political and geopolitical factors also posed major challenges in the international halal market . For instance , there could be export and import restrictions , and countries may impose trade restrictions on halal products due to political tensions or trade regulations .
Geopolitical tensions , including political issues , particularly in regions with high Muslim populations , can also influence trade policies , making it difficult for companies to supply these markets consistently .
OVERCOMING CHALLENGES
To address these challenges effectively , a multifaceted approach is essential to cultivate a more inclusive halal market . Key strategies include : 1 . Education and transparency : Organise public seminars and create engaging content to educate consumers about halal principles and certification processes . Ensuring clarity in halal certification through third-party verification can build trust and credibility .
2 , Inclusive marketing and local partnerships : Develop marketing campaigns that reflect diverse consumer backgrounds , tailoring messages to resonate with local cultures . Collaborate with local producers to obtain halal certification and engage in joint marketing initiatives , broadening the availability of halal options .
3 , Social media engagement and community outreach : Leverage influencers and storytelling to share positive narratives about halal products , fostering emotional connections with consumers . Facilitate interfaith dialogues and support