Growing at an estimated annual rate of 20 percent, the halal industry is a booming business on a global scale. In fact, the halal food market now makes up about 19 percent of the global food market. From food to health care and everything in between, this up and coming lifestyle is not just limited to Muslims, since the industry has experienced a growing market of non-Muslim consumers as well. In this article, we explore the growth factors of today and tomorrow for the halal market.
The word halal means 'permissible' in Arabic. In order for a food to be considered halal it must:
The opposite of halal is haram, which means unlawful or forbidden. These two words are common knowledge, especially in the food and beverage industry.
Halal ‘foodies’, or 'Haloodies' as they are sometimes called, have been a driving force to this up and coming food trend. A mix of Muslims and non-Muslims, millennials are said to be the main force behind the growth of the industry. Though many Muslims will cite religious reasons for seeking halal food, non-Muslim consumers cite 'food quality' and 'health' as the main reasons for purchasing halal food.
The halal market covers more than just food and beverages. The halal industry has experienced a soaring demand for halal products worldwide such as cosmetics, toiletries, and pharmaceuticals, and now even services including travel, banking, finance, and logistics. Because of the increase in products many consumers are looking for halal-certified food and many manufacturers are looking to get certified. Getting halal certification is not an easy feat. Every country has its own Islamic council that is certified to give the official halal seal of approval.
Even non-Muslim countries are focusing their efforts on halal products. Japan airline, ANA has recently asked Malaysia to help with their selection of halal food for their in-flight food and beverage services.
The global halal industry is estimated to be worth around USD2.3 trillion. Growing at an estimated annual rate of 20 percent, the industry is worth about USD 560 billion a year. Moving forward, here are the trends we see happening for the years to come.
The global halal market has emerged as a progressive component in the global economy. With a Muslim and non-Muslim consumer base increasing every year, the halal industry is set to become a competitive force in the international business world.
Want to know more interesting insights on Asian dining? Check out our other Eye on Asia articles about the bubble tea craze from Taiwan and the solo dining trend in Korea.
This article was first published in Asia Research online.