The halal industry covers:
- food;
- non-food products, including pharmaceuticals, health products, medical devices, cosmetics and toiletries; and
- services, including logistics, packaging, branding and marketing, printed and electronic media, and travel and tourism.
(a) Size of the Halal Market
21.04 Information and statistics on the status of the halal industry are not readily available. Until recently, halal products and services have not been viewed as a market in its own right. For example, halal meat was considered simply a part of the meat industry, and not as part of the entire halal supply chain, from cattle farming to meat processing, packaging and logistics. This has placed a limitation on determining the extent of the global and regional markets for halal products and services.
Global Halal Market
21.05 Estimates have been made on the size of the global market for halal products and services.
On foods, it is estimated that the global market value for halal foods is about US$547 billion a year (Table 21.1).
If non-food products, such as health products, cosmetics and toiletries, as well as hotel and catering services, are also taken into consideration, the global market value for both food and non-food halal products is estimated at US$2.1 trillion annually.
The present trend in consumer demand for halal products and services is expected to continue, in tandem with the increasing size of the Muslim population in the world. With regard to investments in the halal industry, it is estimated that the value of the wealth of the Muslim countries, which has been invested and is continuously seeking investments, is approximately between US$800 billion and US$1 trillion.
Regional Halal Market
(i) Asia
21.06 Asia, in particular, Indonesia, Pakistan, India, the People’s Republic of China, Singapore, Brunei, Thailand and West Asia, with a collective Muslim population of approximately 1 billion, is a prime target market for halal goods and services. Within this region, there is also a fast developing halal food production industry being positioned to supply this lucrative market. South East Asia is becoming an important and competitive regional market for halal products, in view of its vast consumer market, fast developing halal food production and progress on halal certification.
21.07 West Asia, with consumers having high disposable incomes, makes it a potential market for not only halal products but also services, particularly travel and tourism. Tourism packages have been developed which cater to the needs of the West Asian tourists. With limited domestic agriculture, the expanding local food production industry throughout the sub-region is largely built on imported raw materials. While the halal market in the sub-region has been primarily based on meat products, there is considerable room for expansion in the areas of non-meat, ready-cooked meal solutions, dairy products, baked goods, and cosmetics and toiletries.
Limitations in the development of the halal industry in the sub-region include:
- lack of focus on developing domestic production in foods, since the economic development of many of the countries has been oil-driven; and
- limited or absence of infrastructure for domestic halal certification. Most halal products are imported. While certification is mandatory, in general, any recognised halal certificate is acceptable.
(ii) Europe
21.08 Europe, including Eastern Europe, has a Muslim population of about 51.2 million and has a spending power of about 30 billion Euros annually. Major retail chains view halal products as part of their business expansion plans, and source a range of halal-certified products to fill new halal sections of their outlets. Major retail chains in the United Kingdom (UK) have an increasingly influential role in the halal industry. In some of these stores, 40 per cent of
their customers are Muslim, who require more halal products, both food and non-food, with a wider product offering.
A report on the UK halal market, published recently by the UK Government, revealed that:
- the Asian population in the UK is growing at 15 times the national average;
- by 2011, about 50 per cent of all London boroughs will have an ethnic majority population;
- retail sales of halal meat are valued at £400 million;
- the majority of Muslim consumers utilise large supermarket chains for their main grocery shopping, indicating a vast retail opportunity for the large chains; and
- 51 per cent of the Local Education Authorities presently require halal meat.
(iii) The United States of America
21.09 With a population of 6 million Muslims, the halal food industry in the United States of America (USA) is substantial and is estimated to be growing at a faster pace than the market for kosher products. The Islamic Food and Nutrition Council of America (IFANCA) assumes a key role in this market.
