Global Economic Impact of Halal Industry

Halal is a global market based on the needs and preferences of the estimated 1.8 billion Muslims worldwide. Halal has emerged as a powerful commercial arena. This creates opportunities for enterprises, especially in developing markets to take advantage of the estimated US$ 1 trillion market of the halal sector. The halal industry offers a great.

opportunity particularly the halal food market. With its emphasis on farm-to-fork compliance, there are many possibilities to link the SMEs to the international and regional supply chains existing in the halal sector. Many market are increasingly saturated and highly competitive, the evolving halal market offers a range of opportunities with a different set of ground rules, giving agile and enterprising particularly SMEs the chance to connect with the new marketplace.- Arancha Gonzalez, International Trade Centre, Executive Director

From a business perspective, the halal market undoubtedly offers a range of compelling opportunities. As many traditional markets reach saturation, the emergence of a new market, based on halal values and principles, is in effect creating a new commercial paradigm. This is strongly led by the food and beverage sector, and has more recently expanded into the pharmaceutical, cosmetic and personal-care sectors, driven by increasing consumer awareness and an entrepreneurial eye for new market opportunities.

In countries that export food products to the Muslim world, such as Australia, New Zealand, Brazil, the United States and European nations, halal certification has become a necessary, and indeed lucrative, component of international trade.

"Muslims are the fastest growing consumer segment in the world. Any company that is not considering how to serve them is missing a significant opportunity to affect both its top and bottom line growth.’

Muslimconsumer power is just starting to be a recognizable market force – consumers are, after all, the key component in the value chain. There is a growing awareness among halal customers that they represent a powerful market that crosses geographical, racial and cultural boundaries. Internet connectivity plays, and will continue to play, an increasingly influential role in generating and spreading consumer awareness.

The halal market, in essence, represents a new commercial paradigm that is based on a set of religious and spiritual obligations. At the same time, it has many crossover points and shared values with other recognized emerging-market trends that promote ethical and moral values in the marketplace.

The surge in interest in the halal food market over the past decade has opened a new window of opportunity. Food is a powerful force – it forms the basis of life for all people, and at the same time it is a global market trading in trillions of dollars annually. The halal food market, when viewed as a collective entity, is valued at US$ 1.29 trillion, greater than the markets of China, the United States, Japan and India.

Halal goes global, International Trade Publication, 2015.