0
0
Welcome to the dynamic world of the Halal industry in 2024, where the intersection of commerce, culture, and ethical consumerism has given rise to a thriving market.
Companies that invest in comprehending and meeting the specific needs of the Halal consumer demographic stand to benefit from a diverse and expanding market.
To gain better insight on the Halal industry in 2024, read on to explore the latest trends, innovations, and market dynamics that shape this rapidly-evolving industry.
What is the Halal Industry?
The term “Halal” originates from the Arabic language, signifying “allowed” or “permissible” per Islamic law. Hence, it is incumbent upon every Muslim to verify that everything they consume originates from a Halal source.
This scrutiny extends beyond the ingredients to cover the production and handling process, ensuring compliance with Halal principles from beginning to completion.
The Halal industry, encompassing diverse products and services, has experienced notable evolution and innovation. From Halal food and beverages to finance, cosmetics, and beyond, businesses are increasingly recognising the significance of catering to the needs of a global Muslim consumer base.
Presently, with a global Muslim population exceeding 1.9 billion, there are around 50 countries where Muslims constitute the majority. These are defined as nations where over 50% of the population embrace Islam.
On top of that, since Muslims make up about 24.1% of the world population, it is evident that substantial business opportunities exist to serve this significant market segment.
A Glimpse of the Halal Industry: Trends and Prospects
- Overview
The Transparency Market Research expects the global Halal products market, valued at $2.70 trillion in 2015, will rise to $10.51 trillion by 2024, showcasing 16.2% of the Compound Annual Growth Rate (CAGR) within 8 years.
Currently, Asia–Pacific (APAC) still dominates the market due to its large population of Muslims. Moreover, the large number of certified manufacturers within APAC also contribute to the positive impact on the global scale.
Besides that, the Halaltimes.com news portal reports an increased outlook in the APAC market, particularly in the wake of the Regional Comprehensive Economic Partnership (RCEP) agreement. The RCEP stands as the largest free trade coalition among countries.
Primarily, Malaysia, the leading Muslim nation in the Halal industry, boasts the most advanced and sophisticated Halal ecosystem. It is poised to reap the greatest advantages from the halal initiatives anticipated in the coming decade. Meanwhile, Indonesia, the most populous Muslim country, is strategically positioning itself to boost its Halal industry in the upcoming years.
-
Participation of non-Muslim majority countries
Nevertheless, regarding market potential, the Halal industry is not limited to Muslim-majority countries. It has transcended geographical boundaries and attracted attention on a global scale.
Additionally, non-majority Muslim countries like Japan and South Korea actively develop their distinct Halal industries, showcasing a commitment to participating in and contributing to the global Halal market.
For example, South Korea aims to be the next halal powerhouse, as evidenced by the South Korean government’s encouragement of businesses to capitalise on the halal trend. Moreover, the government offers extensive support, including analysing food ingredients, subsidising certification fees, and organising events to connect buyers and suppliers.
Further, in South Korea’s fourth-largest city, Daegu, local authorities are driving the ‘Halal Food Activation Project with the ambitious goal of boosting the number of Halal-certified companies in the town by tenfold. They aim to triple exports to $200 million by the year 2028.
-
The food sector is leading the market
The largest sector of the Halal industry is the Halal food sector. According to Renub Research, the global Halal food market will be worth around $4.5 billion by 2030.
In addition, IMARC reports that the major demand in the global Halal market is centred around Halal meat, poultry, and seafood products, constituting nearly 50% of total market sales.
The report also highlights the remarkable growth of the Halal confectionery, bakery, and related products segment, projecting a predicted growth rate of 9% CAGR. This underscores the increasing popularity and consumer interest in diverse Halal food options, especially within the confectionery and bakery sectors.
Moreover, due to the increased published research on various benefits of Halal food intake, these food products have gained recognition among non-Muslims in the past few years.
-
Utilising advanced technology in supply chains
The shift in consumer preferences in choosing ethically produced options has prompted businesses to invest in transparent supply chains. This strategic investment empowers businesses to monitor and manage their production processes closely.
By ensuring traceability, companies can uphold the highest standards of quality throughout the entire lifecycle of their products.
Blockchain technology is also gaining recognition as a prospective solution for enhancing traceability and sustainability in the Halal food industry. In pursuit of these goals, key players in the Halal industry are turning to blockchain technology, which enables them to trace the origin of products, document processing procedures, and monitor the use of each ingredient.
Therefore, industry players should use technology to boost transparency and efficiency by implementing a digital ecosystem. This not only meets the rising ethical expectations of consumers, but also positions these businesses as responsible and environmentally-conscious entities in the market.
Read more: What is Ethical Consumerism and How it Influences Your Brand
-
Halal Expos catalyses the Halal market globally
Halal expos are pivotal in promoting the Halal industry by providing a platform for exposure, networking, education, and innovation. It eventually contributes to the growth and development of businesses within the industry.
Additionally, participating in international Halal expos often involves adhering to and showcasing compliance with established Halal standards. This transparency builds trust among consumers, who can be confident in the authenticity of the displayed products.
Not only that, it is also an excellent platform for key players to exchange insights into the latest trends, regulations, and inventions in the Halal industry. This educational component benefits both businesses and consumers.
Further, in regions where Halal tourism is a significant sector, Halal expos can attract visitors interested in exploring Halal-friendly destinations, thereby contributing to the growth of the local economy.
The Promising Future of the Halal Industry
The Halal industry is poised for a promising future, characterised by robust growth and widespread recognition. In this era, the Halal industry not only meets the stringent standards of Islamic ethics, but also embraces modern technologies, sustainability, and ethical practices.
As consumers become more discerning, the demand for Halal-certified products and services has evolved beyond religious considerations. Now, it extends to a broader audience appreciative of quality, transparency, and ethical sourcing.
As we look ahead, the promising future of the Halal industry rests on its ability to innovate, diversify, and cater to the evolving preferences of the consumer base.
