Is there a market for a global halal brand? We get this question from halal brands of all sizes. Most of these brands are small. But, they would like to expand globally. They want to grow much bigger than they are right now.
But, as you might think there are already quite a few major brands offering halal products on a global scale. Why do we need more Halal brands?
The global Halal industry is expanding rapidly to serve the ever-increasing Muslim population all over the world. Muslim consumers are becoming affluent. The middle class is expanding. They want to have more choices in the products they consume on daily basis.
One of the main pillars of the Islamic economy, the halal food market, is in rapid expansion mode. Key factors contributing to this market growth are the increase in the Muslim population, more research, and development in halal product innovations, as well as investments across the halal food entire value chain, and better access to Islamic finance options for halal food production.
The halal food sector has also spread widely to non-Muslim countries such as Japan, South Korea, Australia, New Zealand, and Brazil.
What is the current size of the halal food industry worldwide?
Thomson Reuters and DinarStandard, a US-based research firm focusing on the Islamic economy, have estimated the global Muslim expenditure on halal food to be $2.3tn in 2020, and the expenditures are increasing at a rate of over 10% annually. That is probably a conservative estimate as many non-Muslims also enjoy the wholesomeness of halal food products. It is expected that Muslim expenditures on food will be 21% of the global spending on food by 2025.
Where do we see the biggest growth potential?
Growth will be balanced among geographical locations, but on a percentage basis, we will likely see higher growth rates in regions where economic conditions show the biggest improvements. That is likely to be in today’s less affluent areas in Africa and South Asia. As far as the market segments are concerned, again we expect balanced growth with opportunities for higher growth in ingredients, nutritional supplements, and food services; the latter due to increased attention to halal in the travel industry.
How can conventional food industries tap this potential at best?
Tapping into the halal industry is not much different from entering into any new market. Newcomers need to study the marketplace, understand the requirements, develop a market strategy, partner with a reputable halal certifying body and execute the strategy. The challenge for global marketing would be to understand the different standards in different regions and finding the right halal certifying body that can help guide them through the different standards.
Is there a market for an international halal food brand?
Absolutely. With today’s mobility, consumers want to find products they trust wherever they happen to be. A global brand makes that easy. Whether it is a global halal restaurant chain, hotel chain, or even frozen food, a global halal brand will afford halal consumers peace of mind. And halal consumers are generally loyal to brands that comply with their needs.
How can halal food certification be streamlined internationally?
This issue takes into account two important things: a global unified standard or a set of global standards and a centralized accrediting organization. While the halal economy has been struggling with this for several years, there has been progressing and we hope to see something emerge in the years ahead. The industry, consumers, and regulators want to see this happen. It is just a matter of coming together to work out the details.