Why Halal Certification is Key for Japanese Companies Targeting Muslim Markets

As global demand for halal products continues to rise, obtaining halal certification has become increasingly crucial for Japanese companies looking to enter Muslim markets. This trend is not just about adhering to religious practices but also about tapping into a lucrative and expanding market. With the growing number of tourists from Muslim nations visiting Japan, Japanese businesses have a significant opportunity to cater to these consumers, making halal certification a key factor in their success.

The Importance of Halal Certification for Japanese Companies

Halal certification is essential for companies that want to ensure their products are permissible under Islamic law, particularly when targeting Muslim-majority countries. The certification process involves rigorous checks on ingredients, production methods, and supply chains to ensure compliance with halal standards. For Japanese companies, obtaining this certification is a gateway to accessing markets in Southeast Asia, the Middle East, and other regions with significant Muslim populations.

The Need for a Unified Halal Standard in Japan

During the Japan Halal Summit 2014, Mohammad Zubair, the General Secretary of Halal Development Foundation Japan Inc. (HDFJ), emphasized the importance of creating a “one halal standard” in Japan. A unified halal standard would simplify the certification process for Japanese companies, ensuring that their products meet the requirements of all Muslim countries. This standardization is critical as it would eliminate the confusion and inconsistencies that currently exist due to varying halal certification standards across different countries.

“A single halal standard in Japan would not only streamline the certification process but also boost the credibility of Japanese products in the global halal market,” Zubair stated at the summit.

Growing Muslim Tourism in Japan

The relaxation of Japanese visa requirements has led to a significant increase in the number of tourists from Muslim-majority countries, particularly from Southeast Asia. According to the Japan National Tourism Organization (JNTO), more than 300,000 tourists from Malaysia and Indonesia visited Japan last year, more than double the 140,000 who visited in 2011. This surge in Muslim tourists presents a substantial business opportunity for Japanese firms, particularly those in the food, hospitality, and retail sectors.

However, despite this growth, Japan still lags behind other Asian nations in fully accommodating Muslim tourists. Countries like Malaysia, Indonesia, and even neighboring South Korea have made more substantial strides in providing halal-certified food, prayer facilities, and other services that cater to Muslim travelers. For Japan to remain competitive in attracting Muslim tourists, it is essential to expand and improve halal certification and related services.

Addressing the Knowledge Gap in Japanese Businesses

One of the key challenges highlighted at the Japan Halal Summit is the lack of awareness among Japanese companies about halal requirements. Syed Asad Sajjad Zaidi, CEO of the Gulf Halal Center in Dubai, stressed the importance of educating Japanese businesses about the benefits of halal certification. “Our target is to make Japanese businesses more aware of the benefits they can gain from halal certification—how it can enhance their trade opportunities by opening up access to a significant global market,” Zaidi explained.

For many Japanese companies, the concept of halal goes beyond just food. It includes pharmaceuticals, cosmetics, fashion, and even tourism services. Educating businesses about the broader implications of halal and how it aligns with Japanese quality and safety standards could help bridge this knowledge gap.

The Role of the Japan Halal Summit

The Japan Halal Summit serves as a crucial platform for fostering collaboration between Japanese companies and Muslim-majority countries. Attended by organizations from about 20 Muslim countries—including Saudi Arabia, Kuwait, Indonesia, Malaysia, and Pakistan—the summit provides Japanese businesses with the opportunity to gain insights into the halal market and build relationships with potential partners.

The summit also aims to present Japan’s advanced technologies, products, and hospitality from a Muslim perspective. By doing so, it seeks to enhance Japan’s reputation as a halal-friendly destination and a reliable partner in the global halal market.

Latest Developments in Halal Certification in Japan

Since the 2014 summit, there have been significant developments in Japan’s approach to halal certification. The Japanese government, in collaboration with various halal certification bodies, has made strides in standardizing halal practices across the country. This includes the establishment of more halal-certified restaurants, the introduction of halal-friendly travel packages, and the expansion of halal-certified products in supermarkets and convenience stores.

In addition, the Tokyo Olympics in 2021 further accelerated the need for halal-friendly services, as Japan welcomed a diverse group of athletes and visitors, including many from Muslim-majority countries. This event highlighted the importance of having a robust and reliable halal certification system in place to cater to international visitors.

Challenges and Opportunities Ahead

Despite these advancements, challenges remain. The fragmented nature of halal certification in Japan means that businesses often have to navigate a complex and sometimes confusing landscape. To address this, ongoing efforts are needed to consolidate and harmonize halal certification standards within Japan, ensuring that they are recognized and accepted globally.

Moreover, as the global halal market continues to grow, Japanese companies have the opportunity to expand their reach by embracing halal certification. This not only opens up new markets but also aligns with Japan’s reputation for quality and innovation. By investing in halal certification, Japanese businesses can position themselves as leaders in a market that is expected to reach $2.4 trillion by 2024.

The growing demand for halal products and services presents a significant opportunity for Japanese companies. However, to fully capitalize on this potential, it is crucial to establish a unified halal standard in Japan and to educate businesses about the benefits of halal certification. The Japan Halal Summit has laid the groundwork for this process, but continued efforts are needed to ensure that Japan can compete effectively in the global halal market.

As Japan seeks to attract more Muslim tourists and expand its presence in Muslim-majority markets, the importance of halal certification cannot be overstated. By embracing this trend, Japanese businesses can not only enhance their trade opportunities but also contribute to a more inclusive and diverse global economy.