The umbrella term Halal refers to anything permissible or lawful under Islamic law – a concept that is deeply rooted in the Islamic faith and has become increasingly important in today’s globalised world. According to the Quran, the term Halal is particularly associated with Islamic dietary laws and especially meat processed and prepared in accordance with those requirements. The Halal industry, therefore, refers to the production and distribution of goods and services that are compliant with Islamic law.
Over time, the concept of Halal has evolved to include not only food and drink items but also other aspects of daily life, such as clothing, cosmetics, and pharmaceuticals. Today, the Halal industry is a rapidly growing sector of the global economy that is estimated to be worth over $2 trillion (*Source: ISFIN), with Muslim consumers accounting for a significant portion of this market . However, the Halal industry is not limited to Muslim consumers alone as many non-Muslims also choose to consume Halal products because of their perceived health benefits or ethical evaluations.
With an increasing number of people seeking Halal products and services, it’s no surprise that the industry is booming. And if you’re looking to expand your business in this market, then you wouldn’t want to miss this food expo in Malaysia (https://karnivaldaganghalal.com/en-my/) – Karnival DagangHalal, being the largest Halal trade show that is open to all. As an excellent platform for businesses to showcase their Halal products and services, you can network with industry professionals, and gain valuable insights into the latest trends and developments in the sector. Tap into new markets and grow your business in the Halal industry, with Karnival DagangHalal.
The Growth of the Halal Industry
The Halal industry has experienced significant growth in recent years, with the global Halal market estimated to be worth over $2 trillion. The Muslim population, which is the primary consumer of Halal products, is also growing rapidly, contributing to the growth of the industry, according to a report by Thomson Reuters, where the global Halal food market was said to reach $1.93 trillion by 2022.
The rise of Islamic finance has also contributed to the growth of the Halal industry. Many Muslims prefer to invest in Halal-compliant financial products, which has led to an increase in demand for such products. The globalisation of the Halal industry has also played a significant role in its growth. Halal products are now available in many parts of the world, making them accessible to a broader audience (*Source: E-Halal Organization 2010).
The global Halal industry is estimated to be worth around USD 2.3 trillion, excluding Islamic finance. Growing at an estimated annual rate of 20%, the industry is valued at about USD 560 billion (*Source: Malaysian Halal Portal) a year. Thus, making it one of the fastest-growing consumer segments in the world. The global Halal market of 1.8 billion (*Source: Halal Industry Development Corporation) Muslims is no longer confined to food and food-related products.
The global Halal market is rapidly entrenching further in the world economy driven by several demand and supply factors. From the demand side, a fast-expanding Muslim population combined with growing wealth in Muslim-dominated economies are the main growth drivers spearheading the increased demand for Sharia-compliant products and services. As per the latest statistics from Pew Research, Muslims are forecasted to comprise 26.4% of the world’s total projected population of 8.3 billion (*Source: Islamic Services of America) by 2030.
The average rate of growth of the global Halal market on a year-to-year basis is estimated to be around 6-7% (*Source: Malaysian Halal Portal). This growth is expected to continue in the coming years as more companies enter the Halal market and consumers become more aware of Halal products.
Halal Industry Trends
The global Halal market is constantly evolving, and several emerging trends are shaping its future. One of the most significant trends is the growth of Halal tourism. Muslim travellers are increasingly seeking out destinations that offer Halal food, prayer facilities, and other services that cater to their religious needs. This has led to the development of new Halal-friendly travel packages and the expansion of Halal tourism in many parts of the world.
Another emerging trend in the Halal industry is the rise of Halal cosmetics. Many Muslim consumers are looking for cosmetics and personal care products that are free from alcohol, animal-derived ingredients, and other non-Halal ingredients. This has led to the development of new Halal-certified cosmetic brands and the expansion of existing brands to include Halal products.
Technology is also playing an important role in the global Halal market. The use of blockchain technology is becoming increasingly popular for Halal certification, as it provides a transparent and secure way to track the Halal status of products throughout the supply chain. Other technologies such as artificial intelligence and big data analytics are also being used to improve the efficiency and effectiveness of Halal certification processes.
The emergence of these trends is significant because they reflect the changing needs and preferences of Muslim consumers. As the Muslim population continues to grow and become more affluent, the demand for Halal products and services is likely to increase. This presents a significant opportunity for businesses that can meet these needs and tap into the growing Halal market. Additionally, the emergence of new technologies and innovations in the industry will help to improve the quality and accessibility of Halal products and services, further driving the growth of the global Halal market.
Challenges and Opportunities
The Halal industry has experienced significant growth in recent years, with rising demand for Halal-certified products and services across the world. However, this growth has also brought about several challenges that the industry must overcome to continue its upward trajectory.
One of the biggest challenges faced by the global Halal market is the lack of standardisation. Different countries and organisations have their definitions of what constitutes Halal, leading to confusion and inconsistency in certification and labelling. This can make it difficult for consumers to trust that the products they are purchasing are truly Halal.
Another challenge is certification issues. The process of obtaining Halal certification can be complex and costly, particularly for small businesses. This can create a barrier to entry for companies looking to enter the Halal market, limiting the range of products and services available to consumers.
Despite these challenges, the Halal industry presents a wealth of opportunities for businesses and entrepreneurs. The global Halal market is estimated to be worth over $2 trillion, with demand for Halal products and services growing in both Muslim-majority and non-Muslim-majority countries.
One opportunity lies in tapping into the unmet demand for Halal products in non-Muslim-majority countries. As more consumers become aware of the benefits of Halal products, there is potential for businesses to expand their offerings beyond traditional Muslim markets.
Innovation is also key to the growth of the global Halal market. The development of new technologies and processes can help to streamline certification procedures and improve supply chain transparency, making it easier for businesses to enter and compete in the Halal market.
Halal Certification and Standards
The all around recognised Halal certification is of utmost importance in the global Halal market as it ensures that the products and services exhibited are permissible according to Islamic dietary laws. This certification is essential for businesses looking to cater to Muslim consumers, who make up a significant portion of the global population.
The acquisition of the Halal certification process also typically includes an audit of the manufacturing facilities to ensure that they comply with Islamic dietary laws. This includes the use of dedicated equipment and facilities for Halal production and ensuring that non-Halal products are not produced in the same facility.
Halal Industry in Different Regions
The global Halal market is a rapidly growing sector that caters to the needs of the Muslim population worldwide. The industry has seen significant growth in recent years, with an estimated global market value of $2.3 trillion by 2020. The demand for Halal products has been driven by the increasing Muslim population and a growing awareness of the importance of Halal certification among non-Muslim consumers.
Asia is home to the largest Muslim population globally, making it a significant market for the Halal industry. The region has seen considerable growth in the global Halal market, with countries such as Malaysia, Indonesia, and Pakistan leading the way. The Halal industry in Asia covers a wide range of products, including food, cosmetics, and pharmaceuticals. In addition, the region has seen a rise in Islamic finance and Halal tourism.
The Middle East is another significant market for the Halal industry, with countries such as Saudi Arabia, United Arab Emirates (UAE), and Qatar leading the way. The region is known for its strict adherence to Islamic principles, making it an ideal market for Halal products. The Halal industry in the Middle East covers a wide range of products, including food, cosmetics, and fashion.
Europe has seen a significant increase in demand for Halal products in recent years due to the growing Muslim population and increasing awareness of Halal certification among non-Muslim consumers. The Halal industry in Europe covers a wide range of products, including food, cosmetics, and pharmaceuticals. Countries such as France, Germany, and the UK have seen significant growth in the global Halal market.
North America has a relatively small Muslim population compared to other regions, but the demand for Halal products has been increasing in recent years. The Halal industry in North America covers a wide range of products, including food, cosmetics, and pharmaceuticals. The US and Canada have seen significant growth in the Halal industry, with companies such as Tyson Foods and Maple Leaf Foods launching Halal-certified products.
Talking about the regional differences within the global Halal market, these differences vary vastly based on types of products and consumer preferences. For example, the Halal food industry in Asia is dominated by meat products, whereas in Europe, there is a significant demand for Halal-certified dairy products. In the Middle East, there is a growing demand for Halal cosmetics, while in North America, the focus is on Halal-certified pharmaceuticals.
Consumer preferences also vary by region. In Asia, consumers are more likely to choose Halal products based on religious beliefs, whereas, in Europe and North America, consumers are more likely to choose Halal products based on health and safety concerns. In the Middle East, consumers are more likely to choose Halal products based on quality and authenticity.
The global Halal market is a rapidly growing sector that has gained significant attention in recent years, with an increasing number of consumers seeking Halal products and services. This trend is not limited to Muslim-majority countries but is also prevalent in non-Muslim countries where Halal products are becoming increasingly popular due to their perceived health benefits and ethical considerations. As consumer demand for halal products continues to grow, it is likely that we will see even more innovation and investment in this sector in the years to come.
As the largest Halal food expo in Malaysia, Karnival DagangHalal plays a crucial role in promoting the global Halal market and connecting businesses with consumers. With free public visitation, the event provides a platform for businesses to showcase their Halal products and services, network with industry professionals, and gain insights into the latest trends and developments in the Halal industry.
As a recurring event of up to 3 times annually, Karnival DagangHalal has successfully established itself as a leading food expo for the Halal industry, attracting a diverse range of exhibitors and visitors from around the world. With an estimate of 50k visitors by quantitative surveyors, Karnival DagangHalal ensures that all the products and services exhibited at the event meet these rigorous Halal certification standards and promotes standardised Halal certification and labelling. The expo also provides standardised certifications for all the exhibits, which helps to address the confusion and inconsistency in certification and labelling. This makes it easier for consumers to trust that the products they are purchasing are truly Halal.
In addition to this, the expo also provides a live Halal audit, which ensures that all the products and services exhibited at the event are Halal certified. This helps to address the lack of standardisation in the industry and provides consumers with the assurance that they are purchasing truly Halal products.
With a $1.5 million budget spent on 13 different channels, Karnival DagangHalal has rigorous quality checks in place to ensure that all the exhibits meet the highest standards of quality. This helps to address certification issues and creates a level playing field for businesses looking to enter the Halal market.
Looking ahead, the future of the global Halal market looks promising, with increasing demand for Halal products and services worldwide. As such, Karnival DagangHalal is well-positioned to continue playing a pivotal role in promoting the Halal industry and driving its growth in Malaysia and beyond.
Join the largest Halal food expo in Malaysia and get a goodie bag and a potential lucky draw win with each early registration!
Date: 29th September to 1st October 2023
Website: https://karnivaldaganghalal.com/en-my/
Email: info@karnivaldaganghalal.com
Phone: +6011-2066 1150
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