@Halal April 2019 - Page 8

08 @Halal | april-may. 2019 Business Overview An on global halal market The world is witnessing a gradual shift towards halal goods and services in several sectors; including food, travel, finance and cosmetics, among others T he world’s Muslim population is approaching 1.6 billion, and are expected to account for 30% of the world’s population by 2025. For now, there are around 1.3 billion Muslims in the world and around 1.5 billion halal consumers, which means one out of every four human beings consumes halal products. The 0.2 billion difference between the consumers and the total population is accounted for by non-Muslims living in Muslim-majority countries where most foods are halal, such as Indonesia and Bangladesh. The world is witnessing a gradual shift towards halal goods and services in several sectors; including food, travel, finance and cosmetics, among others. An increased demand for Halal products The past year has seen an increased global demand for ethical, sustainable, environ- mentally and socially responsible goods and services which drives the growth of the halal market. And the demand isn’t just among Muslims but also showing growing accep- tance by non-Muslim consumers. Involvement of government and private bodies has contributed to the sustainability of the halal ecosystem through certification by religious authorities as well as implementa- tion of policies, which then help boost the The halal industry is growing steadily, and it is gaining traction among industry players worldwide. industry. Religious authorities of several countries are also working together towards establishing a global halal standard which would ensure an even more sustainable industry going forward. Growing market As Islam continues to be the second larg- est religion in the world, the halal product market is expected to grow from USD45.3 billion in 2016 to over USD58.3 billion by 2022. The largest sector of the global halal indus- try goes to Islamic finance, with a 43 percent share of the market, followed by halal food with a 36 percent market share. The global market revenue of halal food is projected to rise from about USD1.25 trillion in 2016 to about USD2.57 trillion in 2024, with the largest share of the market value coming from North America. Some of the biggest growth opportunities for the global halal market include branding halal food as healthy and producing organic halal food.  As the global market for halal foods grows, there will be an increasing demand from countries that do not have the means to produce sufficient quantities of their own halal food. The leading importers of halal food in 2015 among the Organisation of Islamic Cooperation (OIC) countries were Saudi Arabia, Malaysia, and United Arab Emirates, with one of the most popular  imported foods being beef. Brazil was the top exporter of halal meat in that same year, followed by Australia and India.  The majority of the global Muslim nations are among OIC member countries, and the global halal food market is on the threshold of major developments that hold the promise of rapid and sustained growth. More than just food With the halal food market currently accounting for as much as 12 percent of global trade in agri-food products, a major increase in demand will generate growth opportuni- ties throughout the agri-food industry. Many reports on the halal market focus on meat and meat products, but products sold under the halal label cover virtually every agri-food product as well as non-food products such as cosmetics. Malaysia is one of the most suitable example of halal certifications granted to not just food products. Cosmetics and pharma- ceutical products are among that looks for halal certification. By category, food and beverage holds the biggest share in the halal industry. In the Global Islamic Economic Report, the halal food and beverage consumption is valued at USD1.24 trillion. The halal pharmaceuticals and cosmetics sector is said to be growing with the innovation of halal nail polish and makeup. Halal cosmetics had a global market value of approximately 20 billion U.S. dollars in 2015 and are expected to reach 54 billion U.S. dollars in 2022. Muslims spend on pharmaceuticals is forecast to reach USD132 billion by 2022. Pharmaniaga, a Malaysian pharmaceutical company is set to invest RM100 million to develop halal and cost-effective vaccines for the public. Halal tourism rising Halal tourism grows on firmer footing in 2017. Key market players have conceded that more countries are catering to halal require- ments such as having prayer areas in tourist locations and airports, more halal options for food & beverages and itineraries catered to the Muslim tourists. Faeez Fadhlillah of TripFez stated that revenue for the company has superseded the original 300% projected growth, and the company has indexed 55,000 accommodation