Rising Demand for Halal Products in Global Market
The concept of halal, which means permissible according to Islamic sharia law, originally applied to only foods but now extends to include non-food items as well. With a growing global Muslim population and rising standards of living, the demand for halal products is experiencing unprecedented growth. This article explores the rising demand for halal products across various categories and its implications.
Food dominates the halal industry
Unsurprisingly, food makes up the bulk of the global halal products market with meat being the largest segment. According to industry estimates, the halal food market was valued at $1.9 trillion in 2019 and is projected to reach $3 trillion by 2025. The key reasons for the surge in halal food demand are the growing Muslim population worldwide as well as non-Muslim consumers looking for healthy and sustainable food options.
Meat has traditionally been the biggest category in halal food due to cultural and religious reasons. Muslims around the world are increasingly opting for certified halal meat to ensure proper slaughtering guidelines are followed. Countries with large Muslim populations like Indonesia, Pakistan and Malaysia dominates the global halal meat trade. However, developed western nations are also emerging as important markets driven by their large Muslim immigrant communities.
Other popular halal food categories experiencing high growth include ingredients, frozen and processed food, beverages, dairy products etc. Key global food brands are actively expanding their halal offerings to tap into the opportunities. Countries like Singapore, UAE and South Africa are also positioning themselves as halal food hubs to serve both domestic and international demand.
Emergence of halal cosmetics and personal care industry
Once limited to food, halal certification is now extending to non-edible items as well. The global halal cosmetics and personal care industry has grown over 15% annually in recent years to reach $20 billion currently. Products containing animal-derived ingredients like collagen, lanolin, gelatin etc. require halal verification to be acceptable for Muslim consumers.
Leading cosmetics brands are responding by offering larger halal-certified ranges. A significant number of personal hygiene products are also being certified halal as they use ingredients derived from animals. Similarly, certain fragrance and essential oils require halal verification. Major producers in the Middle East and Southeast Asia primarily drive the current global halal cosmetics ecosystem.
However, the growing multicultural demographic in the West is elevating halal beauty standards globally. Retailers are recognising this shift and dedicating more shelf space to verified halal skincare and cosmetic lines. Younger Muslim consumers are particularly brand-loyal to halal labels and serve as an influential target segment. Social media marketing also elevates awareness and demand for halal cosmetic innovations.
Momentum picks up in other sectors as well
In addition to food and personal care, halal certification is gaining ground in several other industries. The global halal pharmaceutical industry alone is pegged at $44 billion currently. Like cosmetics, capsules, solvents, gelatin suppliers and other animal-based ingredients dominating the pharma supply chain increasingly need halal assurance.
The clothing and textile industry has also incorporated halal standards, especially products involving animal fibres or solvents. The Islamic fashion and modest dressing segment within apparel is a $277 billion global opportunity. Luxury goods manufacturers are also tapping into rising disposable incomes of Muslim travellers by offering halal verified product extensions.
Even sectors like tourism, logistics and supply chain segments are adopting halal guidelines to remain relevant to Muslim consumer demands worldwide. New opportunities are emerging in media, recreation and lifestyle categories to cater to the growing profile of Muslims seeking halal-friendly alternatives.
New horizons for sustainable halal production
With deeper market penetration across product categories, driving halal standards is becoming increasingly complex. Meanwhile, consumer priorities are shifting towards more transparent and sustainable sourcing practices. New frontiers are opening up for halal certification bodies to focus their assessments beyond basic religious parameters.
Organisations are aligning halal frameworks with environment protection and animal welfare norms. Sustainable sourcing and halal production are converging, opening new avenues for specialised halal eco-labels and certifications. Technology infusion is allowing track-and-trace solutions for certified halal supply chains while blockchain can boost transparency.
Consumer education on halal logistics, trade and food security issues also assume more importance. This evolving landscape presents both challenges and opportunities for producers and certification agencies to reinforce halal integrity alongside compassionate production methods. The future of halal certification seems intertwined with progress on sustainability goals to benefit people and planet together.
Conclusion
In summary, the halal market has transformed from a niche regional industry into a major global economic force. A resurgent interest in halal lifestyle and consumption patterns is prompting brands to innovate dedicated offerings for Muslim demographics worldwide. With the Muslim population projected to grow at a higher rate than other religious groups, halal demand looks set to scale further heights across food, personal care, pharmaceutical and various everyday product segments in the coming decade. Meanwhile, halal standards are advancing to integrate modern priorities around supply chain transparency, ethics and environmental governance as well. The intersection of halal certification and sustainability norms chart exciting possibilities for businesses and society ahead.
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