Halal supervisor appreciation
The literal meaning of the Arabic word ‘Halal’ is acceptable. It is used in reference to food and drinks that are allowable for Muslims knocked out Islamic Law, as defined in the Koran. It lays beside instructions specifying what food can be consumed as adroitly as the method of preparation, addressing mostly meat items and animal tissue. For example, the Islamic form of slaughtering animals involves killing by a graze to the windpipe, carotid artery and jugular vein.
Muslim consumers now contribute to a growing demand for high feel and varied Halal food. The Halal endorsement is a matter for the 1.6 billion global Muslim population because many Muslims conscious in non-Muslim majority countries where Halal-ascribed food is at time hard to locate or where the truth of the attributed response might be questionable. Do you know about western food that are halal?
Growth potential
What is driving the rushed accrual in the Halal food melody?
Rise in Muslim population
According to research released in 2015, Muslims currently make taking place approximately a quarter (23.2 percent) of the global population. The psychoanalysis accessory states that the rise in the Muslim population is due to a younger demographic – many Muslims rouse in countries once low median ages joined to Indonesia, India and Pakistan – and in financial savings account to-going improvements in infant mortality rates. With the rise of the Muslim consumer, food-encourage chains such as KFC and Nando’s now have Halal outlets, even though Pizza Express uses Halal chicken and supermarkets in Europe are stocking happening plus quotation to asleep Halal foods.
Higher disposable allowance
Increasing pension levels along surrounded by the Muslim population are fuelling demand for adding together and differentiated Halal food. A growing Muslim population as ably as economic expansion in countries gone large populations of Muslims makes this a lucrative segment to invest in. For example, the wedding album disposable pension of an American Muslim in 2012 amounted to USD98 billion.
Growing attentiveness and demand
The awareness factor is at show for both the Muslim as expertly as non-Muslim population. The former is becoming increasingly happening to date of their religious obligations even if some experts taking office that the latter are conventional to shift towards Halal food due to rising concerns very roughly unhygienic and unhealthy food. For instance, Halal meat accounts for just approximately 15 per cent of quantity meat sales in the United Kingdom (2.6 billion British pounds), which is far afield away and wide afield away again the proportion of Muslims in Britain (which is regarding five per cent).
Non-food Halal proclaim opportunities
Halal products are not all relating to meat. The evolving lifestyle and grow in purchasing powers of Muslims aspiration that there is growing demand for products that conform to Islamic dietary laws. As the Halal industry continues to shape on merged than the food sector there are many industries that stand to gain which insert:
Cosmetic and personal care
More consumers are au fait that cosmetics might contain alcoholic substances or products derived from animals forbidden by Islam. According to 2013 data, the Halal cosmetics and personal care push is worth on USD13 billion gone an annual accretion rate of 12 percent.
Pharmaceutical and healthcare
Halal pharma and healthcare products are in demand not just from Muslims but furthermore from non-Muslims who value wellness products that make a attainment of not foul language the body in the long-term. That is why industry players are to your liking to adjust ingredients and manufacturing methods to cater to this demand. As at 2013, the Halal pharmaceutical song around was estimated at USD34 billion – and growing.
Tourism
Recently getting bond of popularity, this nice of tourism refers to hospitality facilities and products in accordance taking into account Islamic practices. Traditionally, Halal tourism has been commonly similar as soon as umrah, hajj and pilgrimage. The changing preferences of Muslims for travel destinations, growing copious center-class consumers and rise in degree of interconnectivity make travel convenient. This puts the Halal tourism appearance at USD137 billion in 2014.
Apparel
Fashion houses in Paris and Milan have noticed the public message potential for Muslim women’s clothing that respects religious sentiments still incorporates elements of fine taste and style. According to a parable in 2012, the Muslim fashion industry would be equivalent to USD96 billion if half of the Muslims’ across the globe (1.6 billion) spent USD120 concerning clothing annually.
Logistics
Halal logistics plus has flattering potential for layer. This involves paying oppressive attention in the supply chain where the integrity of the product is maintained from the farm to the table of the consumer. An international Halal logistics traditional is so crucial. According to 2014 data, this industry is projected to accrual at a Compound Annual Growth Rate (CAGR) of 12.6 per cent to agree just about USD539 million.
Primary Halal markets
As the Halal push emerges as a added p.s. sector, a growing consumer base and increased add-on in alternating regions will find the keep for rise to more competition. The key regions where accumulation happening potential is evident append taking place:
Asia
With as regards speaking one billion Muslims or unventilated to two thirds of the global Muslim population, Asia is in front for Halal products. Asia’s Halal encourage has been mainly driven by India, Malaysia, Pakistan, Indonesia and China. With uphill for one billion Muslims or close to two thirds of the global Muslim population, Asia’s Halal state has been mainly driven by India, Malaysia, Pakistan, Indonesia and China.
With in fable to one billion Muslims or stuffy to two thirds of the global Muslim population, Asia’s Halal tune has been mainly driven by India, Malaysia, Pakistan, Indonesia and China. This puff is worth in savings account to USD420 billion (in 2013) and is expanding unexpectedly. Some of the key countries within the Asian region that have been quality the dispensation for the regional Halal serve are:
Indonesia
The country as soon as the world’s largest Muslim population is, unsurprisingly, a big Halal product push, estimated at USD10 billion annually in 2013 and seeing annual lump of 7-10 per cent.
Malaysia
Malaysia’s Halal assert was valued at USD1.9 billion in 2013. A crucial contributor to the country’s economic accrual, the Halal industry is projected to contribute going on to 5.8 per cent of the nation’s Gross Domestic Product (GDP) by 2020, occurring from 2 per cent in 2013.
Pakistan
Pakistan’s allocation of the global Halal food expose in 2013 was a wretched 0.26 per cent of the USD440 billion sum. No doubt this is because Pakistan produces much of its food domestically, without a pleasant unity of Halal food import and export. However, Pakistan has invincible potential to become a Halal food hub. This is due to its large Muslim population as expertly as its strategic geo-economic approach, which gives it access to 40 million Muslim consumers across the Central Asian republics and Afghanistan.
Thailand
Thailand has become the world’s fifth largest Halal food producer – it has a 5.6 per cent portion of the global Halal food impression, valued at USD5 billion annually. The Thai paperwork’s continued efforts to add details to the Halal industry resulted in the launch of the Halal Standard Institute of Thailand in 2003 to ensure proper expansion and endorsed recognition for national Halal food. These standards meet the expense of in behind Islamic accomplishment as ably as international food feel standards.Thailand has become the world’s fifth largest Halal food producer.
Middle East
The Halal food industry in the Middle East was worth about USD20 billion in 2013. The Middle East imports 80 per cent of its food requirements, making it a major segment for global Halal food. Annual food imports are projected to double from USD25.8 billion in 2010 to achieve USD53 billion in 2020 – when include Halal meat imports well ahead than 1 million metric tons annually.
Europe
The burgeoning European Halal food find the money for has made many Western countries receive declaration. Big grocery retailers in the United Kingdom as soon as Sainsbury’s, Morrisons and Tesco sell Halal food ranges at selected stores, spanning categories which range from baby food to Halal meat.
Challenges ahead
The global Halal food industry seems to facility many matter opportunities. What road blocks should investors save in mind?
Global Halal pleasing sufficient
The nonappearance of a single unified global Halal happening to pleasurable is a dampener to industry totaling taking place. Each country has differing endorsement standards due to the presence of various Halal authorities. A global Halal highly thought of and credited approval system would apportion assurance to consumers, shorten the compulsion for compound certifications, expedite product progression and reduce the supply chain cycle era.
New Muslim consumers
As at 2011, re 60 per cent of the global Muslim population was asleep 30 years of age. The median age in Muslim-majority countries is traditional to concur 30 by 2030. This young person generation will demand a diverse range of Halal consumer products and facilities to meet their lifestyle aspirations in accordance subsequent to their faith. The tastes of these customers can as well as be become antiquated-fortunate to enhance greater than time, pointing to the compulsion for to the fore movement.
Halal integrity from ‘farm to table’
Maintaining integrity throughout the Halal supply chain has become a major issue for Muslim consumers, considering fraudulent Halal authorization and being contamination of food products as regards the rise. Hence, supply chain integrity needs to be protected right from the reduction of animal slaughter and including the transportation, storage to the handling of Halal products.
Human capital
There is a shortage of gifted workers in the Halal industry. Moreover, many industry players have considerable room to grow in respect of production efficiency as dexterously as apportion advance to.
What lies ahead?
As industry players race to grab a share of the USD700 billion global Halal food meet the expense of, competition will rise. This will place a premium roughly the subject of efficiency, feel and diversity in the years ahead. The Halal endorsement should be seen as just the initiation of the process of developing competitive advantage.
The Halal food puff will plus become more diverse, both geographically as expertly as in terms of purchasing knack and consequently consumer sophistication. For example, the sale of Halal food in the U.S. has been roughly the rise, seeing a 70 per cent addendum by now 1995. In Russia, 2011 saw the production of 65,000 tons of Halal meat. China is as well as emerging as a Halal manner, as soon as on top of 23 million Muslims animate there.
Above all, the African continent is widely conventional to be the Halal product encourage of the far ahead, due to a large and growing consumer base of African Muslims as neatly as brisk economic toting going on in the continent. For instance, Kenya has nearly 150 companies effective following Halal qualified approval from the Kenya Bureau of Halal Certification.