Global investment in Halal industry to set record by 2024

Investment in Halal industry is expected to reach $1.38 trillion by 2024.

Islamic economy is composed of Islamic financing, Halal food, fashion, media and entertainment, Islamic tourism and also medicine and cosmetics among which Halal food, with $1.17 trillion, is the second biggest section for Muslim consumers in 2019.

Supply of Halal products has seen 19 per cent increase from 2018 to 2020, 16,936 products increased to 20,482. 63 per cent of the products are from Asia then from Africa and the Middle East.

Malaysia has kept its first grade in Global Islamic Economy Indicator (GIEI) for the eighth year in a row with Saudi Arabia, United Arab Emirates (UAE), Indonesia and Jordan following that.

Muslim consumers which make 28.7 per cent of the world population are rapidly growing and the main players in the field of food are beginning to promote Halal section.

In 2019 Japan’s Seasoning and Foods Company Ajinomoto invested $85 million dollars to launch Halal production line in Malaysia which is set to be opened this year. At the same time a local Japanese company Sanichi Technology, for production of Halal gelatin which will be the first of its king in the entire region.

Development of the Halal food industry is the onset for beginning a massive potential market which is ix to be fed by the increasing and young Muslim population across Asia, Africa, Middle East seeking products and services in line with their Islamic methodology.

A study of Halal food style conducted in Singapore in 2021 showed that Muslim consumers in these countries lay the most confidence with institutes that have Halal certificates in Arabic language or symbols showing ingredients suitable for Muslims.

This is while national Halal legislations will help issue of Halal certificates and global trade.

Regional countries are balancing their Islamic economy strategies in order to meet the demands of market and boosting confidence of the consumers.

In October 2021, Pakistan with the second Muslim population in the world has passed new legislations regarding Halal reference to develop Halal products in domestic and international level.

Indonesia with the biggest Muslim population across the globe with 207 million people introduced the laws on Halal products in 2019. Based on that all products and services imported to the country should have Halal certificate.

Even countries out of the member states of the OIC, together with Singapore, the Philippines and south Korea have reached agreements with members states of the international body of Islamic countries to conduct different cooperation for import and export of Halal products and services.

This is while non-Muslim consumers have been attracted to Halal products for instance in Food&M in Britain has launched providing a list of Halal foods.

Due to the difficult legislations set to give Halal certificate, Halal foods have turned to a secure, healthy, hygienic and trustable food rather than merely a religion-based diet. Studies show that non-Muslims have a positive impact from Halal food products as they are confident that they are properly processed.

Those participating in a report by GEIE 2020/2021 by Dinar Standard say that their non-Muslim friends have developed a positive view on Halal foods mainly recognizing that as healthier and more hygienic.

Despite two chaotic years, Halal food section has bees subject to the least damage caused by COVID-19 and seen only 0.2 per cent decrease from 2019 to 2020.

Moving towards gaining cohesive Halal standard across the OIC countries will provide them the opportunity to improve global standards; hence, it is expected that Halal food industry will reach $1.38 trillion by 2024.