The global Halal food market reached a value of USD 1.4 trillion in 2017. The growth of the global Halal food market is being primarily driven by health benefits offered by Halal food items which is continuously influencing the eating patterns of people. This has resulted in an increase in the consumption and acceptance of Halal food among non-Islamic communities as well. Moreover, food producers have been offering a wide variety of Halal food to consumers which has been positively stimulating the growth of the market. The consumption of such food items is also increasing due to a surge in the Muslim population worldwide. This, in turn, has significantly bolstered the growth of the market. Looking forward, the market value is projected to reach USD 2.6 trillion by 2023, exhibiting a CAGR of more than 11% during 2018-2023.
Halal, in the present time, has turned out to be a universal conception that covers the entire concept of fresh, clean, and healthier production as well as services of food. This is completely contradictory to the traditional notion, which was restricted to only slaughtering of animals according to Islamic law. It is no more a mere religious obligation but has moved beyond that to become a standard of choice for both Muslims and non-Muslims. The shift in consumer perceptions regarding such products offers strong opportunities for a substantially rapid growth of the global Halal food industry in the next eight years.
Despite growing Muslim population being the most vibrant factor fueling demand for Halal products worldwide, however, there are a few constraints expected to hinder the industry growth. A persistent confusing environment for establishing international Halal standards, mainly because they are framed by various types of organizations is a major restraint. These would include government owned and linked enterprises, independent Halal Certification Bodies (HCBs), private organizations, National Standard Agencies, regional bodies such as GCC Standardization Organization (GSO), the Association of Southeast Asian Nations (ASEAN), European Commission and international establishments including The Organization of Islamic Cooperation (OIC) and the Standards and Metrology Institute for the Islamic Countries (SMIIC) initiatives.
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The primary concern for the manufacturers is to determine the specific standard that is likely to offer them the best possible access to a target market. Also, these companies have to constantly update various certifications to optimize the trade process at several instances where these become mandatory for exports. Nevertheless, leading organizations for Halal standardization and accreditation have been taking steps to harmonize the standards.
Despite these uncertainties in the regulatory agenda prevailing in the present industry scenario, this sector remains vibrant and is expected to be an interesting area for innovation. Manufacturers have been trying to drive change in the entire value chain of this market from raw material, product development to finished product packaging, marketing and spreading the benefits of consuming these products along with the social media advertisements.
Food safety and traceability have become a major concern in the entire industry. It is highly expected that every stakeholder must be fully accountable and responsible for procuring, handling, manufacturing, and quality control of Halal foods. This may be attributed to the fact that a food-related illness, because of a minute mishap anywhere in the value chain, might destroy a company’s reputation, even if it is not specifically at fault. Hence, the safety & control regulations and policies require inputs and collaborations of every stakeholder in the value chain.
The market is expected to continue to build its momentum across the global supply chain. The most prominent testimony to this fast-growing nourishment segment is that it remains almost constant in terms of its traditional ideas in spite of minimal differences across different cultures and geography. Hence, this sector is expected to become a major source of growth in both Islamic and even non-Islamic economies.
[box type=”note” align=”” class=”” width=””]The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan[/box]