“Halal” is undoubtedly an Islamic value, a code for Muslims to consume only what is permitted by Islam. However, there is also no doubt that it has become a very important and powerful Economic value in today’s world.
The reason for this vast thriving market goes hand in hand with Halal products being widely recognized for their quality assurance and the ‘Halal Label’ has become a symbol of “Good Quality Product”.
Therefore, this worldwide demand of Halal products is not restricted to Muslims only as non-Muslim consumers; from diverse races and religious beliefs prefer to buy products bearing the Halal Logo, thus providing a huge boost to the Halal industry.
International Market Size
As per the latest research by the World Halal Forum, quoted in TIME Magazine (May 2009), the total size of global Halal food market is worth about US$ 632 billion in 2009 and if we also include the non-Muslim consumers, the total figure will be much higher. Halal industry experts believe the size of total global Halal market (including all Halal food, non food products and services) ranges from a minimum of US$ 1.2 trillion to US$ 2 trillion per annum.
Pakistani Market Size
The level of Halal awareness is still very low as most Muslims believe that Halal is only about meat which is not true as Halal includes all the Food products, Non-food products and also services.
Pakistan is still developing its own Halal standards and there is no official Halal Certification body in Pakistan.
However, there are many International Halal certification companies who have their agents and offices working in Pakistan that can test and certify the Pakistani products as Halal.
Since Pakistan is a Muslim country so we have to assume that All Food & Beverage, All Cosmetics, All Toiletries, All Medicines & other related products produced and exported from Pakistan are Halal.
And our popular brands in Pakistan may also be known in the Sub Continent and also in Middle East. But Muslims of different ethnic background in USA, Europe, Africa or even Asia are not familiar with our Brands and may not buy our products.
A recent survey conducted by HDC Pakistan in China and Africa proved that the Muslim consumers (Chinese and Africans) were not familiar with even the most famous Pakistani brands and refused to buy Pakistani products as they didn’t find a “Halal Logo” on our products.
However, they all accepted and recognized the “Halal Logo” and picked up the products from the shelves when they saw the products with the brand label or logo of Halal.
Halal market is undoubtedly the biggest untapped market for Pakistani exports.
World Muslim Population
The Muslim population is growing at the rate of 2.9% per annum and is expected to be 30% of the world's total population by 2025. With this high increase, the global demand for Halal food and Shari’ah compliant products and services will continue to rise with a huge global demand. This will also give rise to more opportunities for companies to expand their reach.
The current estimated Muslim population is around 1.79 Billion, out of which the Muslims who live in non-Muslim counties consume and use other standard products because of the unavailability of Halal certified products.
Global Halal Players
In the West, USA, Brazil, Canada, Australia, New Zealand & France are the biggest Halal suppliers.
In the East, Thailand is the biggest exporters of Halal certified products after which Philippines, Malaysia, Indonesia, Singapore and India are the leading Halal products suppliers to the world.
Brazil exports 1 million frozen Halal chickens to 100 countries and 300,000 MT of Halal beef products to Saudi Arabia, GCC, Egypt and Iran annually.
France exports 750,000 MT Halal frozen chickens annually to Saudi Arabia, Kuwait, UAE & Yemen among other Muslim countries.
United States is the third largest beef exporter in the world and more than 80 percent of its frozen beef is Halal.
New Zealand is the fourth largest beef exporter in the world and 40 percent of its beef product s exports are Halal.
Where to find Halal Customers?
The countries with Muslims majority are the most obvious target markets for Halal products specially for meat and meat products. However, Muslims living outside the sub continent and Middle East are more in need of Halal products and services, as living in countries of non Muslim majority, they are very conscious of their religious belief and take care of what they eat and use. It becomes difficult at times, to search for Halal products, as the suppliers are scarce in most regions, which creates big opportunity for suppliers of Halal products.
In Europe, the market size of Halal Foods is estimated to be $66 billion. France having the largest share of approx $17 billion. In United Kingdom, only the Halal meat sale is worth over $600 million annually.
The American Muslims spend around $13 billion on Halal food products annually.
The GCC’s Halal food imports is worth approx $44 billion. Annual Halal Food Trade in India is worth over $ 21 billion. Indonesia’s annual Halal Food expenditure is over $70 billion.
Other Halal product importers include Saudi Arabia, Egypt, Iran, GCC, Africa, and other Muslim countries.
Continent wise break-up total Muslim population
Specific Target Markets for Halal Products:
North Africa: More then 181 million Muslims including Egypt 71m, Algeria 33m, Morocco 31m, Sudan 30m, Tunisia 10m & Libya 6m.
East Africa: More then 92 million Muslims including Ethiopia 37m, Tanzania 19m, Somalia 9m, Kenya 8m, Uganda 4.5m, Mozambique 4m, Malawi 2.5m, Eritrea 2m, Zambia 1.8m, Madagascar 1.2m and other countries.
South Africa: Only 1.2 million Muslims but important market as Muslims are very particular on HALAL products and thus there is a ready market for Halal products. South Africa also serve as a gateway for the other Sub Sahara African countries.
West Africa: More then 150 million Muslims including Nigeria 65m,
Niger 14m, Mali 13m, Ivory Coast 12m,Senegal 11m, Guinea 8m, Ghana 7m, Burkina Faso 7m, Mauritania 3m, Sierra Lione 3m, plus other countries including Togo, Liberia, Guinea Bissau, Gambia, Cape Verde and Benin.
Central Africa : 17 million Muslims including Congo 6m, Chad 5m, Cameroon 3m
More then 50 million Muslims including Russia 27m, France 6m, Germany 3m, Bosnia 2.3m Kosovo 2m, Albania 2m, UK 1.5m, Italy 1.4m plus other countries including Ukraine, Italy, Spain, Netherlands, Portugal, Greece, Norway, Sweden, Bulgaria and other countries. Its relatively small but a serious market for Halal suppliers due to its high purchasing power and clusters of Muslim population in smaller areas like France with 6 million Muslims, Germany with 3 million & Russia with 27 million Muslims.
West Asia: Mostly Muslim countries including Saudi Arabia 24m, Turkey 73 m, Yemen 21m, Iraq 28m, Syria 17m, Azerbaijan 8m, UAE 5m, Jordan 5m, Palestine 4m, Oman 2.5m, Kuwait 2m, Lebanon 2m plus other countries including Qatar, Bahrain, Cyprus. There are no specific HALAL Standards in these countries. All products imported or manufactured locally have to be HALAL.
East Asia and ASEAN Market: Muslim population is more than 360 million including Indonesia 195m, China 133m, Malaysia 15m, Philippines 6m, Thailand 6m, Myanmar 2m and other countries including Brunei Darussalam, Cambodia, Singapore, Hong Kong, Japan, Vietnam, Korea, Mongolia & Taiwan.
ASEAN countries are one of the world’s leading suppliers and also importers of HALAL products. They compete with each other in HALAL products but also do substantial trading among themselves. For example Indonesia is the biggest buyer of Malaysian HALAL food, creating a big opportunity for other Halal suppliers.
China is an untapped market for Halal products and Halal suppliers should concentrate on exports of Halal Products to China, Indonesia and Malaysia.
South Central Asia: More then 600 million Muslims (including India 154m, Pakistan 170m, Bangladesh 127m, Iran 69m, Afghanistan 30m, Uzbekistan 23m, Kazakhstan 7m, Tajikistan 6m, Turkmenistan 4.6m, Kyrgyzstan 4m, and other countries including Sri Lanka, Nepal, Bhutan & Maldives etc
It is a massive market for Halal products. Most are Muslim countries but without any HALAL certification.
India is one of the biggest buffalo meat supplier in Asia but its also a very big market for Halal products due to its huge Muslim population and its neighboring countries with land route with India can specially take advantage to push their Halal products in India.
Oceania: Population of only 0.6m Muslims in Australia, New Zealand, Fiji & other countries but the high per capita expenditure has made this small population, almost billion dollar market for Halal Food products.
Americas: The Muslim population in the Americas is almost 10 million (USA 6.4m, Brazil 1m, Canada 0.8m and other countries of Central America, South America & Caribbean).
American Muslims (particularly USA) are looking for HALAL products which are not readily available in their market.
The potential for HALAL products in the US market:
With a Jewish population of 5 to 6 million, the US Kosher market has been valued in excess of $100 billion annually with a range of 86,000 certified Kosher products on the shelves.
However, a recent Mintel’s survey in the US shows, that only 15% of the Kosher customers are Jewish. 69% non Jews buy Kosher because they consider Kosher products to be hygienic and good for health. And the balance 16% Kosher buyers in the US are Muslim!
It shows that Muslims consume more Kosher products than Jews
Because there are only 1,000 Halal certified products available in North America, and most are not available through the mainstream retail outlets.
So, for every Halal product on sale, there are 86 kosher products to choose from…
There are simply not enough Halal products on the shelves and US Muslims are spending $16 billion a year on Kosher products.
Power of Halal
Halal certified products are recognized as hygienic and of good quality, hence these are also in high demand amongst non-Muslims. Multinationals around the world are already part of the Halal trade and major hypermarkets in Europe and Asia sell Halal products.
Halal compliant improves quality standard and adds more value to the product. Halal Certified logo gives an international brand identity that is recognized and accepted throughout the world.
Halal now covers a complete range of products offered in supermarkets,
5-star hotels, Restaurants, Fast food chains, Airline meals, School dinners, Military food and even in Prison rations.
It has become a lifestyle choice including personal hygiene, healthcare products, toiletries, cosmetics and many more..
The movement of Halal products around the world has created the Halal value chain, with entirely new sectors relating to Halal logistics, Halal security, Halal storage, Halal Auditing and Halal industrial development.
In industrial development, dedicated Halal-certified zones are a reality today including Halal Parks & Halal Free Zones.