By 2030, the active market of the global halal economy is expected to reach US$4.96 trillion.
Frost & Sullivan's recent analysis, 'Growth Opportunities in the Global Halal Economy,' finds that the halal economy is experiencing an upward trend as demand for halal products increases in both Muslim and non-Muslim countries. The main factors driving the halal industry are favorable demographics, government policies and private-sector initiatives. Non-Muslims' growing demand for halal food will be driven by its association with safe and healthy eating, while halal fashion and tourism should also gain increasing acceptance among more conservative non-Muslim consumers. The global halal economy market is likely to witness impressive growth, increasing from US$2.30 trillion in 2020 to US$4.96 trillion by 2030.
'As higher levels of halal trade and Islamic finance are likely to accelerate infrastructure development, the halal economy is expected to become more integrated with global trade and supply chains,' said Neha Anna Thomas, Senior Economist at Frost & Sullivan. 'In addition, governments are strengthening regulatory and policy support through national master plans and the expansion of certification scope, which will promote the growth of the halal industry.'
Thomas added: 'Transparency and traceability of the halal product value chain are crucial. Therefore, when formulating a halal economy master plan, governments should encourage the adoption of advanced technologies such as blockchain and the Internet of Things (IoT), while enterprises can cooperate with tech startups.'
To seize the growth opportunities in the halal market:
Governments worldwide must seek to unify halal standards and certification processes, to help reduce the number of certification requirements and promote halal commerce.
Food manufacturers should cooperate with technology companies to improve traceability and transparency while increasing consumer trust.
Global pharmaceutical manufacturers and raw-material suppliers should incorporate halal-certified products into their offerings, possibly through joint ventures, to capitalize on the growing demand for halal pharmaceuticals in Islamic countries.