The Development of the HALAL Market and the Role of HALAL Certification

The rapid growth of and interest in HALAL food has attracted great attention across the entire food industry. According to the World Halal Forum (WHF), global HALAL food and beverage trade is currently estimated at about US$1.4 trillion per year (Farouk, 2013). The global HALAL market is reported to currently account for 16% of the entire global food industry, and in the near future will account for 20% of global food trade, with Asia, Africa and Europe accounting for 63%, 24% and 10% respectively (van der Spiegel et al., 2012).

The growth of the Muslim population and the economic development and rising disposable income of Muslim countries are the main drivers of HALAL growth (in Farouk, 2013). According to statistics, the global Muslim population was 1.62 billion, accounting for 23.4% of the world's 6.9 billion population in 2010. Europe's Muslim population is currently estimated at 44.1 million, about 2.7% of its total population, growing at 1.8% per year (in van der Spiegel et al., 2012).

Many survey-type studies show that 75% of American Muslims and 84% of French Muslims always eat HALAL meat. In addition to religious values, consumer motivations behind HALAL food stem from some general principles of Islam: protecting life, protecting offspring, and maintaining self-respect and integrity. Health, respect for animal welfare and a degree of acculturation are also considered important drivers (in Bonne and Verbeke, 2008).

The need for standardization

Muslim consumers increasingly hope for and demand quality assurance methods that guarantee HALAL process standards. This approach requires a formal certification and labeling strategy to assure consumers of the quality and authenticity of HALAL meat, while improving shopping convenience and choice. HALAL certification is not yet globally standardized, but its need is internationally recognized. In addition to its significance and consumers' perception of it as a 'quality certification,' HALAL certification also provides reliable and independent verification—a method of proving claims. 'True HALAL' has caused controversy among certification bodies and Muslim countries, because HALAL is broadly defined in terms of the choice and effectiveness of stunning methods in animal slaughter.

A challenging process

HALAL is a custom-related process and is therefore difficult to control and guarantee. From the consumer's perspective, it is difficult to assess and verify even after consuming the product. Therefore, consumers must rely heavily on the seller and/or trust the information provided on the product label to guide their purchases. In the case of HALAL food, this trust in product labels concerns all process attributes of HALAL food, including handling and safety. The latter relates to the effectiveness of the slaughter process, which can cause complete exsanguination of the animal, thereby ensuring that blood—a potential source of bacterial contamination—is removed, producing healthier meat.

The concept of HALAL certification was proposed by Muslim food and technology experts in the United States in the mid-1960s, as a necessary safety measure for Muslims living in non-Muslim societies, with the aim of maintaining their Muslim identity and fulfilling their customs. HALAL quality standards were initially intended to cover the supply and manufacture of processed food, cosmetics, pharmaceuticals and medical products. However, it has gradually expanded to involve HALAL product logistics services. The concept of HALAL is no longer limited to food or other products, but covers the processes of handling, packaging, storage, transport and distribution. HALAL certification is considered a prerequisite for entering the global HALAL market, helping enterprises meet local needs, expand markets, and increase sales and revenue (Mathew et al., 2014; Noordin et al., 2014).

EU legal background

Under EU law (EC/93/119 and EC/1099/2009, effective 1 January 2013), pre-slaughter stunning is a mandatory requirement in Europe, intended to ensure that animals are unconscious and that slaughter does not cause them anxiety, pain, torment and suffering. This legislation has caused great controversy among Muslims, because they worry that stunning will kill the animal before slaughter. In many EU countries, religious slaughter is exempt from stunning, in line with the religious freedom granted by Article 9 of the European Convention on Human Rights. Therefore, in licensed slaughterhouses or during religious festivals, slaughter is carried out without stunning, to ensure the animal is healthy and has not been harmed before slaughter. This conflict is guided and influenced by different notions of what constitutes 'true HALAL.' This in turn hinders the development of and harmony in global HALAL standards. For example, Malaysia's standard, revised in 2009, initially identified stunning as 'not recommended,' including a reference to pre-slaughter stunning under certain conditions. Despite these differences, both methods have been welcomed by major UK retailers. These retailers sell meat from both pre-stunned and non-stunned animals, in order to respond to customers' ideas.

Choosing the right HALAL certification

It is estimated that there are currently about 122 HALAL certification bodies worldwide, including local government departments responsible for HALAL certification in countries such as Malaysia, Indonesia, Singapore, Thailand and the Philippines. Some of these certification bodies are non-profit organizations, government agencies, private for-profit enterprises, and some individuals. It has also been reported that, in this situation, some groups and individuals have had to certify their own products. In addition to reputation and the recognition and acceptance of importing countries (such as Malaysia, Indonesia, the UAE, etc.), Chaudry and Riaz (2014) also identified important criteria for selecting a HALAL program and HALAL certification body as follows:

1. Resource availability: responsiveness in handling paperwork; timely provision of Muslim inspectors to the factory; annual routine inspections at the prescribed frequency

2. Willingness to work with the company to solve problems

3. Ability to clearly explain their HALAL standards and fee structure

4. Whether the agency's HALAL standards meet the company's needs in the market; referring to the level of acceptance among consumers and importers