The US$2.3 Trillion Halal Consumer Market Plays an Important Role in the US Economy

In 2022, consumer spending in the global halal economy grew 9.5% year-on-year to US$2.29 trillion (halal economy = products and services based on Islamic ethics and values). New Jersey-based research and advisory firm DinarStandard presented its US opportunity findings from the latest State of the Global Islamic Economy Report 2023/2024 at an event co-hosted with the US Department of Agriculture (USDA) on 17 April. The tenth edition of the report (2023/24), first published in 2013, annually updates the halal ethical economy—including halal products, Islamic finance and lifestyle industries driven by 2 billion Muslim consumers, expanding into the broader global ethical consumer market. This year's SGIE report shows that in 2022, Muslims spent US$2.29 trillion on food, pharmaceuticals, cosmetics, modest fashion, travel and media. Islamic finance assets were estimated at US$3.96 trillion in 2021/22 and are projected to grow to US$5.94 trillion by 2025/26. The report's national-benchmark Global Islamic Economy Indicator (GIEI) across 81 countries ranks the US 26th. The US ranks 27th in halal food, 11th in Islamic-themed media and entertainment, and 15th in modest fashion. Malaysia topped the list for the 10th consecutive year, followed by Saudi Arabia, Indonesia and the UAE. Major developments in the US halal economy span everything from food to finance. The Halal Guys represents a successful QSR franchise model, now with nearly 100 branches. Other examples of successful US halal brands include the low-key Haute Hijab and Wahed in the Islamic ethical fintech space. In 2022, halal-related product imports by Organisation of Islamic Cooperation member states (Muslim-majority) were US$359 billion, and will grow at a CAGR of 7.6% to US$492 billion by 2027. In 2022, the US exported US$20.8 billion worth of halal products to the OIC, ranking 4th globally. The largest halal product export destination markets are Indonesia, Egypt, Saudi Arabia, the UAE and Malaysia. Investment in halal-economy-related companies increased significantly, reaching US$25.9 billion in 2022/23, a year-on-year increase of 128%. Compared with the previous year, the US ranked #23 in 2022 with a 17% increase. DinarStandard CEO and Managing Director Rafi-uddin Shikoh said, on the 10th anniversary of the SGIE report's release: 'By the grace of Almighty God, the SGIE report has grown into a global reference point that can assess the annual development of the Islamic economy across seven global sectors, while highlighting potential development areas. Over the past decade, the report has reached more than 113,000 readers in 85 countries, with more than 15,670 report downloads and more than 1,570 media mentions. Muslim spending increased from US$1.62 trillion in 2012 to US$2.29 trillion a decade later.' The SGIE report also highlights the social-impact development of the halal economy in achieving the UN's 17 Sustainable Development Goals (SDGs), including initiatives to address the worsening poverty and food security crisis, where the halal economy is showing promising signs of impact. The SGIE 2023/24 report was produced in cooperation with SalaamGateway.com, the largest Islamic economy news and media platform, and supported by Dubai's Department of Economy and Tourism (DET). This year's global strategic partner for the report is a US-based halal certification body.