The Global Halal Food Industry Will Thrive as the Market Grows

Alicia Buller - Arab News

London: Driven by new entrants, the global Halal food and beverage (F&B) market will thrive over the next five years. According to the State of the Global Islamic Economy report, the industry is expected to grow from US$1.24 trillion in 2016 to US$1.93 trillion by 2022.

The report jointly released by the Dubai Islamic Economy Development Centre (DIEDC) and Reuters shows that the growth in Muslim spending on food and beverages is almost double the global growth—creating huge opportunities for investment and creating global Halal food brands.

'Halal food is the largest and most diverse sector in the Islamic economy. New entrants have already entered the market, and product offerings have firmly moved beyond meat-based products to include confectionery, ready meals, snacks and children's food.'

In comments on the report, Imran Kausar, founder of the London-based multinational Halal food company Haloodies, told Arab News: 'Led by innovative and consumer-centric brands, Halal opportunities will continue to grow. Halal brands that appeal to mainstream audiences will open up Halal food to a wider audience.'

The report said food and beverages lead Muslim consumption, followed by clothing and apparel at US$254 billion, media and entertainment at US$198 billion, tourism at US$169 billion, and pharmaceuticals and cosmetics at US$83 billion and US$57.4 billion respectively.

The report noted that established enterprises are expanding at home and abroad through franchising, and multinational companies have also made large-scale investments in Muslim-majority markets, with demand expected to rise.

The report said investment and sovereign wealth funds are particularly active, and some Halal investment funds are under development.

Family-friendly Halal travel is another growth market, with Muslim tourism reaching unprecedented heights and travel demand also aligned with Islamic values—from hotels and beach resorts to dining options and airlines.

In the Gulf Cooperation Council (GCC), Halal hotel chains are emerging, and family-friendly attractions are also developing.

In the UK and globally, a large number of Muslim online travel agencies, like travel agencies for Muslim travelers, have also emerged. In 2016, Muslim spending on tourism was US$169 billion, expected to increase to US$283 billion by 2022.

Designer brands and boutiques are also developing new modest fashion lines and Ramadan collections.

The report said: 'Emerging fashion brands are also making progress globally, especially in hijabs, gaining increasing attention by spreading the word through social media.' Modest sportswear is a striking fashion area, with Nike acting just like Denmark's Hummel. In 2016, Muslim spending on clothing was US$254 billion, expected to reach US$373 billion by 2022.

Romanna Bint-Abubaker, founder and CEO of the global modest fashion brand Haute-Elan, told Arab News: 'As the world's first modest fashion marketplace, we welcome international brands to produce collections and items for the fastest-growing global consumers (Muslims). Our main problem as a marketplace is that the current supply cannot meet demand, and our consumers are still forced to go to the high street to meet their basic needs.'