Why the Halal Industry Is Developing So Rapidly

An emerging industry.

Pew Research Center's population projections show that by 2030, the world's Muslim population is expected to grow to 2.2 billion, with the Asia-Pacific region leading at 59.2%, or 1.3 billion.

As the Muslim population grows, the global Halal industry is growing exponentially. As awareness and acceptance of the Halal concept among both Muslims and non-Muslims rise, this is a boon for industries such as food and beverages, clothing and apparel, cosmetics and pharmaceuticals, media and entertainment, tourism and finance.

According to statistics, the global Halal market share is a staggering USD 3.2 trillion. Even under the impact of recent economic crises and COVID-19, the Halal market has still shown strong momentum, becoming one of the world's hottest markets. The State of the Global Islamic Economy Report 2020/21, compiled by Dinar Standard and supported by the Dubai Islamic Economy Development Centre, projects that by 2024, global spending on Halal food and Halal beverages alone will reach USD 1.38 trillion.

Most consumers choose Halal based on a belief that Muslims should consume "Halalan Toyyiban" goods, which directly translates as permissible and wholesome. It is also worth noting that Halal is increasingly accepted among non-Muslim consumers because of its connection to animal welfare and overall healthiness. The Halal industry has now expanded beyond the food sector to include pharmaceuticals, cosmetics, health products, toiletries and medical devices, as well as service sectors such as logistics, marketing, print and electronic media, packaging, branding and financing. Following the Islamic finance industry, the Halal food market is becoming one of the most profitable and influential market segments in today's world food business.

Factors driving the growth of the Halal food market

Many key factors contribute to the industry growth of the Halal food market. With a large, diverse, well-educated young consumer base, the Halal economy can be considered one of the fastest-growing sectors globally. In addition, rising awareness among both Muslim and non-Muslim communities of Halal food and its hygiene and health positioning has led to increased consumption and acceptance of Halal food. As the global Halal food market continues to grow, demand for Halal food will also keep growing in countries unable to produce enough of it. In 2015, the main importers of Halal food among OIC countries were Saudi Arabia, Malaysia and the United Arab Emirates, with meat being one of the most popular imported foods. Other emerging countries such as Pakistan, Bangladesh, India and Indonesia have large Muslim populations and adhere to Halal dietary traditions. As many other countries rise economically, the growth in purchasing power of these Muslim-majority countries will prove astronomical. The same is true of the European market. Demand for Halal-certified products in Europe keeps growing, especially in countries with large Muslim communities such as the UK, France and Germany.

Reasons for choosing Halal food

As the Muslim population keeps growing and non-Muslim consumers come to accept it, more and more people, regardless of faith, are investing in Halal food. Halal products are essential for the Muslim community, but also a more humane and healthier choice for non-Muslim consumers. Under Halal law, when slaughtering an animal, only the trachea, throat and blood vessels are cut. This is important because the animal's spinal cord and nervous system are not severed. This process is not only more humane for the animal, but also eliminates the risk of cardiac arrest in the animal, avoiding blood clogging the animal's veins. This swift and humane process allows the blood to drain quickly. We have reason to believe that eating Halal meat may be healthier than non-Halal meat. As noted above, the meat is prepared by draining residual blood from the carcass. Blood is a good carrier of bacteria, so quickly removing it minimizes unnecessary risk. Consumers of Halal meat consider it "more satisfying" than meat from traditional slaughter methods, because it stays fresh longer, so the meat is more tender and tastes better. Besides the religious aspect of obtaining Halal products, more secular contributors are interested in the Halal guidelines on product preparation.