The Global Market Potential of Halal

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International Conference & Expo on Halal Industry

Lahore, Pakistan

Presented by: Abdul Malik Kassim

State Minister for Religious Affairs,

Domestic Trade And Consumer Affairs, Penang, Malaysia

Presented at

Halal Research Council Conference www.halalrc.org

Held at Expo Centre, Lahore - Pakistan

World Muslim population of 1.83 billion in 2009 out of 6.5 billion World population

With average annual growth rate of about 1.80% per annum. approximately 117,000,000 per yr. increase which does not include conversion which on the rise currently.

Global Halal products market is estimated at US$2.3 trillion excluding Islamic banking

. * personal care & cosmetics ( 10%)

F&B (67%), pharmaceutical ( 22%),

If we include service sectors for the Halal market, the potential size of total market is

ASTRONOMICAL…

The trade in Halal food is enormous with est. annual halal food value at US $347 billion globally

HALAL

lucrative market and huge opportunities.

Awareness and interest in Halal products has increase tremendously among Muslim and Non-Muslims as well.

Huge purchasing power among Non-Muslim countries.

Consumer’s views on Halal products are not only confined to religious viewpoint but the

CONFIDENCE

that comes with the Halal Branding.

Halal :

HEALTHY, WHOLESOME & HYGIENE

7.0%

Percentage of Muslim population

1.06%1.5%

24.1%

Asia Pacific

Middle East-North

Africa

Sub-Saharan Africa

Europe

Americas

47.81%

PEW Research Centre’s Forum on Religion & Public Life.Mapping the Muslim

Population. October 2009

MUSLIM POPULATIONS BY REGION

Asia-Pacific

Middle East-North

Africa

Sub-Saharan

Africa

Europe

Americas

World Total

Estimated 2009

Muslim Population

972,537,000

315,322,000

240,632,000

Percentage of

Population that is

Muslim

24.1

91.2

Percentage of

Population Muslim

61.9%

20.1

30.1

15.3

38,112,000

4,596,000

1,571,198,000

5.2

0.5

22.9

2.4

0.3

100.0

Key Halal Market

Algeria Bahrain Egypt Indonesia Iran

Iraq Jordan Kuwait Lebanon Malaysia

Morocco Oman Qatar Saudi Arabia Syria

Tunisia Turkey UAE Yemen Pakistan

Combined population of key Halal markets : 652 Million

Key Halal Markets in Non-Muslim countries

India 140million France 6 million

China 40 million Germany 3 million

USA 8 million UK 1.5 million

Phillippines 6 million Canada 800,000

Asia

Malaysia

Country with a majority Muslim population (60.4% Muslim of a total population of 27 million

) ( Source: Department of Statistics 2008)

Becoming an international halal hub

Malaysia is well-positioned in being the leader in developing the

Halal industry.

In the midst of helping out to set global standards for Halal certifications.

Best example in the world in terms of rationalization for the labeling of Halal food (source: UN)

M’sia’s active role in the OIC and position as the home of the Islamic

Financial Services Board (IFSB) enhance M’sia as the market leader in the provisioning of halal products and services throughout the world.

Thailand,

known as World’s Halal Kitchen, is currently the fifth largest halal food exporter and recognized as Halal centre of excellence in science and testing.

Even Muslim minority countries in

Singapore

halal food business is good business.

have shown that the

The Muslim community forms only 16% of the 3.8 million population in Singapore, the halal food industry is big business in this cosmopolitan city.

Mc

Donald’s, A&W

,

KFC

and

Taco Bell

are some international brands that have gone 100% halal in Singapore.

Brunei

is currenly co-operating with Australian companies in order to combine its role in the Muslim world with

Australia’s track record in safe, high quality food production.

China

is one of the world's most eye-catching halal food markets, as

Muslims there total more than 30 million, or 2.3% of China's population

Growing demand for halal food -

Ningxia

Inner Mongolia and

Gansu

provinces and in

The key advantage of the Chinese Halal industry is access to cheap labor.

Europe

Largest Muslim population after Asia and Africa

The market size of halal food in Europe ~15 billion Euro this year

(est)

Has high purchasing power, rather than population size.Therefore, the European Halal market carries a lot of potential for good exporters.

51.2 billion Muslim population in 2009 with France having the largest Muslim population ~5.86 million

The European Supermarkets are now aggressively pursuing the

Halal food retailing.

The

port of Rotterdam

is currently creating a “Halal DistriPark “ to serve 30 Million Muslims in Europe.

The proposed £150m Super Halal Industrial Park (SHIP) at South

Wales , would make UK the landmark Halal centre for the region.

United States

According to the Islamic Food and Nutrition Council of America, the

U.S. halal market is estimated at $17.6 billion

5.

6.

7.

8.

1.

2.

3.

4.

The top 10

major halal food markets

are:

New York City, New Jersey and Long Island metropolitan areas

Los Angeles 9. Atlanta

Chicago

Detroit

10. Washington D.C

Houston

Dallas/Forth Worth

South Florida

San Francisco

Africa

South Africa, also known as the “rainbow nation” due to its diverse population, has also been actively hosting events focussing on Halal as a viable business concept.

With a Muslim population of approximately 1 million, South Africa is playing a major role in developing the regional Halal industry in

Africa and is constantly seen as the gateway to the immense African market.

Middle East

Net importers of processed food both for the food service and retail markets.

Members of the Cooperation Council for the Arab States of the Gulf

(GCC)

Have higher incomes and consequently higher per capita rates of consumption.Therefore, the region must import 80% of its food requirements.

Saudi Arabia and the UAE ~ most important import markets in the region. Currently Brazil is the largest exporter to the two countries followed by the EU and the US.

Saudi Arabian companies involved in the Halal industry include Al-

Radwa Farms, Al- Watania, Supreme Foods, Nash Meat and

Sunbullah. UAE companies involved in the Halal industry include Al-

Islami Foods, Al-Babeer, Al-Areesh, Arctic Gold, Royal Meat and

Emirates Meat.

Turkey is a growing Halal market and as a potential supplier of Halal products, particularly to EU counties with large Muslim populations such France and Germany.

Nestle

world’s largest food manufacturing corporation

McDonalds

– the world’s largest leading restaurant chain

KFC

– fully integrated poultry chain

Tesco & Carrefour

– world’s number one & two retail chain

Port Rotterdam

Europe’s largest & the world’s 3 rd largest port

Westports

one of SEA top 10 ports

MISC

– the world second biggest shipping company

CIMB

SEA biggest investment bank

Allanasons

India’s biggest meat ex

porter

Al-Islami

UAE halal food produces

It has been assumed that the trouble soon to be faced by the Halal market is shortages of demand, but contrary to prior believes

, the

shortage is on the supply, not the demand

PENANG

INTERNATIONAL

HALAL

HUB (PIHH)

PIHH VISION

Kuala Muda

Kepala

Batas

Bt.

Feringghi

Tg. Bungah

Tg. Tokong

Telok

Bahang

G’town

Sg. Pinang

Pulau

Betong

Ayer Itam

Jelutong

B’worth

Balik

Pulau

Gelugor

Sg.

Bayan

Nibon g

Baru

Bayan

Lepas

Pulau

Jerejak

Batu

Maung

Pulau

Gedong

Pulau

Aman

Seberang

Jaya

Bukit

Mertajam

Simpat

Ampat

Sungai

Bakap

Nibong

Tebal

LOCATION of choice for

Halal investments, businesses and industries

DESTINATION of choice for

Halal/family-concept tourism

RESIDENCE of choice for

Halal/Family-concept lifestyle and sustainable living

The whole Penang State is the Halal Hub!

CLUSTERS @PIHH

INDUSTRIES

(

Manufacturing

)

AGRO-BASED

LOGISTICS

LIFE SCIENCES

(Bio-tech/ Medical/

Wellness)

HOSPITALITY &

TOURISM

R&D

FINANCE

HUMAN

CAPITAL

MARKETING

SUPPORT

SERVICES

Holistic supply chain

CLUSTERS @PIHH

INDUSTRIES

(

Manufacturing

)

INDUSTRIAL PARKS

Ready Halal Park for investors

World-class Manufacturing

One-stop investor facilitation services

Availability of Incubators/ Test Labs /

Shared Services

Strong supply chain and support services

LOGISTICS

LOGISTIC HUB

Penang Port – Halal Status

Halal warehouse and cold chain facilities

Extensive ground infra

•Southern Thailand >Penang < Singapore

•North Sumatera-Penang

CERTIFICATION

HALAL Malaysia Certification

HALAL Malaysia Accreditation

Global standards (MS 1500, HACCP, GMP, BIHAPS, HAL-Q)

HALAL Integrated Industry

INDUSTRIAL PARK

Penang International Halal Park @ Penang Science Park

Focusing on attracting investments of strategic, niche and high technology industries from F&B, ingredients (i.e additives, enhancer) personal care and cosmetics to be located in the park

With ready land available, and a dedicated agency (Halal Penang) to promote the parks, Penang has attracted investments from China, Iran, and India to set up business at the halal park.

SHIP ( Super Halal Industrial Park Ltd)

Partnered with a venture-capital firm in UK to set up for Islamic goods.

European’s first industrial park

The proposed

£150m SHIP would provide services such as storage, product packing, meat selection and processing as well as R &D.

Halal Penang will provide advisory and development support throughout the project

Other Halal Industrial Parks

Form partnerships with representatives from Yemen, Medan, Indonesia and Pakistan in providing consultancy and other supporting services to develop halal industrial parks in respective countries

INDUSTRIES (

Manufacturing

)

Gelatine

Untapped Halal market potential

Only 0.7% of the gelatine produced in the world is deemed Halal

Commonly used as a gelling agent in a wide variety of industries including food, pharmaceuticals, photography, paper and fertilizers as well as elastic and adhesive materials.

About 42.4% of the world production of gelatine use pig skin, another 29.3% use bovine hides while bones constitute 27.65% as its source material.

Penang is looking for partners to invest in the gelatin production, which is considered critical and strategic project.

Source : halalgel.com

INDUSTRIES (

Manufacturing

)

Food additives and Food Enhancer

Food additives are defined by the European Community (EC) is

“any substance which are not normally consumed as food in itself and not normally used as a characteristic ingredient of food whether or not it has nutritive value, in the manufacture, processing, preparation, treatment, packaging, transport or storage of such food results, or may be reasonably expected to result, in it or its by-products becoming directly or indirectly a component of such foods".

 i.

ii.

iii.

iv.

v.

Categories includes : Common additives:

emulsifiers, i. salt thickeners, ii.sugar

anti-oxidants iii. vitamin

Colouring iv. starches etc flavour enhancer etc.

INDUSTRIES (

Manufacturing

)

FOOD ADDITIVES’ ECC-CODES (E-CODES)

E-numbers represent specific food additives, used by the food industry in the manufacture of various food products.

Formulated by the European Economic Community (EEC) and are universally adopted by the food industry worldwide

Many E-numbers contain unlisted haraam ingredients in them. Generally derived from animals and insects.

INDUSTRIES (

Manufacturing

)

Additives which are

ALWAYS

of animal origin, are

HARAAM such as:

E120 Cochineal

: a red colour obtained from female insects

E441 Gelatine

: derived from the bones and/ or hides of cattle and/ or pigs

E542 Edible Bone Phosphate

: an extract from animal bones

E904 Shellac

: a resin from the lac insect

Whilst some additives with a common code such as E47, can be either of animal or plant origin and this latter type needs to be investigated on a case-by-case basis per product/ manufacturer

INDUSTRIES (

Manufacturing

)

The main additives you need to be aware of are:

Glycerol / Glycerin / Glycerine

(E422)

- haraam if obtained from pork or non-halal meat sources.

Emulsifiers

(E470 to E483)

- haraam if obtained from pork or non-halal sources.

Edible Bone Phosphate

(E542)

- haraam if obtained from pork or non-halal meat sources.

LOGISTICS

Penang Port Accredited as Halal Port

Halal Penang envisages the Penang Port to be the 2nd best Halal port in the world, just after Rotterdam.

The port was awarded the MS1900 in May 2009. This accreditation from SIRIM certifies that the port’s operations comply with the Shariah law for Halal. With that, we are able to brand Penang Port as a Halal port.

Penang Port is the first port in Malaysia to achieve the

MS1900:2005 “Quality

Management Systems -

Requirements from lslamic Perspectives” for the provision of container handling services and dedicated warehouse services within

Penang Port.

Linkages with Rotterdam Port and other ports

Penang Port is now having direct discussions with the Rotterdam Port in Holland to collaborate on the development of Halal ports and linking the ports together. Port of

Rotterdam International has begin the discussions with other ports in the world ;

( Port of Sohar,( Oman) Port of Suape (Brazil) and Port of Positra (India).

Halal Logistics

Newer phenomenon whereby Syariah element is applied to logistics discipline.

Integral management of physical goods flow and information flow that complies with the aspect of Syariah

A supply chain approach that ensures integrity from :

Farm (upstreams) Fork (downstream)

(packaging/certification/transportation/ warehousing/handling of Halal products at ports)

As the integrity of Halal products become more important, logistics control plays a key role in facilitating the manufacturing,logistics and trade of Halal products throughout the world.

Halal supply chains include everything from the procurement and preparation of genuine halal ingredients to the manufacturing and delivery of the final product all the way to customer shelves.

The halal industry implements a 'farm to table' operation, presenting opportunities for various players in the logistics industry to climb aboard the process including ports, shipping and freight forwarding, warehousing and handling facilities.

Halal Certification Body

Branding of the halal certification systems carried out by Penang State Islamic

Religious Department (JAIPP) to a single dedicated department, the Halal

Management Division, enabling a more professional approach to certification.

Accreditation of Halal Certification Body - Henan

The Halal Management Division, JAIPP has managed to work in tandem with JAKIM

( Department of Islamic Malaysia) to accredit the halal certification body in Henan

Province, China ( Islamic Association of Henan).

Therefore, Halal certification issued by Islamic Association of Henan is recognized by

JAKIM, Malaysia.

Penang State Islamic Religious Department (JAIPP) is in works to accredit other halal bodies.

CLUSTERS @PIHH

AGRO-BASED

LIFE SCIENCES

(Bio-tech/ Medical/

Wellness)

Key Project : Juru Beef

Cattle Rearing

Integrated Abbatoir & Meat

Processing

Pharmaceuticals

Medical Devices

Cosmetic & personal Care

R&D

Halal R&D CENTRE

 Halal Science Centre, Chulalongkorn University

Halal Food Science Centre, Prince Sonkla University

Halal Products Research Institute, UPM

Halal Industry Research Centre, IIUM

University Science Malaysia

HALAL Science & Technology

AGRO-BASED

International Halal Leather Trading Hub

Penang to become the first international halal leather hub in the world.

The venture with Halal Industries UK (HIG) would see Penang becoming the central hub for the halal leather supply chain including importing, certifying and trading with halal leather producers from China, India, Pakistan, Bangladesh and Brazil.

The total skin and hide market in the world is estimated to worth US$100bil

(RM341bil) with products ranging from apparel, accessories, bags, wallets and furniture. Penang is well-positioned to serve the halal leather industry due to its strategic location and investment-friendly infrastructure.

Lifesytle pertaining to halal leather

LIFE SCIENCES

(Bio-tech/ Medical/ Wellness)

Global Cosmetics Market Size & Global Halal

Cosmetics 2010

Total Global

Cosmetics Market

Size

USD $334 billion

Total Halal Cosmetics

Market Size

USD $ 13 billion

The growth of the Halal cosmetics market currently worth an estimated USD$ 560 million worldwide.

The halal cosmetics still at INFANCY.

Consumers are switching to halal PC&C due to concern over the health & environmental hazards (i.e

swine placenta in anti-wrinkle cream, others linked chemical cosmetics to cancer and birth defects

& cruelty against animal testing)

Demand :

App. USD$150 million Halal cosmetics distributed to UAE each year

Market size for

PC&C in Middle East regions ~USD 560 million

In Saudi Arabia alone the total sales for cosmetics reached USD 1.3 billion in 2006.

CLUSTERS @PIHH

HOSPITALITY & TOURISM

HALAL HOSPITALITY PARK

International Hotel Chain

– Syariah compliant

Spa & Wellness Centre

Dedicated Holistic hospitality development

Medical Tourism - syariah compliant medical centres

HUMAN CAPITAL

Training Facilities Available (PSDC)

Collaboration with World Halal Renowned Training

Academy

Professionals, Certifiers, Auditors, Scientists

HUMAN CAPITAL

Halal Penang is collaborating with PSDC and Penang International Islamic &

Technological College (KITAB) to develop skilled and trained Halal auditors.

Collaborating with education institutes in Riyadh to develop licensed and skilled

Halal auditors

Collaborating with 2 prestigious education institutes ; by developing Halal Catering syllabus

Recently collaborated with International Halal Integrity Alliance (IHIA), a non-profit organisation in M’sia created to uphold the halal integrity to train competent Halal auditors.

CLUSTERS @PIHH

FINANCE

Gateway to

GLOBAL ISLAMIC Financial Services

Vibrant Islamic Banking, Takaful & Financial industry

Presence of international financial institutions

Offshore Banking facilities

Linking businesses to Funders

– Islamic bankers, VCs

SUPPORT SERVICES

IT Infrastructure

– Traceability system

Niche Consultancy

Test Labs

Market Research

– muslim markets

FINANCE

Halal Ca

pital Market Conference

Will be held on 25 th

– 28 th

October 2010 at London

The conference event will take place over 4 days and will bring together leading professionals from the mainstream financial sector and the global Halal industry, senior managers of Islamic finance and businesses institutions exclusively dealing in the Halal sector and social and commercial investors.

ShariaUMEX

The Sharia Ummah Securities Information Exchange Ltd

(ShariaUMEX) is a dedicated securities information and trading gateway that covers news and information about Sharia compliant securities and Islamic finance from all of the world’s main markets.

ROTTERDAM PORT

Pakistan

QASIM PORT

PENANG PORT

LIFE

SCIENCES

MARKETING

PIHH

–the link of

global halal market

America

Role of

HALAL PENANG

Facilitation agency owned by of Penang State Government of

Malaysia

Role: Promote, facilitate and develop halal industries in PIHH

(Halal Penang)

Halal Penang Activities

Investor facilitation

Certification

Manufacturing

Trading

Services

PENANG HALAL TASK

• Business Matching

Trading partners

• Trade mission e.g. Henan Province, China

• Trade Fairs (Local & International)

MIHAS

World Halal Forum

FORCE

Contact:

PIHH Development

Halal Research Council

Sdn Bhd

192- Ahmad Block, New

Level 44, KOMTAR,

10503 Penang, Malaysia

Garden Town

Lahore, Pakistan

Tel: +604-2625444 Fax:

Ph: +92i42i5913096-8,

+604-2635444

Email:

Fax: +92i42i5913056 info@halalpenang.com

E-mail:

info@halalrc.org

Web :

Website:

www.halalrc.org

www.halalpenang.com

Thank You

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