ASIF INTERNATIONAL SDN BHD, Malaysia
OPPORTUNITIES
IN THE
GLOBAL HALAL MARKET
By
Abdul Kabur Ibrahim
PAK - ASEAN WORKSHOP ON HALAL FOOD PRODUCTION
11 – 12 March 2009, Karachi
Pakistan
GLOBAL HALAL MARKET
HALAL means what is permissible in Islam. Halal Food is tayyib –
slaughtered according to the specific parameters of Islamic law, good,
wholesome, healthy, untainted during the stages of processing,
packaging, storage, transportation, & cooking
The HALAL Market is fast becoming recognized as a vitally important
emerging market sector. It is a new market force that should not be
overlooked.
With a global consumer base of about 1.7 billion, the Halal market is
estimated to be worth trillions of US Dollars and ripe for the picking, and
thus it is time that companies with halal products and services should act
fast to reap the potential returns
GLOBAL HALAL MARKET
The reason for this vast thriving market goes hand in hand with halal
products being widely recognized for its safety and quality assurance. This
worldwide demand is not restricted as consumers also consist of people
from diverse races and religious beliefs, thus providing a huge boost to
the halal industry
Players from every sector of the industry, from the huge multinationals
down to small enterprises are looking to capture their share of this
growing market. Nestle, TESCO, Colgate etc are some examples
Currently, the Halal sector is low on available data and research, and the
companies that can best understand this emerging market with its
complex customer base, plus all the issues relating to certification and
standards are likely to be the most successful..
HALAL PRODUCTS
HALAL PRODUCTS
HALAL Products includes both Food & Non Food Items.
HALAL Food is not only Meat and Poultry but also other Food Items
such as:
- Confectionery
- Canned & Frozen Food
- Dairy Produce
- Bakery Products
- Organic Food
- Herbal Products
- Beverages etc
HALAL PRODUCTS
HALAL PRODUCTS – CONT’D
HALAL Products also includes Non-Food products such as:
- Cosmetics
- Toiletries
- Beauty products
- Pharmaceuticals
- Leather products
- Perfumes etc
HALAL SERVICES
HALAL SERVICES
Besides merchandise, HALAL Services are also important components
of the HALAL market:
- Islamic Banking
- Securities & Bonds
- Travel & Tourism
- Supply Chain & Logistics
- Education & Training
- Food Services
HALAL Logistics is important to ensure that a HALAL product remains
HALAL from its origin to the consumer – Farm to Fork
SIZE OF THE GLOBAL HALAL MARKET
SIZE OF THE GLOBAL HALAL MARKET
The Global Food Market alone is estimated at USD 600 billion. This
amount is calculated based on the world Muslim population of about
1.6 billion.
Although our market analysis is based on Muslim consumers, we cannot
overlook the non-Muslim (Cross over markets) consumers/markets. The
demand potentials in the non-Muslim countries are even larger.
Again our statistics are based on Food only. If we include other Halal
products and services and also the potential non-Muslim consumers,
the market could be worth trillions of Dollars.
MARKET OVERVIEW
World Muslim Population
Continent
Pop 2008
(Million)
Muslim 2008
(Million)
% of Muslims
Africa
967
462
47.8
West Asia
225
199
88.3
South Central Asia
1,683
639
37.9
South East Asia
586
226
38.6
East Asia
1,557
40
2.5
Europe
735
51
7
N. America
332
6.8
2.2
S. America
577
3.1
0.42
Oceania
33
0.6
1.5
_________________________________________________________________
Total
6,695
1,628
24.3
Islamic Source
1,791
26.7
Source: www.islamicpopulation.com
MARKET OVERVIEW
Estimated Global HALAL FOOD Market Value
Region
Muslim Pop
2008, Mils
Per capita food
HALAL Food
expenditure Value
Market
p/a USD
Mils USD
________________________________________________________________
Africa
462
250
115,500
West Asia
199
570
113,430
South Central Asia
639
300
191,700
South East Asia
226
350
79,100
E. Asia
40
175
7,000
Europe (inc Russia)
51
1,250
63,750
N. America
6.8
1,750
11,900
S. America
3.1
500
1,550
Oceania
0.6
1,500
900
_________________________________________________________________
Total
1628
USD 586,830
Source: www.islamicpopulation.com & Euromonitor
MARKET OVERVIEW
From a market perspective, the traditional major target markets remain in
Asia and the Middle East (West Asia). However, there are influential
developing Halal markets in the UK, Europe and the USA with significant
market size.
The developing Halal markets of Europe and the US play an interesting
role, because they are markets that also play defining roles in other
markets around the world
As the dynamics within the Muslim world change, and globalisation trends
continue to shape people’s tastes, habit and spending patterns across the
world, we are likely to see moves in the developing Halal markets having
increasingly influential roles in the established markets of the Middle East
and Asia.
Now let us look at the specific markets:
SPECIFIC MARKETS
AFRICAN MARKET
Northern Africa (Muslim
Population)
Egypt – 71 m
Algeria – 33 m
Morocco – 31 m
Sudan – 30 m
Others – Tunisia & Libya
Western Africa (Muslim
Population)
Nigeria – 65 m
Niger – 14 m
Mali – 13 m
Senegal – 11 m
Ivory Coast – 12 m
Ghana – 7 m
Guinea – 8 m
Others – Mauritania & Togo
Central Africa (Muslim
Population) – 17 m
Cameroon, Chad & DRC
Southern Africa (Muslim
Population)
South Africa – 1 m
SPECIFIC MARKETS
AFRICAN MARKET – CONTD
Northern Africa
• Northern African countries have more than 90 % Muslims and are
ready markets for HALAL products
• Need to create more awareness on HALAL standards and certification.
Currently no HALAL standards or certification exist in these countries
• Good prospects to export Halal products and services to Sudan, Egypt
and Libya
SPECIFIC MARKETS
AFRICAN MARKET – CONTD
Southern Africa
•
Although South Africa is a small market but is an important market
for HALAL products. It has four HALAL Certification bodies with
various standards
•
Muslims in South Africa are very particular on HALAL products
and thus there is a ready market for Pakistani products
•
South Africa could also be a gateway to the other Southern,
Eastern and Central African countries. As such Pakistani
companies targeting the Sub-Sahara African countries should
utilize the South African networking.
SPECIFIC MARKETS
AFRICAN MARKET – CONTD
Rest of Africa
• Although there is a huge Muslim population in Western and Eastern
Africa, the HALAL market is still not developed.
• HALAL Standards and Certification are not available in this part of
the world
• Countries with good prospects for Pakistani exporters are Senegal,
Ghana, Guinea, Nigeria, Ethiopia, Kenya, Tanzania and Mocambique
SPECIFIC MARKETS
ASIAN MARKET - West Asia
(Muslim Population)
Saudi Arabia – 24 m
Turkey – 73 m
Yemen – 21 m
Iraq – 28 m
Syria – 17 m
Others – UAE and Other GCC countries, Jordan, Lebanon
Market Review
West Asia is a ready market for HALAL products and services. Although
there are no specific HALAL Standards in these countries, all products
imported or manufactured locally have to be HALAL (whether certified
or not).
SPECIFIC MARKETS
ASIAN MARKET - West Asia
Market Review –CONTD
• Most of the countries are open for imported products and as such there
is intense competition.
• In these countries the emphasis on HALAL is on Meat products. If the
mindset can be changed to include other food and non-food items,
then the market could be really huge.
• In the case of Turkey, it is already promoting itself as the Halal gateway
to Europe and are coming with its own standards and certification.
SPECIFIC MARKETS
ASIAN MARKET – South Central Asia
(Muslim Population)
India – 154 m (220 m)
Bangladesh – 127 m
Pakistan – 158 m
Iran – 69 m
Uzbekistan – 23 m
Afghanistan – 30 m
Others – Kazakhstan, Kyrgyzstan,
Sri Lanka, Tajikistan, Turkmenistan
SPECIFIC MARKETS
ASIAN MARKET – South Central Asia – CONTD
Market Review
•
South Central Asia is a massive untapped market.
•
Most are Muslim countries but without any HALAL standards or
certification
•
Pakistani exporters should target this region especially Iran and
all the Central Asian countries
SPECIFIC MARKETS
ASIAN MARKET – East & ASEAN
China – 39 m (130 m) (Muslim Population)
ASEAN – 226 m (Indonesia - 195 m, Malaysia - 15 m)
Market Review
•
ASEAN countries are one of the world’s leading suppliers and
also importers of HALAL certified products in the world. Although
these countries compete in the international front, there has been
substantial trading in HALAL products among them. For example
Indonesia is the biggest buyer of Malaysian HALAL food.
•
China is a huge and an untapped market.
SPECIFIC MARKETS
NORTH AMERICAN MARKET
A market of 6.8 million Muslims who are looking for HALAL products.
However HALAL products are not readily available in this market. The
following illustrates the potential for HALAL products in the US market:
• The US Kosher market, with a Jewish population of 5 to 6 million,
has been valued in excess of 100 billion USD annually. There is a
range of 86,000 certified kosher products on the supermarket
shelves.
• However, in Mintel’s recent survey in the US shows that only 15% of
the kosher product customers are Jewish. 55% buy kosher because it
is perceived to be healthier. 38% are vegetarian, 24% want dairy-free.
And 16% are Muslim!
This shows that Muslims consume more Kosher products than the Jews
SPECIFIC MARKETS
Why?
Because there are only 1,000 Halal certified products
available, and most are not available through the
mainstream retail outlets.
So for every Halal product on sale, there are 86 kosher
products to choose from! There are simply not enough Halal
products on the shelves!
US Muslims are spending
$16 billion a year
on Kosher products
Wouldn’t they prefer to buy
HALAL products?
SPECIFIC MARKETS
EUROPEAN MARKET
France – 6 m (Muslim Population)
UK – 1.5 m
Germany – 3.1 m
Russia – 27 m
Bosnia – 2.34 m
Others – Ukraine, Albania, Italy, Netherlands, Bulgaria
Market Review
•
Relatively a small market but a serious market with high
purchasing power
•
Good prospects for Pakistani Exporters in UK, France and
Germany
•
Russia and Other markets – need to create awareness
MARKET FEATURES
• Since everyone is noticing Halal now, the competition for the Halal
sector is getting intense.
• Halal is more and more a complete range of product offering in
supermarkets chains worldwide, as well as in 5-star hotels and
restaurants and fast food chains, airline meals, school dinners, military
and even prison rations.
• We see this phenomena applying not only on food items. Personal
hygiene and healthcare products, toiletries and cosmetics are all
appearing as Halal options. Once Halal is understood as a lifestyle
choice, the range of option increases exponentially.
• So the question naturally arises, where to find Halal certified products?
Because most of the Muslim majority countries do not consider Halalcertification necessary – or have not done till now – they cannot provide
Halal certified products to the international markets.
MARKET FEATURES
• Because with the movement of Halal products around the world,
the increase in awareness of Halal in general, and in turn added
value surrounding Halal, and of the holistic and interdependence of
the entire Halal value chain, we are seeing entirely new sectors
emerging, relating to Halal logistics, security, auditing and industrial
development.
• With major investment in Halal production and manufacture at one
end of the chain, and major investment in the retail sector at the other
end, maintaining the integrity of the Halal chain at all points in
between is becoming increasingly important.
• The Halal integrity in the handling, storage, warehousing, and
transportation by road, sea and air of Halal certified products, and
also dedicated Halal-certified zones are fast becoming a reality.
MARKET FEATURES
• The creation of controlled Halal – only industrial food parks, free zones,
DistriParks will be part of the future of this Halal industry. As the market
demand continues to increase, more links in the supply chain will be
created.
LIMITATIONS
LIMITATIONS & CHALLENGES
• Currently there is no single standard that is recognised worldwide.
• There are also numerous Certification bodies worldwide, of which
their recognitions vary from country to country. The World HALAL
Council which monitors the various Certification bodies has not been
able to come up with a single standard for its members.
• Lack of data on HALAL Trade - There is no proper classification of
HALAL products under the Customs code and as such data on
actual trade are difficult to obtain
• Most Muslim countries do not impose Halal Certificate as a
compulsory requirement
• In Pakistan there is no recognised Halal Certification body and as
such its products may not be accepted in some countries
OPPORTUNITIES & RECOMMENDATIONS
OPPORTUNITIES & RECOMMENDATIONS
There are ample opportunities for Pakistani Companies/organisations
to develop its Halal Industry and to tap the expanding Global Halal
Market.
1.
Pakistan should develop its own Halal Standard (probably with
the assistance of ASEAN countries) and a Certification Body
which should be recognised by the World Halal Council and its
members.
2.
There is a big potential for Pakistani Companies to manufacture
and export Halal Certified products to the world market.
OPPORTUNITIES & RECOMMENDATIONS
- There are about 1.7 billion Muslim consumers of HALAL
products in the world. The number is increasing rapidly. With
increasing awareness, more and more countries are requesting
for HALAL certified products. The demand from non-Muslims are
also increasing.
- More and more Supermarkets and Hypermarkets are adding
HALAL Shelves to attract ethnic Muslim population in non-Muslim
countries egs. TESCO in UK and CARREFOUR & AUCHAN in
France
- Around 80 per cent of the Halal food industry is in the hands of
non-Muslims. The Brazilians have been big halal producers for
decades. Three-quarters of chickens exported by France are
halal. Being a Muslim country, Pakistan is in a more advantaged
position to tap this growing Halal market
OPPORTUNITIES & RECOMMENDATIONS
2.
Pakistan could promote itself as the Halal Gateway to Central
Asia and the Middle East. This would attract investments into
Pakistan in Halal products manufacturing especially from nonMuslim countries which are eying on these markets.
3.
By developing its infrastructure and facilities such as Halal Parks
and Logistics, Pakistan could be a Regional Halal Hub in the
South and Central Asian region. This would further attract
investments and increase in exports.
4.
There are also opportunities to develop Halal Tourism in Pakistan
– Halal Tourism Activities, Halal Airlines, Halal Restaurants and
Halal Compliant Hotels
OPPORTUNITIES
5.
Pakistan is also encouraged to develop itself as a centre for Halal
Research, Science and Technologies, which could give the
country more credibility in the International market.
6.
Huge potential for Islamic Financial services, which is an ally of
Halal. Pakistan is already becoming an important player in Islamic
Finance.
Thank You
HALAL is on the move.
It is being reborn into the age of globalisation, and indeed,
globalisation suits the nature and quality of HALAL.
HALAL is made to be global.
HALAL is for everyone.
THANK YOU