The size of the global Halal economy is expected to grow to around US$10 trillion by 2028. Spending and consumption of Halal products is on the rise, extending to non-Muslims as well.
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| The Halal market covers a wide range of products, from food and beverages to cosmetics, pharmaceuticals and finance... (Source: Getty) |
The global Halal market has been witnessing remarkable growth in recent years. This is due to the growing demand from Muslim consumers and the growing recognition of Halal products among non-Muslims. The booming Halal consumer market presents both opportunities and challenges for businesses looking to tap into this vast and potential market.
Halal, in Arabic, means “permitted” or “lawful”. The Halal market covers a wide range of products, from food and beverages to cosmetics, pharmaceuticals and finance. The Halal industry spans a wide range of sectors and is estimated to be worth trillions of dollars globally. The exponential growth of the Muslim population, coupled with increased awareness and adherence to Halal practices, has fueled the expansion of this market.
In an article published in 2021, aa.com.tr quoted information from the World Halal Union saying that international organizations estimate the size of the global Halal economy to reach over 7,000 billion USD in 2022 and is expected to increase to about 10,000 billion USD in 2028. The level of spending and use of Halal products tends to increase, expanding to non-Muslims.
Seize the opportunity
Diverse Consumers : One of the most significant opportunities the Halal market offers is the ability to reach a diverse and rapidly growing consumer base. According to the Global Islamic Economy (GIE) report, the Muslim population is expected to increase from 1.8 billion in 2017 to 3 billion by 2060. This large market is experiencing significant demand for Halal-certified products across different regions and demographics.
Market Segmentation: Businesses can capitalize on the Halal market by catering to niche segments within the Muslim community. This could involve offering specialized Halal products, such as organic Halal foods, eco-friendly cosmetics or Sharia-compliant financial services, to meet specific consumer needs and preferences.
Global Scale: The Halal market is not limited to Muslim-majority countries, it extends to Muslim-minority countries and non-Muslim consumers who seek Halal-certified products for ethical, health or quality reasons. Therefore, businesses have the opportunity to expand their business globally by tapping into these diverse markets.
Innovation and Creativity: As the Halal market continues to grow, there is still room for innovation and creativity in marketing strategies and product development. Businesses can differentiate their brands by offering unique and innovative Halal products that cater to emerging trends and consumer preferences.
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| The growing popularity of the Halal market has led to increased competition among businesses. (Source: Halal Food Council USA) |
Roll call challenge
Certification and compliance: Achieving Halal certification can be a complex and costly process, involving strict standards and regulations set by certification bodies. Businesses may face challenges in ensuring that their products comply with Halal requirements, especially if they operate in multiple markets with different certification standards.
Supply Chain Management : Maintaining a Halal supply chain from sourcing raw materials to manufacturing and distribution can pose logistical challenges for businesses. Ensuring the integrity of ingredients and production processes requires meticulous attention to detail and strong quality control measures.
Market Competition : The growing popularity of the Halal market has led to increased competition among businesses in the race for consumer attention. Businesses must differentiate their brands and products and capture market share effectively to stand out in a crowded market.
Cultural and local sensitivity : Understanding the cultural nuances and preferences of diverse Muslim communities is essential for successful market penetration. Businesses need to tailor their products, marketing messages, and branding strategies to suit local customs and values, especially in international markets.
The booming Halal market presents a lucrative opportunity for businesses willing to navigate the complexities and challenges of this rapidly evolving industry. By tapping into the growing demand for Halal products and services, businesses can successfully meet the needs and preferences of Muslim consumers around the world. However, this requires careful planning, innovation, and a deep understanding of cultural and regulatory factors. With the right approach and a commitment to quality and compliance, businesses can ride the wave of the Halal boom and thrive.
The development of Vietnam's Halal industry in recent times has recorded relatively positive changes. However, basically, Vietnam's participation in the Halal market is only in its early stages; the concept and market of Halal are still quite new in our country. As of September 2023, there are more than 1,000 small and medium enterprises in Vietnam, in addition to some large corporations (Vinamilk, Nestle Vietnam, Hapro, Trung Nguyen, etc.), exporting Halal-certified products. Vietnam's Halal products account for a small proportion of the overall export structure of goods to Muslim/Muslim-dominated markets and are mainly in raw and semi-processed form, with little added value. On February 14, 2023, the Prime Minister issued a Decision approving the Project "Strengthening international cooperation to build and develop Vietnam's Halal industry by 2030". This is an important achievement after 2 years of efforts and close coordination between the Ministry of Foreign Affairs and ministries, branches, localities, associations, and enterprises in developing the Project (with 3 consultations, many conferences, and seminars to serve the development of the Project). This can also be considered a very important turning point in the development process of Vietnam's Halal industry, for the first time providing overall national orientations in mobilizing international resources to develop Vietnam's Halal industry in a comprehensive, systematic, and professional manner. |
Source: https://baoquocte.vn/su-bung-no-cua-thi-truong-halal-co-hoi-va-thach-thuc-cho-doanh-nghiep-276578.html
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