Navigating The Halal Industry

Overview Of The Halal Industry

Halal products and services in the industry refer to goods and services that are produced and provided under Islamic law or Shariah. Halal certification ensures that these products and services meet the required standards of safety, hygiene, and quality. While Halal is a religious observance for Muslims, it has also gained acceptance among non-Muslim consumers due to its association with values such as economic and social justice, social responsibility, and animal welfare. The global Halal market is significant, with a large consumer base and a substantial market value. However, challenges in the Halal industry include low awareness, uncertainties about product ingredients, and misleading information on packaging.

The Halal Global Market

The global Islamic economy comprises seven sectors — Islamic finance, Halal food, modest fashion, media and recreation, Muslim-friendly travel, pharmaceutical, and cosmetics.

The Halal industry is a booming global market, and it’s expected to hit almost $4 trillion by 2028 as it expands at an 11.25% CAGR over the next eight years. In 2019 alone, Halal consumers spent a staggering US$1.17 trillion on Halal food — making it the second largest sector after Islamic finance.

General stores and food makers in numerous nations have begun catering to Halal customers by offering more Halal refreshment products. The Halal food market is projected to experience significant growth due to the rising demand from Muslim and non-Muslim consumers. This is because of its cleanliness-related benefits, such as liberation from debasements, alcohol, and blood. There is a massive opportunity for Halal food manufacturers to capitalize on this growing interest by developing new products marketed in Western-style supermarkets, including grocery stores and hypermarkets. In addition, organizations are now following Halal-based planning as it allows for both quality and taste levels, which gives an edge in commercial centers.

Recent years have seen a surge in global awareness of sustainability, ethical consumption, green growth, and digitization, enabling the Halal industry to flourish worldwide.

The Meaning Of Halal

The word “Halal” comes from Arabic which means “allowed” or “permissible” according to Islamic law. Therefore, every Muslim must ensure that whatever they consume comes from a Halal source—not just the ingredients but also the entire production and handling process from start to finish (Zakaria, 2008). The definition given by Jabatan Kemajuan Islam Malaysia (JAKIM) in Trade Description Order 2011 covers products and services encompassing all the business operations like packaging, marketing, manufacturing, logistics, supply, maintaining premises, slaughtering, and so on (JAKIM, 2015).

Drivers Of The Global Halal Industry

Increasing Muslim population

The Muslim population is experiencing significant growth, currently numbering 2.2 billion individuals, which accounts for nearly 28.7% of the world’s total population. This surge in numbers can be attributed to factors such as immigration and elevated birth rates in various communities. Consequently, there has been a rising demand for Halal products on a global scale.

Rising Demand for Certified Halal Products

Religious and ethical values also play a major role in driving the global Halal industry. As the demand for certified Halal products has grown, manufacturers have taken steps to ensure that their products meet the required standards. This has led to the emergence of many certification bodies and Halal product labels.

The Upsurge of Muslim-Friendly Tourism

The growth of Halal tourism is due to a combination of factors, including the increasing number of Muslim tourists, changing consumer preferences, and ethical considerations. Moreover, the increasing demand for luxury holidays among affluent Muslim travelers is driving up the opportunities for Halal-friendly hotels and resorts from the Middle East to Japan, Thailand, South Korea, and other countries and regions. These establishments offer special amenities and services tailored for Muslim travelers, such as Halal food options, push showers in toilets and prayer facilities.

Diversification Of the Global Halal Supply Chain

The global Halal industry also benefits from expanding the global Halal supply chain. Companies are now more capable of sourcing Halal-certified ingredients and materials from international markets, allowing them to provide consumers with a wider range of Halal finished products. In addition, the rise of digital e-commerce platforms has made it even easier for buyers to access products from anywhere in the world.

Rise of Transparency and Sustainability

Customers are becoming more aware of the environmental impact of their purchases. They are increasingly demanding ethically produced products with a minimal environmental footprint. As a result, businesses have been investing in transparent supply chains to ensure the traceability of their products, from farm to fork. This has enabled businesses to monitor their production process better and ensure the quality of their products.

Food Safety Concerns

Food safety concerns are further fueling the consumer demand for more transparency in the Halal food chain.

The Food Tech Within the Halal Industry

The Halal industry has undergone significant transformations due to the emergence of digital technology, with AI and automation radically altering various aspects. This shift has enabled companies to innovate faster, develop products more efficiently, and scale their businesses more quickly. This increased digitization is transforming the global Halal industry, with Food-tech startups tapping into this growing market.

The Future Of The Halal Industry

In the next few years, the global Halal industry will continue to evolve as it learns to meet the needs of consumers and businesses. Thus, there will be an increased focus on transparency and traceability within supply chains.

The Halal supply chain has already become more transparent in recent years through initiatives such as life cycle assessment (LCA). The LCA measures environmental impact throughout each production stage, from raw material extraction through processing and manufacturing into final products. Furthermore, the FSMA-204 rules of the FDA urge players in the food supply chain to use traceability to ensure food security. In addition, we see more efforts towards sustainability by ensuring that carbon footprints and animal health are maintained throughout the production process. More companies now recognize the potential of Halal certification as an international quality assurance standard.

Blockchain technology ensures the traceability of Halal products throughout the supply chain, meeting customer demands for transparency and authenticity. The Halal sector increasingly views blockchain, or distributed ledger technology (DLT), as a solution for enhancing food traceability and sustainability. It records transactions from farm origin to store shelves, allowing stakeholders to track product sources, document processing methods, and monitor ingredients. This system can significantly reduce risks of food fraud and contamination across the supply chain.

Our Innovative Halal Services

Halal Certificate Digitalization

Digitizing the Halal certification process streamlines and standardizes it, reducing time and labor while ensuring transparency and traceability. This technological transformation enhances authenticity verification, building trust and confidence among consumers, and creating a more efficient and reliable Halal market.

Halal Traceability

Our Platform leverages cutting-edge technology (Blockchain, AI, & IoT) to provide detailed traceability, verifying Halal integrity from sourcing to delivery. Enhance trust with consumers, optimize operations with real-time tracking, and benefit businesses by ensuring compliance, reducing costs, and facilitating access to global Halal markets.

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