The market for the global halal economy is expected to reach US $4.96 trillion by 2030, from $2.30 trillion in 2020, Frost & Sullivan an American marketing research company has found.
In a report released on Tuesday, the research and consulting firm said that the Halal economy is experiencing an upward trend, as demand for Halal products among Muslims, including those living in non-Muslim countries is increasing.
Halal refers to anything permissible which adheres to Islamic law.
The main factors driving the halal economy are favourable population demographics, government policies, and private-sector initiatives.
The growing demand for halal food among non-Muslims is driven by its association with safe and healthy eating, while halal fashion and tourism are finding increasing acceptance among non-Muslim consumers for a family-friendly experience.
Neha Anna Thomas, a senior economist at Frost & Sullivan said, “with higher levels of Halal trade and Islamic finance potentially accelerating infrastructure development, the Halal economy is poised to become more integrated with global trade and supply chains.”
“Further, governments are strengthening regulatory and policy support through national master plans and certification scope expansion, which will boost the Halal industry’s growth,” she added.
According to the report, the Russian-Ukraine war and higher oil prices boosted the Gulf Cooperation Council’s (GCC) Halal economic growth prospects. For Saudi Arabia, Frost and Sullivan forecasted 7.4 per cent GDP growth in May 2022, up from 4.8 per cent in January 2022.
The report states that if global governments want to tap into growth opportunities of the Halal market, they must seek to unify Halal standards and accreditation processes to help reduce the number of certification requirements and promote Halal commerce.
Collaborations between food manufacturers and technology companies are important to improve traceability and transparency while increasing consumer trust.
Thomas said that transparency and traceability along the Halal product value chain are crucial. “Due to this, governments should encourage the adoption of advanced technologies, such as the blockchain and the Internet of Things, when developing Halal economy master plans, while businesses can partner with tech start-ups,” she said.
Frost and Sullivan also suggested to global drug manufacturers and raw material suppliers to incorporate Halal-certified products into their offerings to tap into growing Halal pharmaceutical demand from Islamic countries.
Related
Rabia Shireen is a Staff Reporter at The Cognate.
