The Basic Knowledge about Halal

Halal (“حلالا”) refers to what is permissible in Islamic law. The term halal is particularly associated with Islamic dietary compliance, among others, emphasizing on how meat is processed and prepared, with the accordance that meets the high standard of Islamic hygiene.

Halal encompasses all aspects of life based on Islamic guidelines. It portrays trust, respect and ethics. In short, Halal is a way of life.

The overview of the Global Halal Ecosystem can be represented in the infographics below:


Global Halal Ecosystem


Halal Food Market Size

Source : State of the Global Islamic Economy Report 2018/19 | Page 31

With 1.8 billion Muslims, around one-quarter of the world’s population, there is substantial potential to produce halal foods and beverages (F&B).

The opportunity has been seized upon to differing degrees across the planet, by Muslim and non-Muslim companies alike. In fact, some of the most prominent halal food brands and producers are in non-Muslim countries, such as the USA, Great Britain and China, while OIC countries have also joined the fray to tap into local demand and to export.

The opportunity has been seized upon to differing degrees across the planet, by Muslim and non-Muslim companies alike. In fact, some of the most prominent halal food brands and producers are in non-Muslim countries, such as the USA, Great Britain and China, while OIC countries have also joined the fray to tap into local demand and to export.

While regulation of the industry is falling behind international best practice, a number of initiatives have been launched in OIC countries that should raise overall standards. Malaysia has launched an International Halal Authority Board (IHAB) to oversee and regulate certification bodies as well as prohibit profit-seeking behaviour, and Turkey has established the Halal Accreditation Authority.

Halal food is also becoming popular because it is perceived as being trustworthy, notably in China, which has been rocked by numerous food scandals in recent years. Despite China having a tiny Muslim population, the bulk of production is for domestic production. The country is, however, gearing up to be a major halal food exporter. In the provinces of Xinjiang,
Gansu, Xian and Lanzhou alone, there are some 5,000 halal food companies.

Yet while there have been mergers, acquisitions and IPOs in the segment, halal food still remains an unrealised opportunity. Muslim spend on food and beverage was valued at US$1.3 trillion in 2017, and forecast to reach US$1.9 trillion by 2023.


Halal Pharmaceuticals Market Size

Source : State of the Global Islamic Economy Report 2018/19 | Page 87

A holistic approach to personal health and healthcare is a core tenant of Islam, but Muslims have struggled to adopt a halal-centric approach to preventative as well as reactive medicine due to the lack of an all-encom

At the preventative stage, Saudi Arabia’s AJ Pharma has launched a polio vaccine that is animal-component free, and is to launch an inactivated polio vaccine in 2019. Such vaccines should help to counter refusals by Muslim and non-Muslim consumers that are concerned about the health risks of inoculations.

This has contributed to major healthcare challenges in much of the Muslim world, evidenced in the growing phenomena of inoculation refusals over concerns about the halal status of vaccines. Change is afoot however, with the halal pharmaceutical ecosystem taking major strides forward over the past year.

Also, at one end of the preventative spectrum is the growing range of halal nutraceuticals, vitamins and supplements on the market, while key players are focusing on formulations backed by science to enhance efficacy and consumer trust.

Knowing what halal pharmaceuticals to prescribe is a further necessary addition, with Malaysia’s Halal Industry Development Corporation (HDC) currently compiling the first halal pharmacopoeia, while JAKIM is to introduce halal certification for medical devices, including liquids for dialysis machines.

Muslim spend on pharmaceuticals was US$87 billion in 2017, and is forecast to reach US$131 billion by 2023.


Halal Cosmetics Market Size

Source : State of the Global Islamic Economy Report 2018/19 | Page 95

Muslims are taught that cleanliness and a good scent were extolled by the Prophet Muhammad (PBUH). The Prophet also taught Muslims to avoid ingredients that are non-religiously permissible: porcine, non-halal slaughtered animals.

While no regional or global halal cosmetics brand has yet to emerge, the segment is poised for significant growth, with Muslim spend on cosmetics currently worth US$61 billion in 2017, and forecast to reach US$90 billion by 2023.

But the sector, which is dominated by small and medium-sized enterprises, does face challenges, notably from multinationals with halal lines in Muslim-majority countries that have large marketing budgets and strong retail presence.
Halal cosmetics brands also face both challenges and opportunities from another growing personal care segment: natural, organic and plant-based cosmetics. Consumers around the world are increasingly concerned about the ingredients in the products they use, giving rise to a trend for natural and ethically sourced products that do not harm the user or the environment. It is a trend that is potentially perfectly aligned with halal cosmetics.
The risk is that natural personal care products could be easily halal certified as they do not contain haram ingredients, and as such present significant competition to halal-centric brands. This is evidenced in the strong sales of South Korean plant based cosmetics to OIC countries.
However, halal cosmetics brands could ride this trend by using natural, organic or plant-derived ingredients, and consequently appeal to a wider consumer base. Indeed, some of the more recent breakthrough halal personal care brands have garnered multiple certifications while also mirroring the mainstream in terms of product offerings.


Halal Travel Market Size

Source : State of the Global Islamic Economy Report 2018/19 | Page 55

Muslims across the planet want to vacation in environments that respect their beliefs and cater to their requirements. Such concerns range from provid ing halal food at restaurants and hotels, to more diverse offerings, such as accommodation that includes prayer rooms, and resorts that have segre gated as well as family-friendly facilities at swimming pools and beaches.
In line with the growth of other Islamic economy sectors, Muslims are also hoping for Islamic-themed entertainment, healthcare, shopping and Islamic financing options. OIC countries are increasingly catering to such requirements, with the GCC making a strong push for Muslim-friendly tourism, with a marked focus on family-friendly hotels and resorts.

Mainstream tourism concepts are also being adopted, such as time share holiday apartments in Dubai, and the utilisation of machine learning by Have halal, Will Travel launching a chatbot to provide customised recommendations to clients.

Muslim spend on travel was valued at US$177 billion in 2017, and is forecast to grow to US$274 billion by 2023.


Halal Media & Recreation Market Size

The aphorism ‘a rising tide lifts all boats’ is applicable to halal media. Developments around the world are collectively widening the availability of halal media content that can be accessed by Muslims and non-Muslims alike, whether on smart phones, on cinema screens or between the pages of a magazine.

With entertainment and infotainment, a major business, it is only natural that content is targeted at one-quarter of the world’s population. Furthermore, Muslims are increasingly demanding culturally and linguistically specific content. This is reflected in Arabic content in the Middle East and North Africa rising by 40 per cent between 2011 and 2014, while Western content has dropped by 55 per cent.

Content producers have stepped in to cater to this demand in the Arab world, especially the Gulf countries, while Saudi Arabia is laying the foundations to be a major player in the segment through government incentives. The overturning of the ban on cinemas in Saudi Arabia is expected to push Islamic-themed content for the big screen, with resultant crossovers to the small screen and online content.

In line with content increasingly being streamed online, the Muslim world’s answers to ‘Netflix’ for children was launched, called Ali Huda, offering thousands of cartoons and edutainment programs in English and Arabic.

Muslim spend on media and recreation was US$209 billion in 2017, and is forecast to reach US$288 billion by 2023.

Source : State of the Global Islamic Economy Report 2018/19 | Page 77