Population growth is one of the drivers propelling the demand for halal products, says global market research company Euromonitor International. This and other trends are currently shaping the global halal markets, and companies are racing to benefit from a pool of untapped consumers, the firm adds.
In its latest webinar, “New Consumerism and the Global Halal Market”, Euromonitor explains that the Muslim population grew by 18% over the past 10 years compared to the global population growth of 11%, strengthening demand for halal food, drinks, beauty and fashion products, among others.
“Population changes, increasing disposable income and growing Internet penetration are some of the key factors driving growth of halal products demands,” says Euromonitor International’s senior analyst, Emil Fazira.
“Disposable income of countries with the top five biggest Muslim populations such as Indonesia, Pakistan, India, Nigeria and Iran have grown by 257% and Internet penetration has risen by 31% for these same markets.
“Young adults are the main users of social media and Internet. They become more interested in the latest trends [and] global events, and use multiple social media platforms. This makes new food and service experiences, fashion and cosmetic products more accessible to them,” Fazira says.
Within Asia, non-Muslim majority countries such as Singapore and the Philippines are major markets for halal packaged food and drinks, at US$1.4 billion and $7.5 billion respectively. This is partly due to the integration and acceptance of halal products in the general community, as well as strengthening halal infrastructure. Indonesia, on the other hand, is expected to show the largest sales gains in US dollars over the next five years, due to its significant market size and positive forecast growth.
Joanna Chan, research analyst at Euromonitor, concludes: “When identifying markets and industries, studying the market’s halal infrastructure to balance halal certification with consumer values is crucial. Choosing the right audience and catering to them is another issue that companies must keep in mind.”