Market

The Halal market in Asia is booming

10:29 SGT June 12, 2017
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The presence of a global hub will result in a smoother production chain, where the higher processes required such as farming for Halal products will be transparent and standardised.

With the Halal food market continuing to grow worldwide, consumers are now finding it easier to purchase Halal-certified F&B products from various global sources.

In order for food and drinks to be certified Halal, they must adhere to strict Islamic regulations and practices. Strictly forbidden are pork and pork-by products; animals improperly slaughtered; animals that were dead prior to slaughtering; blood and blood by-products; and alcoholic drinks.
According to the US Halal Association (USHA), the total global Muslim population stands at 1.6 billion, or around 25% of the world’s population today. This is expected to double to 50% of the world population by 2050 if current growth rate continues.

Moreover, the global Shariah-compliant product market generates more than US$2 trillion annually. USHA estimates the global Halal food market itself to be about US$632 billion, or 16% of the global food industry.

Mohamed Hazli Mohamed Hussain, CEO of Malaysia-based Dagang Halal, which operates an online trading portal for Halal-certified food suppliers, tells FoodbizAsia (FBA) that according to its research, it is estimated that global Muslim spending on food and beverages has increased by 10.8%, chalking up to US$1,292 billion in 2013. This number is expected to increase to US$2,537 billion by 2019. Moreover, the potential core for Halal food market, which stood at 17.7% of the global expenditure in 2013, is estimated to rise to 21.2% by 2019.

He adds: “Within the Asia-Pacific region, many countries often ensure that their products are Halal-certified. When it comes to exporting to other countries in different regions, Halal certification acts as an added value to their products.”

Based on statistics, Indonesia and Malaysia are leading the way as majority of their products are Halal-certified in order to cater to the local Muslim communities, says Mohamed Hazli.

However, it does not mean that other countries are trailing behind. Majority of the [F&B manufacturing] companies from Singapore, Brunei, Taiwan and Thailand are doubling their efforts in promoting their Halal-certified products. There are also an increasing number of manufacturers from Japan and South Korea who are looking towards getting their products certified as Halal. This is because the Halal certificate gives an assurance to the consumers, both from Muslim and non-Muslim countries.

In terms of marketing strategies, they vary according to individual companies. There are some that prefer to exhibit their products at trade shows, while others rely on partnerships with distributors and agents, Mohamed Hazli says.

Due to the increasing demand for Halal-certified food products, more countries are also looking to tap the Halal market. “Based on our research, Japan is welcoming more Halal products and is educating their local manufacturers to get the Halal certification for their products,” explains Mohamed Hazli.

“Other than for the obvious reason to export their products to Muslim countries in South-east Asia and the Middle East, Japan focuses on the Halal travel industry as there are many Muslim tourists visiting the country annually — and with the upcoming Olympic 2020, the number of Muslim visitors is expected to reach one million,” he adds.

Large Japanese food companies such as Ajinomoto, Asahi Beverage, Kewpie and Umakane are all expanding their product range with Halal products. Aeon Japan is also growing its Halal corner, serving customers with more Halal products all around Japan, according to DagangHalal’s research.

In order for buyers to have access to more producers of Halal food products, this month’s regional trade show, Food&HotelAsia (FHA 2016), has partnered with DagangHalal to stage Halal Supermarket, which showcases exhibits from Halal food suppliers. This is the first time FHA is showcasing such exhibits at the biannual show held in Singapore.

At FHA 2016’s Halal Supermarket, trade visitors would be able to source for Halal-certified ingredients and supplies; and businesses interested in offering Halal products can also find out more about Halal certification.

Clear guidelines ease

Halal certification process While the presence of Halal-certified food sources are increasing both in the physical (stores and exhibits) and cyber space, the most crucial element needed for the global Halal market to thrive is certification.

According to market research provider Euromonitor International, certification plays an important role in ensuring compliance to Islamic regulations and in assuring consumers of the reliability of Halal products. The enforcement of Islamic jurisprudence providing businesses with clear guidelines and support greatly eases the process of Halal certification, says Emil Fazira Kamari, research analyst, Euromonitor International Singapore.
Emil Fazira adds that stable infrastructure and standardised certifying processes also boost the country’s recognition and reliability in the global Halal network.

DagangHalal’s Mohamed Haizal says in order to ensure that the trading marketplace offers only Halal-certified food products, it has introduced a Halal Verified Engine (HVE) and Halal Trade Manager.

Halal Trade Manager is a trading management tool that boosts your Halal Business to Online Marketplace which provides more than 26 features to assist you from the leads to customer conversions,” says Mohamed Haizal. “It creates business opportunities and link potential buyers and sellers in a continuous profit cycle, using a reliable, tried and tested, international business contact-point platform.

The HVE solution, on the other hand, is an interactive software and mobile application that identifies authentic Halal-certified products and Halal food premises across the globe. “The company’s HVE database is expected to have 30 million users with 70 global Halal certification bodies across 50 countries with more than 200,000 Halal suppliers in the next few years,” Mohamed Haizal says.

According to Euromonitor, some examples of Halal certifying bodies are the Islamic Food and Nutrition Council of America (IFANCA), the Japan Halal Association (JHA), the Russian Islamic Research and Information Center in Halal Industry (RIRIC), the South African National Halal Authority (SANHA) and the Halal Food Council of Europe (HFCE).

The country-specific laws and certifying bodies, however, pose a challenge
to multinational companies (MNC) that wish to expand into the niche Muslim consumer base. With different certifying bodies and processes across various countries, MNCs have to comply with different sets of rules, and in some countries, the guidelines are still unclear.

The e-Coaching app will increase the visibility and productivity of CCAI’s sales force across Indonesia.

This naturally calls for a global Halal certification. The presence of a global hub will result in a smoother production chain, where the higher processes required such as farming for Halal products will be transparent and standardised.

This naturally calls for a global Halal certification. The presence of a global hub will result in a smoother production chain, where the higher processes required such as farming for Halal products will be transparent and standardised.