As per the 2022 State of the Global Islamic Economy Report, an estimated US$2 trillion was expended by the world’s 1.9 billion Muslims in 2021 across sectors like food, pharmaceuticals, cosmetics, fashion, travel, and media/recreation. These sectors are significantly influenced by the ethical consumption requirements inspired by the Islamic faith. This expenditure signifies an 8.9% year-on-year growth compared to 2020. According to Inkwood Research, the global halal food & beverage market is anticipated to project a CAGR of 5.73% during 2023-2032 and garner a revenue of $2079.93 billion by 2032.
Halal cuisine is currently experiencing a phase of creativity and innovation, transcending cultural boundaries. Fine-dining halal restaurants are witnessing a diverse clientele comprising both Muslim and non-Muslim guests. Moreover, in regions like Asia, governments are actively shaping the landscape of halal economic activities, with Indonesia leading the region.
Some of the latest developments in the global halal food & beverage market –
What’s buzzing in the Halal Food & Beverage Market in 2023?
- Leveraging the Halal Brazil Project
Brazilian food & beverage companies can apply for their first halal certification through the Halal Brazil Project. The project is an open call for companies inclined to get their plants halal certified and want to reap its benefits.
The Halal Brazil Project is a partnership between the Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the Arab-Brazilian Chamber of Commerce (ABCC) to promote and cultivate Brazil’s halal exports. The primary objective is to bridge the Brazilian companies to the Islamic market and raise the number of value-added goods and companies in this niche through commercial promotion and training.
The halal certification tender is open for –
- Companies supported by the Halal Brazil Project
- Companies with products fit for halal certification and the project’s target markets that include South Africa, Malaysia, Indonesia, and 22 Arab countries
- Companies operating in the food & beverage industry or the agribusiness
- Companies with exports for at least two years
The project has an investment of BRL 15.4 million (USD 3.2 million) and is set to function till 2025. It will focus on priority markets like Germany, France, Malaysia, Indonesia, South Africa, Egypt, UAE, and Saudi Arabia.
- Malaysia’s New Benchmark: Halal Certification Approval to Take Only 23 Working Days
It takes somewhere between nine months and two years to obtain halal certificates in Malaysia. Taking this into account, the Malaysia Halal Industry Development Council has announced substantial reforms to the renewal and application procedures for halal certificates. Starting next year, halal certification procedures will be simplified – shortening it to only 23 working days.
The implementation of the process will be overlooked in collaboration between the Halal Development Corporation Berhad (HDC) and the Department of Islamic Development Malaysia (Jakim). Historically, the micro, small, and medium enterprises (PMKS) faced difficulties in fulfilling the stringent conditions set by the Jakim Halal Certification Division. The conditions that could not be met revolved around the upgrading or modification of premises for production.
As part of the coordinating solutions, the new halal certification application process will be implemented through a ‘proof of concept’ (POC) initiative. This will encompass five hotels located in areas like Labuan, Putrajaya, and Kuala Lumpur.
States Deputy Prime Minister Zahid, “We will implement the POC within the next two months. After that, we will officially adopt the 23 working days as the new benchmark for halal certification issuance.” (Source)
Accordingly, Malaysia, alongside streamlining its halal certification processes, is seeking to elevate its presence on the global stage as a prominent halal product proponent.
- A Halal Milestone: Manila Doctors Hospital – The First Halal-Certified Hospital in the Philippines
Manila Doctors Hospital (MDH) has achieved a significant milestone as the inaugural healthcare facility in the Philippines to attain halal kitchen certification from the Islamic Da’wah Council of the Philippines (IDCP), a well-recognized halal accreditation and certifying body.
In a formal contract signing ceremony on October 4, 2023, MDH officially affirmed its dedication to upholding the standards and requirements established by the World Halal Council (WHC). The hospital has established an exclusive Halal Dietary Services unit, complete with a separate halal kitchen. This facility is responsible for producing and serving high-quality, safe, and nutritious halal meals to Muslim patients, physicians, and staff.
Pioneering the introduction of a Halal-certified kitchen in the Philippines, MDH meticulously oversees every aspect of food preparation. This includes sourcing Halal-certified ingredients, food production, meal service, as well as cleaning and sanitation. The hospital ensures strict segregation of these processes from the regular kitchen operations to maintain the integrity of its commitment to halal standards.
- Be Double Sure: Shukran Korea’s AI-Powered Halal Assurance Solution
Shukran Korea Inc, a Korean startup, is on a mission to bridge the gap between the Middle East and South Korea by introducing a groundbreaking solution. Their innovative platform provides Halal and allergenic safety indices for Korean cosmetics and food products, facilitating informed decision-making for consumers who seek products conforming to Halal standards.
At the core of Shukran Korea Inc’s offerings is the cutting-edge Halal Assurance Solution. This tool delivers comprehensive details about products, including names, ingredients, and functions and incorporates barcode scanning functionality. This enables consumers to efficiently determine the Halal/Haram status of a product while also evaluating its allergenic or harmful potential. The platform is thoughtfully designed to cater to regional preferences, ensuring a personalized user experience.
The AI engine driving this innovation has undergone meticulous training on an extensive dataset, encompassing 20,720 cosmetics ingredients, 830,000 food ingredients, 2,000 Halal-certified products, and the precise criteria for Halal assurance. This vast knowledge base ensures that consumers have access to precise and current information for making well-informed choices.
What Should Manufacturers Expect?
In the contemporary business landscape, the appeal of halal food has transcended its traditional audience within the Muslim community, resonating with non-Muslim consumers. Halal food is now synonymous with attributes such as hygiene, quality, and sanitation, fostering its adoption among non-Muslim consumers. This shift in consumer mindset creates noteworthy opportunities for suppliers in the market. Nevertheless, formidable challenges are present in the form of stringent government regulations, posing a considerable obstacle to the halal food & beverage market’s growth trajectory.
By Akhil Nair
Obtaining a Halal certification holds immense significance for food and beverage businesses in the market. It serves as a testament to the commitment of a business to providing products that comply with Islamic dietary laws.
The halal food and beverage market is adapting to modern trends by incorporating innovative flavors, diverse product offerings, and aligning with health-conscious choices. Manufacturers are increasingly focusing on transparency, clean labeling, and sustainable practices to meet the evolving demands of a diverse consumer base while maintaining adherence to halal principles.