Global Trends

This interview was first published in the State of the Global Islamic Economy 2019/20 report produced by DinarStandard and supported by the Dubai Islamic Economy Development Centre. The report can be downloaded from here

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The Islamic Economy is at the cusp of major growth and widespread recognition, having gained traction as Muslims assert their religiosity and traditional values. Awareness about the concept of Halal is on the rise, and companies are responding to these consumer needs, be it for products or services.

The total number of the Muslim population is 1.8 billion  worldwide as of 2015, accounting for nearly one-fourth of the global population. While this contributes to growing global demand for halal products, non-Muslim countries such as Japan and South Korea are also experiencing increased consumer demand for halal-certified products, spurred by the internationalisation of products and a greater number of Muslim visitors, and are thus looking to boost halal developments as they venture into the halal food & beverage industry.

According to the State of the Global Islamic Economy Report (SGIE 2017/18), global Muslim spend across lifestyle sectors was $2 trillion in 2016, while the Food and beverage leads Muslim spend by category, at $1.24 trillion, followed by clothing and apparel at $254 billion, travel at $169 billion, and spending on pharmaceuticals and cosmetics at $83 billion and $57.4 billion respectively.

As Halal food is the largest and most diverse sector of the Islamic Economy, new entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, ready-made meals, snacks and children’s food.

Halal Pharmaceuticals are equally gaining traction, especially biologics and nutraceuticals, while Halal-certified vaccines for dengue fever, polio and Meningococcal meningitis (for Hajj) are soon to be launched worldwide.

Halal Travel, hospitality and is getting its moment in the sun. The number of Muslims travelling is at an all-time high, and there is a corresponding demand for Muslim-Friendly Travel, be it Halal hotels and beach resorts, to Halal dining options and Halal airlines. Halal hotel chains are also emerging and family-friendly attractions are being developed in the GCC. Along with a plethora of new online agencies catering to Muslim tourists, the Muslim equivalents of Airbnb have emerged.

Muslims spend on travel was $169 billion in 2016, and is forecast to reach $283 billion by 2022.

For more details, see the State of the Global Islamic Economy Report(SGIE 2017/18).

The halal industry is one of the major and most important industries and the fastest growing global businesses across the world. Muslims which are 1.8 billion (24.1%) of the global population in 2015 are looking for halal food is a religious doctrine that must be fulfilled. The number of Muslims is expected to increase by 70% – from to nearly 3 billion in 2060. However, Halal industry is attracting both Muslims and non-Muslims with wholesome, hygienic and contamination-free principles of food production.

Over the past two decades, Halal products have been transformed from an exclusive niche market into a dynamic global market phenomenon. In recent years, halal expanded from consideration of the ingredients in food products to other sectors like cosmetics, pharmaceuticals, travel, and service.

According to the State of the Islamic Economy (SGIE 2017/18), global spend across lifestyle sectors was $2 trillion in 2016, where Food and beverage leads spend by category, at $1.24 trillion and are expected to exceed  $3 trillion in the coming few years.

The Halal market does not merely cover food and beverage but it extends well into pharmaceuticals and health products, cosmetics and other consumer goods, food services, finance, logistics, and even tourism.

International HCB’s

The Jabatan Kemajuan Islam Malaysia (JAKIM), Department of Islamic Development Malaysia report on internationally recognized Halal Certifying bodies. Under South African Halal certification, the Muslim Judicial Council is recognized.

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