Global halal economy to hit US$4.96 trillion by 2030, says Frost & Sullivan
07 Sep 2022
The buoyant market for the global halal economy is expected to reach US$4.96 trillion (RM22.34 trillion) by 2030, from US$2.3 trillion in 2020, according to research and consulting firm Frost & Sullivan.
In a report on Tuesday (Sept 6), the firm said that the halal economy is experiencing an upward trend, as demand for halal products from Muslims and non-Muslim nations increases.
It said the main factors driving the halal industry are favourable population demographics, government policies, and private-sector initiatives.
It said growing non-Muslim demand for halal food will be driven by its association with safe and healthy eating, while halal fashion and tourism should also find increasing acceptance among more conservative non-Muslim consumers.
Frost & Sullivan senior economist Neha Anna Thomas said with higher levels of halal trade and Islamic finance potentially accelerating infrastructure development, the halal economy is poised to become more integrated with global trade and supply chains.
“Further, governments are strengthening regulatory and policy support through national master plans and certification scope expansion, which will boost the halal industry’s growth,” she said.
Thomas added that transparency and traceability along the halal product value chain are crucial.
“Due to this, governments should encourage the adoption of advanced technologies, such as the blockchain and the Internet of Things, when developing halal economy master plans, while businesses can partner with tech start-ups,” she said.
Frost & Sullivan said that to tap into growth opportunities of the halal market:
- Global governments must seek to unify halal standards and accreditation processes to help reduce the number of certification requirements and promote halal commerce.
- Food manufacturers should collaborate with technology companies to improve traceability and transparency while increasing consumer trust.
- Global drug manufacturers and raw material suppliers should incorporate halal-certified products into their offerings, potentially through joint ventures, to tap into growing halal pharmaceutical demand from Islamic countries.
Source: The Edge Markets