Global Halal Market
The global Halal market value for trade in Halal foods is estimated at US$547 billion a year. This large market has created interest from food producing countries worldwide. In this respect, Malaysia has the edge in being recognized internationally as a progressive Muslim country, where it has the potential of becoming a major producer of Halal food products [[Malaysia 3rd Industrial Master Plan]]. To realize this potential, apart from the commitment and support by the Government, the food-based Halal industries are shown to be focusing their efforts in producing and exporting Halal food products.
The increasing awareness of Muslim consumers on their religious obligations is creating greater demand for halal food and other consumer goods. There are approximately 2 billion Muslims out of the 6.5 billion world population. Majority of the nations are in OIC member countries. The global Halal food market is on the threshold of major developments that hold the promise of rapid and sustained growth. With the Halal food market currently accounting for as much as 12% of global trade in agri-food products, major growth will generate growth opportunities throughout the agri-food industry. Many reports on the Halal market focus on meat, but products sold under the Halal label cover virtually every agri-food product plus non-food products such as cosmetics. For instance, a very wide range of products that labeling Halal in Malaysia is such as sauces, bottled water, tea, coffee and fruit drinks.
The trade in halal food is enormous with an estimated annual halal food value of US$347 billion (RM 1,317) globally. It is a lucrative market and huge opportunities for halal food business - domestic and international trade. Many companies are looking at halal concept as a new tool for marketing. Some facts of market trend in abroad in the past few years did showed that the development of global Halal food market is up-rising. For example, the Australian Halal meat sales rose by 70% between 1997 and 2002. Annual Australian Halal exports in 2003 were valued at A$ 3.7 billion for meat and A$ 1 billion for dairy produce. The Australian Government has committed A$ 100 million over 5 years to promote their Halal food export business. Besides, the New Zealand Lamb exports account for 40% of the world market and 95% of all New Zealand lamb exports are now Halal while non-Halal production is being phased out.
In addition, the European Supermarket giants Carrefour and Auchan are now aggressively pursuing the Halal food retailing, while in the meantime the Port of Rotterdam is currently creating a “Halal DistriPark” to serve 30 million Muslims in Europe. The availability of Halal food from fresh meat to value added/processed food is increasingly visible in many EU countries. From butcheries, small stores, supermarkets and hypermarkets are gradually sells Halal food products, although this typically started in the Muslim-majority areas. Besides, there were also butcheries and grocery stores for the Muslims in China.
Currently, the global Halal market has gained its attention from the trade merchant world. Many Halal Expos had been held around the world, for example in Malaysia, Singapore, Turkey, Dubai-UAE and Iran. E-commerce and online business portal had been proved to be one of the best e-business solutions to penetrate the emerging market. However, not much e-commerce portal either by government or private sector that focusing on the Halal market has being seen in the Halal trade market.
The dynamics driving forces of the global Halal food market includes:
