Can Businesses Seize the Massive Transformative Potential of the Halal Economy?
The halal economy is not just a trend. It's a transformational journey that is gaining momentum, with this sector evolving from a niche space to a mainstream business. With the projected value to grow to $4.6-$5.0 trillion by 2030, it is a force to be reckoned with, driven not only by strong Muslim demographics, but also by the rising demand for halal products and services by non-Muslims. Many non-Muslim consumers are now seeking out halal products and services, recognizing them as a symbol of quality and ethical production. This will help push the halal economy into the mainstream and attract new investors and businesses.
Especially in the context of the ongoing global downturn, businesses could look to expand into halal products and services to expand revenue streams and stay ahead of the curve.
The next ten years will mark a remarkable shift in the global halal economy from its current niche position to a more dominant presence. Halal commodities and services will be embraced by both Organisation of the Islamic Corporation (OIC) nations and non-OIC nations, fostered by robust regulatory and policy initiatives, and catalysed by the digital transformation of the halal industry.
Neha Anna Thomas Growth Expert, Frost & Sullivan
The halal economy is here–Does your company have a unique strategy to approach this emerging sector?
Businesses must be aware of the challenges posed by variances in halal standards and accreditation, which can raise product costs, increasing the urgency to drive standardization and protect consumers from the risk of haram products. Supply chain transparency and visibility are critical in this aspect. Investing in disruptive technologies such as blockchain and Internet of Things (IoT) solutions can for instance enhance farm-to-fork traceability and build consumer trust.
What are your key strategies for driving growth in the halal-certified goods and services industry? Are you focusing on geographic expansion, mergers & acquisitions, product development, strategic partnering, or other approaches?
Why is halal economy evolving into a mainstream sector?
The halal economy is evolving from a niche sector to a mainstream sector driven by rising awareness and acceptance of halal products and services among Muslims and non-Muslims, opportunities to boost revenue generation with the addition of halal-certified portfolios, and with growing government policy support. Increasing regulatory and policy support for the halal economy is evidenced through initiatives such as Malaysia's recent launch of a 2030 halal industry master plan which will strengthen Malaysia’s Halal ecosystem while boosting sectoral competitiveness.
Another key factor contributing to the growth of the halal economy will be the rising affluence of the global Muslim population. As Muslim consumers become increasingly affluent and demand higher-quality halal products and services, businesses have recognized the potential of this growing sector and have responded by developing a wider range of halal offerings.
Have you taken any measures yet to expand your portfolio into halal-certified goods and services to meet the growing OIC and non-OIC demand?
The Rise of Halal Tourism
How HalalBooking Transformed the Halal Economy with Innovation and Digital Strategy?
HalalBooking, a travel and tourism company, successfully disrupted halal tourism by offering halal-friendly holiday packages with accommodations such as halal food, prayer facilities, and gender-segregated swimming pools. They also have a loyalty program that rewards customers with points for future bookings. HalalBooking has revolutionized the halal economy by providing Muslim travellers with a personalized travel experience that fulfils their religious and cultural needs.
Why Frost & Sullivan is the Partner of Choice for this global transformation?
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