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ASIF INTERNATIONAL SDN BHD, Malaysia OPPORTUNITIES IN THE GLOBAL
HALAL MARKETBy Abdul Kabur IbrahimPAK - ASEAN WORKSHOP ON HALAL
FOOD PRODUCTION11 12 March 2009, KarachiPakistan
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GLOBAL HALAL MARKETHALAL means what is permissible in Islam.
Halal Food is tayyib slaughtered according to the specific
parameters of Islamic law, good, wholesome, healthy, untainted
during the stages of processing, packaging, storage,
transportation, & cooking
The HALAL Market is fast becoming recognized as a vitally
important emerging market sector. It is a new market force that
should not be overlooked.
With a global consumer base of about 1.7 billion, the Halal
market is estimated to be worth trillions of US Dollars and ripe
for the picking, and thus it is time that companies with halal
products and services should act fast to reap the potential
returns
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GLOBAL HALAL MARKETThe reason for this vast thriving market goes
hand in hand with halal products being widely recognized for its
safety and quality assurance. This worldwide demand is not
restricted as consumers also consist of people from diverse races
and religious beliefs, thus providing a huge boost to the halal
industry
Players from every sector of the industry, from the huge
multinationals down to small enterprises are looking to capture
their share of this growing market. Nestle, TESCO, Colgate etc are
some examples
Currently, the Halal sector is low on available data and
research, and the companies that can best understand this emerging
market with its complex customer base, plus all the issues relating
to certification and standards are likely to be the most
successful..
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HALAL PRODUCTS
HALAL PRODUCTS
HALAL Products includes both Food & Non Food Items.
HALAL Food is not only Meat and Poultry but also other Food
Items such as: - Confectionery- Canned & Frozen Food- Dairy
Produce - Bakery Products- Organic Food- Herbal Products- Beverages
etc
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HALAL PRODUCTS
HALAL PRODUCTS CONTD
HALAL Products also includes Non-Food products such as: -
Cosmetics- Toiletries- Beauty products- Pharmaceuticals- Leather
products- Perfumes etc
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HALAL SERVICES
HALAL SERVICES
Besides merchandise, HALAL Services are also important
components of the HALAL market: - Islamic Banking - Securities
& Bonds- Travel & Tourism Supply Chain & Logistics
Education & Training - Food Services HALAL Logistics is
important to ensure that a HALAL product remains HALAL from its
origin to the consumer Farm to Fork
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SIZE OF THE GLOBAL HALAL MARKET
SIZE OF THE GLOBAL HALAL MARKET
The Global Food Market alone is estimated at USD 600 billion.
This amount is calculated based on the world Muslim population of
about 1.6 billion.
Although our market analysis is based on Muslim consumers, we
cannot overlook the non-Muslim (Cross over markets)
consumers/markets. The demand potentials in the non-Muslim
countries are even larger.
Again our statistics are based on Food only. If we include other
Halal products and services and also the potential non-Muslim
consumers, the market could be worth trillions of Dollars.
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MARKET OVERVIEW World Muslim Population
ContinentPop 2008 Muslim 2008 % of Muslims (Million)(Million)
Africa96746247.8West Asia22519988.3South Central
Asia1,68363937.9South East Asia586 22638.6East Asia1,557402.5Europe
735517N. America3326.82.2S.
America5773.10.42Oceania330.61.5_________________________________________________________________Total6,695
1,62824.3Islamic Source1,79126.7 Source:
www.islamicpopulation.com
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MARKET OVERVIEW Estimated Global HALAL FOOD Market Value Region
Muslim Pop Per capita foodHALAL Food 2008, Mils expenditure
ValueMarket p/a USD Mils USD
________________________________________________________________Africa462
250115,500West Asia 199 570113,430South Central Asia639
300191,700South East Asia226 35079,100E. Asia401757,000Europe (inc
Russia)511,25063,750N. America6.8 1,75011,900S.
America3.15001,550Oceania0.61,500900_________________________________________________________________Total1628
USD 586,830Source: www.islamicpopulation.com & Euromonitor
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MARKET OVERVIEW From a market perspective, the traditional major
target markets remain in Asia and the Middle East (West Asia).
However, there are influential developing Halal markets in the UK,
Europe and the USA with significant market size.
The developing Halal markets of Europe and the US play an
interesting role, because they are markets that also play defining
roles in other markets around the world
As the dynamics within the Muslim world change, and
globalisation trends continue to shape peoples tastes, habit and
spending patterns across the world, we are likely to see moves in
the developing Halal markets having increasingly influential roles
in the established markets of the Middle East and Asia.
Now let us look at the specific markets:
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SPECIFIC MARKETSAFRICAN MARKET
Northern Africa (MuslimPopulation)
Egypt 71 mAlgeria 33 mMorocco 31 mSudan 30 mOthers Tunisia &
Libya
Western Africa (MuslimPopulation)Nigeria 65 mNiger 14 mMali 13
m
Senegal 11 mIvory Coast 12 mGhana 7 mGuinea 8 mOthers Mauritania
& Togo
Central Africa (MuslimPopulation) 17 mCameroon, Chad &
DRC
Southern Africa (MuslimPopulation)South Africa 1 m
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SPECIFIC MARKETSAFRICAN MARKET CONTD
Northern Africa Northern African countries have more than 90 %
Muslims and are ready markets for HALAL products Need to create
more awareness on HALAL standards and certification. Currently no
HALAL standards or certification exist in these countries Good
prospects to export Halal products and services to Sudan, Egypt and
Libya
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SPECIFIC MARKETS
AFRICAN MARKET CONTD
Southern Africa
Although South Africa is a small market but is an important
market for HALAL products. It has four HALAL Certification bodies
with various standards Muslims in South Africa are very particular
on HALAL products and thus there is a ready market for Pakistani
products South Africa could also be a gateway to the other
Southern, Eastern and Central African countries. As such Pakistani
companies targeting the Sub-Sahara African countries should utilize
the South African networking.
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SPECIFIC MARKETS
AFRICAN MARKET CONTD
Rest of Africa
Although there is a huge Muslim population in Western and
Eastern Africa, the HALAL market is still not developed. HALAL
Standards and Certification are not available in this part of the
world Countries with good prospects for Pakistani exporters are
Senegal, Ghana, Guinea, Nigeria, Ethiopia, Kenya, Tanzania and
Mocambique
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SPECIFIC MARKETS
ASIAN MARKET - West Asia
(Muslim Population)Saudi Arabia 24 mTurkey 73 mYemen 21 mIraq 28
mSyria 17 mOthers UAE and Other GCC countries, Jordan, Lebanon
Market Review West Asia is a ready market for HALAL products and
services. Although there are no specific HALAL Standards in these
countries, all products imported or manufactured locally have to be
HALAL (whether certified or not).
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SPECIFIC MARKETS
ASIAN MARKET - West Asia Market Review CONTD Most of the
countries are open for imported products and as such there is
intense competition. In these countries the emphasis on HALAL is on
Meat products. If the mindset can be changed to include other food
and non-food items, then the market could be really huge. In the
case of Turkey, it is already promoting itself as the Halal gateway
to Europe and are coming with its own standards and
certification.
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SPECIFIC MARKETSASIAN MARKET South Central Asia
(Muslim Population)India 154 m (220 m)Bangladesh 127 mPakistan
158 mIran 69 mUzbekistan 23 mAfghanistan 30 mOthers Kazakhstan,
Kyrgyzstan, Sri Lanka, Tajikistan, Turkmenistan
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SPECIFIC MARKETS
ASIAN MARKET South Central Asia CONTD
Market Review South Central Asia is a massive untapped market.
Most are Muslim countries but without any HALAL standards or
certification Pakistani exporters should target this region
especially Iran and all the Central Asian countries
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SPECIFIC MARKETS
ASIAN MARKET East & ASEAN
China 39 m (130 m) (Muslim Population)ASEAN 226 m (Indonesia -
195 m, Malaysia - 15 m)
Market ReviewASEAN countries are one of the worlds leading
suppliers and also importers of HALAL certified products in the
world. Although these countries compete in the international front,
there has been substantial trading in HALAL products among them.
For example Indonesia is the biggest buyer of Malaysian HALAL food.
China is a huge and an untapped market.
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SPECIFIC MARKETSNORTH AMERICAN MARKET
A market of 6.8 million Muslims who are looking for HALAL
products. However HALAL products are not readily available in this
market. The following illustrates the potential for HALAL products
in the US market: The US Kosher market, with a Jewish population of
5 to 6 million, has been valued in excess of 100 billion USD
annually. There is a range of 86,000 certified kosher products on
the supermarket shelves.However, in Mintels recent survey in the US
shows that only 15% of the kosher product customers are Jewish. 55%
buy kosher because it is perceived to be healthier. 38% are
vegetarian, 24% want dairy-free. And 16% are Muslim!
This shows that Muslims consume more Kosher products than the
Jews
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SPECIFIC MARKETSWhy?
Because there are only 1,000 Halal certified products available,
and most are not available through the mainstream retail
outlets.
So for every Halal product on sale, there are 86 kosher products
to choose from! There are simply not enough Halal products on the
shelves!
US Muslims are spending$16 billion a yearon Kosher products
Wouldnt they prefer to buyHALAL products?
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SPECIFIC MARKETSEUROPEAN MARKET France 6 m (Muslim Population)UK
1.5 mGermany 3.1 mRussia 27 mBosnia 2.34 mOthers Ukraine, Albania,
Italy, Netherlands, Bulgaria
Market ReviewRelatively a small market but a serious market with
high purchasing power Good prospects for Pakistani Exporters in UK,
France and Germany Russia and Other markets need to create
awareness
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MARKET FEATURES Since everyone is noticing Halal now, the
competition for the Halal sector is getting intense. Halal is more
and more a complete range of product offering in supermarkets
chains worldwide, as well as in 5-star hotels and restaurants and
fast food chains, airline meals, school dinners, military and even
prison rations. We see this phenomena applying not only on food
items. Personal hygiene and healthcare products, toiletries and
cosmetics are all appearing as Halal options. Once Halal is
understood as a lifestyle choice, the range of option increases
exponentially.
So the question naturally arises, where to find Halal certified
products? Because most of the Muslim majority countries do not
consider Halal-certification necessary or have not done till now
they cannot provide Halal certified products to the international
markets.
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MARKET FEATURES Because with the movement of Halal products
around the world, the increase in awareness of Halal in general,
and in turn added value surrounding Halal, and of the holistic and
interdependence of the entire Halal value chain, we are seeing
entirely new sectors emerging, relating to Halal logistics,
security, auditing and industrial development.
With major investment in Halal production and manufacture at one
end of the chain, and major investment in the retail sector at the
other end, maintaining the integrity of the Halal chain at all
points in between is becoming increasingly important.
The Halal integrity in the handling, storage, warehousing, and
transportation by road, sea and air of Halal certified products,
and also dedicated Halal-certified zones are fast becoming a
reality.
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MARKET FEATURES The creation of controlled Halal only industrial
food parks, free zones, DistriParks will be part of the future of
this Halal industry. As the market demand continues to increase,
more links in the supply chain will be created.
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LIMITATIONS LIMITATIONS & CHALLENGES
Currently there is no single standard that is recognised
worldwide. There are also numerous Certification bodies worldwide,
of which their recognitions vary from country to country. The World
HALAL Council which monitors the various Certification bodies has
not been able to come up with a single standard for its members.
Lack of data on HALAL Trade - There is no proper classification of
HALAL products under the Customs code and as such data on actual
trade are difficult to obtain
Most Muslim countries do not impose Halal Certificate as a
compulsory requirement In Pakistan there is no recognised Halal
Certification body and as such its products may not be accepted in
some countries
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OPPORTUNITIES & RECOMMENDATIONSOPPORTUNITIES &
RECOMMENDATIONS There are ample opportunities for Pakistani
Companies/organisationsto develop its Halal Industry and to tap the
expanding Global HalalMarket. Pakistan should develop its own Halal
Standard (probably with the assistance of ASEAN countries) and a
Certification Body which should be recognised by the World Halal
Council and its members. There is a big potential for Pakistani
Companies to manufacture and export Halal Certified products to the
world market.
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OPPORTUNITIES & RECOMMENDATIONS- There are about 1.7 billion
Muslim consumers of HALAL products in the world. The number is
increasing rapidly. With increasing awareness, more and more
countries are requesting for HALAL certified products. The demand
from non-Muslims are also increasing. - More and more Supermarkets
and Hypermarkets are adding HALAL Shelves to attract ethnic Muslim
population in non-Muslim countries egs. TESCO in UK and CARREFOUR
& AUCHAN in France - Around 80 per cent of the Halal food
industry is in the hands of non-Muslims. The Brazilians have been
big halal producers for decades. Three-quarters of chickens
exported by France are halal. Being a Muslim country, Pakistan is
in a more advantaged position to tap this growing Halal market
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OPPORTUNITIES & RECOMMENDATIONSPakistan could promote itself
as the Halal Gateway to Central Asia and the Middle East. This
would attract investments into Pakistan in Halal products
manufacturing especially from non-Muslim countries which are eying
on these markets. By developing its infrastructure and facilities
such as Halal Parks and Logistics, Pakistan could be a Regional
Halal Hub in the South and Central Asian region. This would further
attract investments and increase in exports. There are also
opportunities to develop Halal Tourism in Pakistan Halal Tourism
Activities, Halal Airlines, Halal Restaurants and Halal Compliant
Hotels
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OPPORTUNITIES
Pakistan is also encouraged to develop itself as a centre for
Halal Research, Science and Technologies, which could give the
country more credibility in the International market. Huge
potential for Islamic Financial services, which is an ally of
Halal. Pakistan is already becoming an important player in Islamic
Finance.
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Thank You HALAL is on the move. It is being reborn into the age
of globalisation, and indeed, globalisation suits the nature and
quality of HALAL. HALAL is made to be global. HALAL is for
everyone.
THANK YOU