The global halal economy is evolving rapidly, driven by a combination of demographic, cultural, and economic factors. Valued at $7.2 trillion in 2020, the halal market is projected to surpass $10 trillion by 2025. This remarkable growth stems from the increasing Muslim population, rising global demand for halal-certified products, and a growing appreciation for ethical and hygienic standards among non-Muslims. At the heart of this revolution is the World Halal Summit, an annual event hosted in Istanbul, Türkiye. With its focus on bringing together stakeholders from across the halal industry, the summit plays a pivotal role in shaping the future of this booming market.
The World Halal Summit 2024
The 10th edition of the World Halal Summit and its concurrent event, the Halal Expo, marked a decade of transformative impact on the halal economy. This year’s summit attracted over 40,000 participants from 110 countries, including government officials, business leaders, and entrepreneurs.
Highlights included:
- Over 500 exhibitors showcasing a wide range of halal-certified products.
- The introduction of new zones such as the Natural Organic Vegan Zone and the Africa Special Area, highlighting the diversity and adaptability of the halal market.
- Nearly 1,000 business-to-business (B2B) meetings, fostering collaborations and trade agreements across regions.
This year’s summit underscored the role of global halal economy as a bridge between cultural traditions and modern consumer needs.
The Global Halal Economy
The halal economy encompasses a wide array of sectors, each contributing to its rapid growth. Below is a closer look at some of the key industries within this economy:
Halal food remains the cornerstone of the halal economy, accounting for a significant portion of its market value. According to recent reports, the global halal food market reached $2.5 trillion in 2023 and is expected to exceed $5.8 trillion by 2032, with a CAGR of 10%.
Key trends include:
- Plant-Based Halal Products: The rise of veganism and plant-based diets has led to the development of halal-certified vegan products.
- Convenience Foods: Ready-to-eat meals and snacks tailored for Muslim consumers are gaining popularity, particularly among urban populations.
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Halal Pharmaceuticals and Healthcare
The halal pharmaceutical sector is experiencing significant growth, with countries like Malaysia, Indonesia, and Saudi Arabia leading innovation. Products such as halal vaccines, medications, and supplements are gaining traction due to their ethical and hygienic standards.
Valued at $313 billion in 2023, the modest fashion industry continues to grow, driven by demand from both Muslim and non-Muslim consumers. Designers are increasingly incorporating cultural elements into their collections, making modest fashion more mainstream.
Halal tourism is a rapidly expanding sector, with destinations like Türkiye, Malaysia, and the UAE tailoring their offerings to cater to Muslim travelers. Key features include halal-certified dining options, prayer facilities, and family-friendly environments.
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Halal CosmeticsHalal-certified cosmetics are free from alcohol, animal-derived ingredients, and harmful chemicals. This sector appeals to health-conscious consumers globally, contributing to its rapid growth.
Türkiye’s Role as a Global Halal Hub
Türkiye has emerged as a strategic hub for the halal economy, leveraging its unique geographic location and robust infrastructure. The country’s commitment to halal certification and accreditation has bolstered its reputation as a trusted supplier of halal goods and services.
- Private Label Sector: Türkiye leads in private-label production, with nearly 30% of its producers offering services in this field. The private-label zone at the summit showcased Türkiye’s capacity to meet international demand.
- Expansion Plans: Türkiye plans to host standalone events for specialized halal sectors, further enhancing its role as a global leader.
Türkiye’s halal exports have seen consistent growth, particularly in food and beverages, textiles, and cosmetics. By investing in innovation and promoting international collaborations, Türkiye aims to capture a larger share of the $7 trillion halal market.
Non-Muslim Interest in Halal Products
While halal products are traditionally associated with Muslim consumers, they are increasingly attracting non-Muslims due to their ethical and hygienic standards. This trend is particularly evident in sectors like food, cosmetics, and pharmaceuticals.
Vegan Products
The introduction of the Natural Organic Vegan Zone at the World Halal Summit highlights the growing demand for halal-certified vegan and organic products. These offerings appeal to health-conscious consumers seeking reliable and ethically sourced goods.
In markets like Europe and North America, halal-certified products are seen as synonymous with quality and reliability. This perception is driving their adoption beyond the Muslim community.
Investment in the Halal Economy
The halal economy is attracting significant investment, with Islamic economy-relevant companies receiving $25.9 billion in 2022/23, a 128% year-on-year increase. This influx of capital is driving innovation and expansion across various sectors.
- Malaysia: A leader in halal certification, Malaysia continues to attract international investors through its comprehensive halal ecosystem.
- Middle East: Countries like Saudi Arabia and the UAE are investing heavily in halal startups and SMEs, fostering growth and innovation.
Africa and Central Asia are emerging as key markets for halal products, driven by rising demand and government support for halal certification initiatives.
The halal economy faces challenges, particularly in standardizing certification processes across regions. The lack of a unified global standard often creates inefficiencies, hindering trade and consumer confidence.
Organizations like SMIIC are working to harmonize halal certification standards, facilitating smoother trade and enhancing consumer trust.
Blockchain technology is being explored to improve transparency and traceability in halal supply chains. This innovation could revolutionize the industry, ensuring compliance and boosting consumer confidence.
Future Trends
The halal economy is poised for continued growth, driven by several key trends:
1. Youth-Driven Demand
With 60% of the Muslim population under 30, the halal economy is increasingly shaped by younger, tech-savvy consumers. Social media and e-commerce platforms are becoming essential channels for reaching this demographic.
2. Digitalization
The rise of digital platforms is transforming the halal economy, enabling businesses to connect with consumers more effectively. Online marketplaces for halal products are growing rapidly, offering convenience and variety.
3. Sustainability
As sustainability becomes a global priority, halal producers are adopting eco-friendly practices to align with consumer values. This shift is expected to further enhance the appeal of halal products among diverse audiences.
4. Global Integration
Efforts to integrate halal certification into international trade agreements are creating new opportunities for businesses. This integration is expected to drive growth and innovation in the halal economy.
Türkiye’s Vision
Türkiye’s leadership in hosting the World Halal Summit reflects its commitment to fostering a thriving halal economy. By investing in infrastructure, promoting innovation, and facilitating international partnerships, Türkiye is positioning itself as a global hub for halal trade.
- Certification Programs: Türkiye aims to enhance its halal certification framework, making it more accessible and reliable.
- International Collaborations: By partnering with other countries, Türkiye seeks to drive growth and innovation in the halal economy
The global halal economy is not just a market; it is a movement that embodies ethical values, quality standards, and cultural inclusivity. The World Halal Summit 2024 showcased the immense potential of this economy, emphasizing its role as a driver of inclusive growth and international trade.
With projections of reaching $10 trillion by 2025, the halal economy presents endless opportunities for businesses, investors, and governments. By addressing challenges and embracing innovation, the halal market is set to achieve unprecedented milestones, catering to the diverse needs of consumers worldwide.
