Halal Goes Global

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EXECUTIVE SUMMARY
For anyone with an interest in the phenomenon known as the global halal market, this publication is essential reading.
Interested parties might include policymakers within national governments and international organizations; senior executives
in national trade and investment support institutions; corporate decision-makers in related industries whether they be in
large multinationals or SMEs; entrepreneurs, incubators and innovators, researchers, academics and investment analysts.
Indeed, anyone concerned with international trade, emerging markets, changing spending habits, consumer preferences, or
any aspect of the Islamic economy will find that the development of this new market paradigm holds something of interest.
This is not intended to be a definitive description of what is or is not halal, or permissible; there are other publications that
perform that function. It is an assessment of the trade potential in the halal food market that provides insights into its size,
its dynamics and drivers, its regional variations, the complex nature of its integrated value chain and the evolving regulatory
frameworks that are being developed to structure and regulate this market.
Halal is an Arabic term meaning permissible or lawful. Its opposite is haram, prohibited or unlawful. For the purposes of this
report, halal refers to food and beverages that are permissible for use and consumption by Muslims. Broadly speaking, all
foods are generally permissible except for those derived from prohibited animals such as pigs, dogs, predators or carrion,
as well as food and beverages containing alcohol and other harmful or poisonous ingredients.
Halal – from niche to a global market
Over the past two decades, halal food has been transformed from an exclusive niche market for Muslim consumers into a
dynamic global market phenomenon that shows every indication of playing a significant role in global trade in the coming years.
Traditionally, halal was seen to refer only to meat and poultry, specifically with reference to the method of slaughter. More
recently, this has grown to include non-meat foods such as dairy, baked goods, snacks, confectionery, ready-made meals
and other processed food and beverage products. And as halal is a ‘farm-to-fork’ process with halal compliance needed all
the way through the supply chain, aspects such as warehousing, transportation and logistics all play a role in maintaining
and demonstrating halal integrity.
In terms of market research, trade data and analysis, and the preferences and spending habits of 1.6 billion consumers, the
halal market has for years been uncharted territory. In this respect, the halal marketplace is still a very young and continually
evolving commercial arena; it is, in effect, a new market paradigm that crosses geographic, cultural and even religious
boundaries.
The halal market is a complex and fragmented jigsaw puzzle whose defining parameters are still fluid and expanding.
Variables based on cultural assumptions, habits and preferences, different interpretations of the law and the global nature
of food product supply chains add to this complexity. To understand the growth and evolution of the halal market, it is useful
to focus on factors and forces that are evidently driving this market forward. From consumer awareness to technological
innovations, the halal market is continuously being influenced and driven to new levels of evolution.
Regulatory frameworks can benefit from cooperation
The regulatory frameworks in the halal sector are somewhat complex, as they vary from one region to another and from
one country to another. Muslim-majority countries take a different approach from Muslim-minority countries, and regional
frameworks, such as for the Association of Southeast Asian Nations (ASEAN) or the GCC, are also in the process of
development. Standards and frameworks for the 57 member states of the OIC are also being developed.
The entire landscape of regulation of the halal market globally is in a state of flux and evolution. A major challenge in
developing a regulatory framework for the halal market is to bring the halal F&B sectors up to the same levels of regulatory
compliance as exist for safety and quality in the mainstream food sectors.