Halal Goes Global

12
Chapter 2 – THE HALAL SECTOR
Sugar, confectionery and cocoa
Global trade in these halal products reached US$ 93 billion
in 2014, an increase of 111% over the decade. Leading
exporters include Brazil (US$ 9.9 billion), Germany (US$
8.1 billion), Netherlands (US$ 6.5 billion), Côte d’Ivoire (US$
5.3 billion), Belgium (US$ 4.8 billion), United States (US$
4.3 billion), France (US$ 4.1 billion), Ghana (US$ 3 billion),
Thailand (US$ 3 billion) and Mexico (US$ 2.3 billion).
Major importing countries for these products in 2014 were
the United States (US$ 9 billion), Germany (US$ 6.7 billion),
Netherlands (US$ 4.9 billion), United Kingdom (US$ 4.7
billion), France (US$ 4.6 billion), Belgium (US$ 3.6 billion),
Italy (US$ 2.6 billion), China (US$ 2.6 billion), Canada (US$
2.6 billion) and Malaysia (US$ 2.4 billion).
Countries with above-average growth rates for these imports
over the past decade are China at 323% and Malaysia
at 215%.
Both Ghana and Thailand showed above-average growth
rates over the decade with increases of 245% and 236%,
respectively.
Figure 6: SWOT analysis
Strengths
• Increasing global awareness of potential of the halal
market by governments, corporations and financial
institutions
• Recognition of halal as genuine engine of economic
growth
• Continued strong growth across all halal market sectors
• Halal industry initiatives across MENA region strengthen
the market
• Appearance of reliable trade and research data
• Synergy between various sub-sectors, e.g. food, travel,
digital
• Young entrepreneurs and start-ups entering halal sectors
• More countries developing national halal campaigns
• Halal foods playing a more prominent role in global
sporting events, e.g. the Olympics
Weaknesses
• Lack of clear leadership to coordinate regional initiatives
• Confusion over differences in standards
• No viable accreditation scheme to regulate halal certification
bodies (HCBs)
• Conflicts of interest among HCBs
• Evident fraud and rumours undermine market integrity
• Lack of funding for start-ups and SMEs
• Insufficient awareness among financial institutions
• Regional competition hinders mutual recognition initiatives
• Negative reports of animal welfare issues
• Insufficient training and human resource development
programmes
• Halal as non-tariff barrier hinders trade
• Weakness among many Organisation of Islamic Cooperation
member states
• Unclear or opaque labelling issues
Opportunities
• Creation of a viable global regulatory framework
• Investment opportunities in niche food and personal care
markets
• Global promotional campaign to increase halal
awareness
• Marketing based on ‘tayyib’ and eco-ethical values
• Increase use of effective social media campaigns
• Acquisitions to gain market share or create global halal
brand
• Vertical integration to ensure halal compliant supply chain
• More focused scientific research on the benefits of halal
foods
• Accessing global markets via online platforms
• Providing accurate and well-researched market data
• Incubation of SMEs and start-ups
• Crowdfunding and other alternative investment platforms
Threats
• War, violence and social upheaval in the Middle East
• Acts of terrorism fuel Islamophobia in the West
• Opposition from vocal animal welfare groups, especially
against live animal exports and unstunned slaughter
• Non-Muslim consumer opposition to unlabelled halal
food
• Banning unstunned slaughter, e.g. in Denmark
• Scandals caused by poor management and operational
methods
• Fake halal logos on non-halal products
• Proliferation of online videos highlighting bad practices