Halal Goes Global

20
Chapter 3 – DRIVERS OF HALAL FOOD AND BEVERAGE MARKETS
Figure 7: PESTEL analysis
Political
• Growing awareness of halal as economic driver
• Political sensitivities of various kinds
• Recognition of importance of clear regulations
• Food security & sovereignty issues
• Growing involvement of Muslim majority countries
Social
Economic
• Emerging as new economic paradigm
• Above average growth
• Crosses political, cultural and ethnic boundaries
• More sectors coming into halal ecosystem
• Convergence with Islamic finance
• New investment platforms, e.g. crowdfunding
Technological
• Youthful demographic
• Expanding middle class
• Disposable income
• Halal as identity issue
• Changing consumer habits
Environmental
• Online connectivity
• Growing consumer power
• Job creation
• Entrepreneurial opportunities
• New educational field
• Data mining driving market confidence
• Online trading opportunities
• More sophisticated testing methods
• Increased market connectivity
• Growing consumer awareness and power
• Creating entrepreneurial opportunities
Legal
• Undeveloped agricultural opportunities
• Parallels with eco-ethical movements
• Opportunity to bring Islamic values to environmental
causes
• Regulatory frameworks in development
• Increasing halal-related legislation
• Proliferation of standards development
• Accreditation bodies appearing
• Regional mutual recognition
Many Muslim-majority countries are working on legal
frameworks that will define halal and its application in the
market. Many of these are likely to be more comprehensive
frameworks that are geared as much towards controlling
the halal integrity of imported products as demonstrating
that halal certification can play a role in opening new
export markets. These new regulations are ushering in
a new chapter in halal market development, and will be
instrumental in promoting greater general awareness of
halal, as well as strengthening the regulations for trade.
The new halal standard being developed by the European
Committee for Standardization (CEN) also puts halal into
the legal framework of the European Union and means it is
less likely that individual member states will create their own
national halal standards; they will simply use the European
standard.
However, there is also a noticeable move within Europe against
unstunned slaughter. Denmark recently passed legislation to
ban slaughter without stunning, affecting both kosher and halal
meat production. From a legal perspective, stunning continues
to be a gray area in both secular and Shariah Law, and its use
is still hotly debated from both sides of the argument.