Asia Middle East Dialogue

Halal Food Feeding the Global Appetite

4/7/06

KasehDia
Efforts to develop Halal include:

The Halal Journal Magazine Halal Journal Awards The Halal Journal TV The Halal Journal Workshop Series The Halal Journal Executive Series HalalJournal.com World Halal Forum KasehDia Consultancy Halal Food Guides Indonesian - Malaysian - Thailand - Growth Triangle

What is the Size of the Halal Opportunity

As the demand for Halal food is on the increase in parallel with the growth of Muslim populations, and the increases of the educated Muslim middle class

580 USD Billion annually (food only) Multiplier effect 2 million Muslims in the UK and 6 million consumers of Halal Food

Quick facts

Singapore Fast food chain increased sale by 25% after going Halal (the Muslim population is less than 15% percent) 40% of customers some supermarkets in the UK supermarkets are Muslims Muslims eat more meat as a percentage of their diet (UK)

Demographic indicators
Population Growth of Muslim populations are an interesting prospect for Halal Food producers

Muslim populations are growing at a faster rate than nonMuslim Berlin is the second largest Turkish city after Istanbul Some areas of London and UK will have a Muslim majority under 20 years France has a sizeable and growing Muslim population Muslim populations in India and China are growing

Kosher Halal divide

Most remarkable figures are those of Muslim consumers of Kosher products in the USA. 16% Muslim compared to 15% Jewish. Why?

1000 Halal Products in USA 86,000 Kosher products There are more Muslim consumers of Kosher products in the US than Jewish Consumers The Kosher market in the USA is worth USD 150 Billion Muslims Consume USD 25 billion worth of Kosher products annually It would take 7 years of doubling out put of Halal products just to catch up

Which Countries are benefiting the most from this growth?

By in large the leading countries can be described as : Western, Non Muslim,Industrialized

Australia USA Canada UK and EU Brazil India

Which companies have recognized the opportunity

By in large those that have first mover advantage are MNCs

Nestle McDonalds KFC TESCO Aussie Beef New Zealand Lamb

What gives them the advantage

What has given both countries and companies the advantage, is what has traditionally be their advantage

Quality Food Production Standards Branding and Marketing Access to capital Control of Distribution and supply chain networks

What other countries are now moving into position

Countries that will succeed in penetrating the Global Halal Market will be those that pay attention to the details of, standards, branding and marketing. Collaborate with others.

Malaysia Thailand Singapore Turkey UAE

Food and National Security

Food is becoming more important in international relations

Trade issues OIC trade Trade barriers for Food Halal used as a trade barrier Halal in FTAs

Opportunities in related industries

Both companies and countries should look at areas of the market that they can penetrate by adding value

Halal Auditing and Certification Lab testing Logistics Travel and Hospitality industry Human Resource Development R&D

Issues in Halal
While the market is huge it is still young and needs to be matured

Internationally recognized Standards platform Approach to Quality Lack of Human Resources Access to Capital Intra OIC trade barriers Lack of on going research

Proposal - Industry Development

Especially for developing nations should look towards, Thailand and Malaysia models for the development of Halal as a way to spur growth in the manufacturing and agriculture sectors

Industrial Capacity building Halal Dedicated Industrial parks Standards that include HACCP, GMP, GHP, and Halal

Proposal - Manufacturing
Large supermarkets chains like TESCO want to stock 40% of their stores with own label products. They are currently looking for Manufactures that can meet the standards
Increased collaboration between Middle Eastern Investors with Asian based Halal manufactures to take advantage of this current opportunity