1 / 78

What is Halal?

daktari
Download Presentation

What is Halal?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ‘POWER OF HALAL BRANDING’by Asad SajjadSecretary General / CEOHALAL DEVELOPMENT COUNCILatLahoreInternational Halal Conference & Expo . August 9, 2010www.halalrc.orgData in this presentation is with the courtesy of IHI Alliance Malaysia, Kaseh Dia Consulting Malaysia, Halal Industry Development Corporation Malaysia, Asif International Malaysia, Islamic population.com and TIME Magazine.

  2. What is Halal? • In today’s world, it has become very important for Muslims to determine whether the products they use are Halal / permissible in Islam or not. • This problem of determination is not only limited to food and beverages but also to other non-food products and services.

  3. Awareness of the Halal Concept • Halal is an Islamic value, and has a direct impact on how products are produced, processed, distributed, stored, sold and consumed. • The awareness of how big the global Halal market is & what product sectors it is covering, is very low in Pakistan and most of us believe that Halal is only about meat.

  4. Halal Products Halal Products include both Food & Non-Food Items. Halal Food includes products such as: - Meat & Poultry - Confectionery - Dairy Products - Canned & Frozen Food - Bakery Products - Organic Food - Herbal Products - Beverages etc Halal Non-Food include products such as: - Cosmetics - Toiletries - Perfumes - Beauty products - Pharmaceuticals - Nutraceuticals - Leather products - Animal & Poultry Feed… etc

  5. Halal Services HALAL Services are also important components of the global Halal market, including: - Islamic Banking, Securities & Bonds - Islamic Travel & Tourism - Halal Processing, Packaging, the complete Supply Chain - Halal Food Services (catering / hotels, restaurants etc) - Education & Training - HALAL Logistics: This is important to ensure that a HALAL product remains HALAL from its origin to the consumers – from the Farm to the Fork..

  6. Halal Demand on the Rise • The present Muslim population is estimated to be 1.73 (or .79) billion. Growing at a rate of 2.9 % per year, it is projected to be 1.85 billion by 2011. • With this growth rate, by 2025, 30% of the world's total populationwill be Muslim. • The demand for Halal products and services will continue to rise with this increase in population.

  7. Global Halal Market • As per the latest research by World Halal Forum and quoted in TIME Magazine (May 2009), the total size of Global Halal food market is worth about $632 billion. • This is based on the world Muslim population of about approx 1.73 billion. However, if we also include the non-Muslim consumers, the total figure will be much higher. • Experts believe the size of the total Global Halal market including Halal food, consumer products, cosmetics, pharmaceutical, logistics and other Halal related services ranges between US$ 1.2 to US$ 2 trillion per annum.

  8. Time Magazine (May 2009)

  9. Biggest Exporters • In the west , Brazil, USA, France, Australia & New Zealand are the largest exporters of Halal products, whereas in the East, Thailand is the biggest exporter of Halal Products. Followed by Philippines, Malaysia, Indonesia, Singapore and India. • Brazil exports 1 million frozen Halal chickens and 300,000 MT of Halal beef products annually. • France exports 750,000 MT of Halal frozen chickens annually.. • United States is the third largest beef exporter in the world and more than 80 percent of its frozen beef is Halal. • New Zealandis the fourth largest beef exporter in the world & about 40 percent of its beef products exports are Halal.

  10. Biggest Markets • In Europe, the market size of Halal Foods is estimated to be$66 billion.  France having the largest share of approx $17 billion • In United Kingdom, only the Halal meat sale is worth over $600 millionannually. • The American Muslimsspend around $13 billion on Halal food products annually. • The GCC’sHalal food imports is worth approx $44 billion. • Annual Halal Food Trade in India is worth over $21 billion. • Indonesia’sannual Halal Food expenditure is  over $70 billion • Other Halal product importers include Saudi Arabia, Egypt, Iran, GCC, Africa, and other Muslim countries.

  11. Global Players • The Halal products are recognized as Good Quality & Healthy products so a big number of non-Muslims consumers also buy Halal products. • Players from every sector incl. the huge multinationals are trying to capture a share of the growing Halal market. • Famous international brands such as Nestle, Colgate, Subway, KFC, McDonalds, Pizza Hut and major hypermarkets in the world such as Carrefour and Groupe Casino of France, Tesco, Asda and Sainsbury of UK are some examples. • Latest addition is Walmart is USA who started sourcing Halal products for Muslim customers.

  12. Power of Halal Logo A survey done on consumer buying preferences in South East Asia showed that 31 % consumers look for Country of Origin, a 32.8 % prefer the price point, 69.6 % go for the brand name and 83.6 % consumers, the highest percentage, prefer buying products carrying the Halal Logo. The Halal logo is of maximum importance to the consumers.

  13. The Halal Standard • The Halal products are recognized for their quality. Halal Brand is comprised of 3 main standards: 1) Free from Pig or other Haram (products / by-products). 2) Free from Alcohol. 3) Good for human consumption / human use. • There are more than 200 Halal certification agencies present in around 25 countries including Malaysia, Indonesia and also in most non-Muslim countries including Thailand, Philippines, Japan, Taiwan, China, Bosnia, Switzerland, France, Germany, Netherlands, Austria, UK, Australia, New Zealand, Africa, Brazil and United States.

  14. Where to find Halal Customers? • No doubt that Middle East is the big buyer of Halal meat BUT Muslims living outside the sub continent and the Middle East are the most potential customers for Halal products and services. • They live in countries of non Muslim majority, and are very conscious of their religious belief and take care of what they eat and use. Halal Certified is very important for them. • Food or Non-Food, they want to buy when they see the Halal Certifiedstamp.. They want the Halal Brand • Quick look at some of thespecific Halal Target markets:

  15. Halal Target MarketNorth, East & South Africa North Africa: More then 181 million Muslimsincluding Egypt 71m, Algeria 33m, Morocco 31m, Sudan 30m, Tunisia 10m & Libya 6m. East Africa: More then 92 million Muslims including Ethiopia 37m, Tanzania 19m, Somalia 9m, Kenya 8m, Uganda 4.5m, Mozambique 4m, Malawi 2.5m, Eritrea 2m, Zambia 1.8m, Madagascar 1.2m and other countries. Market Overview: Growing awareness of HALAL with a major Muslims population in this region creating good prospects for companies to export Halal products in these countries. South Africa: Only 1.2 millionMuslims but important market as Muslims are very particular on HALAL products and thus there is a ready market for Halal products. South Africa also serve as a gateway for the other Sub SaharaAfrican countries.

  16. Halal Target MarketWest & Central Africa + Europe West Africa: More then 150 million Muslims including Nigeria 65m, Niger 14m, Mali 13m, Ivory Coast 12m,Senegal 11m, Guinea 8m, Ghana 7m, Burkina Faso 7m, Mauritania 3m, Sierra Lione 3m, plus other countries including Togo, Liberia, Guinea Bissau, Gambia, Cape Verde and Benin. Central Africa : 17 million Muslims including Congo 6m, Chad 5m, Cameroon 3m Market Overview: Huge Muslim population with a ready customer base in this region creating good prospects for Halal suppliers. EUROPE: More then 50 million Muslimsincluding Russia 27m, France 6m, Germany 3m, Bosnia 2.3m Kosovo 2m, Albania 2m, UK 1.5m, Italy 1.4m plus other countries including Ukraine, Italy, Spain, Netherlands, Portugal, Greece, Norway, Sweden Bulgaria and other countries. Market Overview: Its relatively small but a serious market for Halal suppliers due to its high purchasing power and clusters of Muslim population in smaller areas like France with 6 million Muslims, Germany with 3 million & Russia with 27 million Muslims.

  17. Halal Target MarketWest Asia West Asia : More that 200 million Muslims including Saudi Arabia 24m, Turkey 73 m, Yemen 21m, Iraq 28m, Syria 17m, Azerbaijan 8m, UAE 5m, Jordan 5m, Palestine 4m, Oman 2.5m, Kuwait 2m, Lebanon 2m plus other countries including Qatar, Bahrain, Cyprus. Market Overview: There are no specific HALAL Standards in these countries. All products imported or manufactured locally have to be HALAL. Most of these countries have no restrictions on import of Halal. Ready market for companies to export their Halal products & services. Turkey is an exception as it is already promoting itself as Halal gateway to Europe & developing its own Halal standards & certification.

  18. Halal Target MarketEast Asia & ASEAN East Asia and ASEAN: More than 360 million Muslimsincluding Indonesia 195m, China 133m, Malaysia 15m, Philippines 6m, Thailand 6m, Myanmar 2m and other countries including Brunei Darussalam, Cambodia, Singapore, Hong Kong, Japan, Vietnam, Korea, Mongolia & Taiwan. Market Overview: Huge Target market for Halal products. ASEAN countries are one of the world’s leading suppliers and also importers of HALAL products. They compete with each other in HALAL products but also do substantial trading among themselves. For example Indonesia is the biggest buyer of Malaysian HALAL food, creating a big opportunity for other Halal suppliers. China is an untapped market for Halal products and Halal suppliers should concentrate on exports of Halal Products in China, Indonesia and Malaysia.

  19. Halal Target MarketSouth Central Asia + Oceania South Central Asia: More then 600 million Muslims (including India 154m, Pakistan 170m, Bangladesh 127m, Iran 69m, Afghanistan 30m, Uzbekistan 23m, Kazakhstan 7m, Tajikistan 6m, Turkmenistan 4.6m, Kyrgyzstan 4m, and other countries including Sri Lanka, Nepal, Bhutan & Maldives etc Market Overview: It is a massive market for Halal products. Most are Muslim countries but without any HALAL certification. Halal suppliers should aggressively target this region especially Iran and the CIS. India is one of the biggest buffalo meat supplier in Asia but its also a very big market for Halal products due to its huge Muslim population and countries with land route with India can specially take advantage to push their Halal products in India. Oceania: Population of only 0.6m Muslimsin Australia, New Zealand, Fiji & other countries but the high per capita expenditure has made this small population, almost billion dollar market for Halal Food products.

  20. Halal Market Potentialin USA Muslim population in the Americas is almost 10 million (incl USA, Brazil, Canada, Central America, South America & Caribbean). American Muslims (particularly USA) are looking for HALAL products which are not readily available in their market. With a Jewish population of 5 to 6 million, the US Kosher market has been valued in excess of $100 billion annually with a range of 86,000 certified Kosher products on the shelves. However, a recent Mintel’s survey in the US shows, that only 15% of the Kosher customers are Jewish. 69% non Jews buy Kosher as they consider Kosher to be hygienic and good for health. And the balance 16% Kosher buyers in the US are Muslim! It shows that Muslims consume more Kosher products than Jews

  21. Why do American Muslims buy Kosher Products? Because there are only 1,000 Halal certified productsavailable in North America, and most are not available through the mainstream retail outlets. So, for every Halal product on sale, there are 86 kosher products to choose from… There are simply not enough Halal products on the shelves and US Muslims are spending $16 billion a year on Kosher products This is a very BIG opportunity for Pakistani exporters to push Halal certified products in North America

  22. Halal Food Market Potential Global Food Expenditure by Continent Total Halal Food Expenditure by Continent Global Food Market Size $ 3.99 TrillionHalal Food Market Size $ 632 Billion This chart shows that that the total global Food market is worth aprox $4 trillion annually, out of which Halal food share is $ 632 billion or about 16 % Where as Muslims today are 26% of total global population so the percentage of Halal food to the global food market is about 10 % less. This only indicate that even today there is potential of Halal food supply.

  23. Breakdown of Halal Food Market

  24. Halal Opportunities • Halal now covers a complete range of products offered in supermarkets, in 5-star hotels, Restaurants, Fast food chains, Airlines, School dinners, Military food and even Prison rations. • Halal has become a lifestyle choice with the wide range of products including personal hygiene, healthcare products, toiletries, cosmetics and many more ….. • The movement of Halal products around the world has created an entire Halal value chain. New sectors have emerged relating to Halal logistics, Security, Storage, Auditing and Halal industrial development. • Dedicated Halal-certified zones,Halal–Only Industrial Parks, Halal Food Parks, Free Zones, etc are part of the Halal industry.

  25. The Brand label of “Halal” Halal has now become an international brand. A brand label that is recognized for ‘Good Quality products’ expanding the Halal Certifiedtrade to almost $2 trillion, a year..

  26. The “Halal” Brand Products Sold in the world Under Halal Label

More Related