Halal is everything that contributes to a better life, in a responsible, balanced, healthy and respectful manner, both at individual level and also in our personal and social relationships.
Unequivocally rooted in the Islamic spiritual practice, “halal”, in the 21st century means committing and responding to a series of challenges and opportunities, making this concept a key element in international relations and trade nowadays, and of course, in our national reality.
The Halal or Islamic Economy is currently valued in more than 3 trillion dollars, with the Food & Beverage Industry representing more than a third of this quantity.
Food is probably the more commonly associated concept with halal, but there are other emerging economic segments, with a steady growth, such as Muslim-friendly Tourism, Halal Cosmetics and Pharma, Modest Fashion, Islamic Edutainment, etc, aimed at offering suitable products and services to the millions of consumers requesting them.
Cosmetics, pharmaceuticals, fashion, retailing and logistics are all sectors with impressive figures in the halal global market. We may think that “halal” products are addressed for a narrow segment of consumers, bit it will actually reach beyond the 1,600 million muslims in the planet, including other people who find in the halal product and service an indicator of ethical background, quality product, committed management and trust. Only in Spain, 30% of halal product consumers are non-muslim.
Halal is therefore a great opportunity which is already acknowledged by World Trade Organisation and other international institutions. But, as any other business, it requires conquering new markets, for which it is essential to acquire specific knowledge and implement certain requirements that will guarantee a successful access to the new global economy.
Halal is a broad concept, and it is more specifically expressed in the various standards extant in the world. They regulate halal production and marketing, be it products or services. The variety of halal standards reflects the great diversity of Islam and the existence of different juridical schools which operate in a particular cultural background. On the other hand, halal standards integrate other technical aspects, such as hygiene, good manufacturing practice, sustainable production, environmental concerns, food safety, quality, etc.
Having a Halal Quality Management System in place is essential, for it is a requirement for exports bound to particular destinations. It is a must to enter and move up this market. To know the different standards, halal schemes, markets, preferences and consumers will help the producers to gain an optimum position for their products in these attractive and dynamic markets.
The world of businesses is changing, and it is not only because of the new forms of production and trade, but, as the case of the halal markets, because the emergence of new commercial paradigms.
The global halal market, based on the preferences and needs of more than 1,6 billion muslims worldwide, emerges as a new powerful economic scenario. This represents relevant opportunities for companies, wishing to enter this market valued at 3 trillion dollars. The Halal Sector is more and more attractive for the public and private sector due to is great growth potential.
The 3 trillion USD market
According to the report State of the Global Islamic Economy 2016-2017 by Thomson&Reuters and DinarStandard, the Islamic Economy will reach 3 trillion USD by 2021.
Considering the economic sectors, Islamic finance will reach $2 trillion in investments. Food and beverages expenditure was valued at $1.17 trillion in 2015, followed by Modest Fashion, with $243 billion, mass media and entertainment reached $189 billion, travelling and tourism, $151 billion, and pharmaceuticals and cosmetics, which reached $133 billion.