The halal marketplace is emerging as one of the most profitable and influential market arenas, which has characterized the consumer products sectors in general and the Halal food segment in specific through its steady growth and the high demand by consumers towards these products. The halal food market has grown strongly over the past decade not only among Islamic countries, but also worldwide.
The global Muslim spending on food, beverage and lifestyle sectors is currently over $2 trillion, and projected to be over $3 trillion by 2022.
It is important to note here the expansion and reconsideration of the concept of halal products, which has crossed the conventional understanding that was related mainly to meat and poultries, to cover new set of products such as cosmetics and personal care, leather and textiles, medicines and pharmaceutical products, and has also expanded to varies services such as hospitality and tourism, cargos and logistics., where the Global Muslim spending across lifestyle sectors was $2 trillion in 2016, while the food and beverage leads Muslim spend by category, at $1.24 trillion, followed by clothing and apparel at $254 billion, travel at $169 billion, and spending on pharmaceuticals and cosmetics at $83 billion and $57.4 billion respectively.
The Islamic Economy has provided an excellent opportunity to promote the halal industry and offered a wider range of new services, and there are significant opportunities for investment and the creation of global Halal Food brands, with spending expected to reach $1.93 Trillion by 2022.However, the industry still faces many challenges such as the absence of unified criteria for accreditation practices and conformity assessment of entities operating within this framework. In terns, this diversity has affected the technical evaluation requirements for halal products, which obviously influenced the trade facilitation between countries in halal domain.
Muslim population is growing tremendously from year to year with 1.6 billion worldwide, while the world halal market has expanded in recent years resulting in more demand on halal products and services.
With the steady increase in Muslim population in non-Muslim countries, the demand for Halal food has also increased, and it is essential to explore on new mechanisms that meet consumers’ needs and replace the conventional understanding of halal to ensure its sustainability and grow at the same pace.
The International Halal Accreditation Forum (IHAF) initiative is an integration of the efforts exerted by the Organization of Islamic Cooperation (OIC) to create unified halal standards in order to facilitate the trade among its members. We believe that IHAF goes hand in hand with OIC efforts through the implementation of IHAF criteria and procedures of halal conformity assessment and accreditation, to ensure the outcome of the halal conformity assessment bodies, and to attain consumer trust in varies products that holds halal certificates and marks worldwide. We also seek, through our work at IHAF, to establish multilateral recognition agreements between our members of accreditation bodies in order to eliminate the TBT and facilitate the global trade in halal. For instance, halal certified food and beverage industry is estimated to exceed $1 trillion in 2030.
We believe that greater cooperation among partners and concerned entities of halal system will consolidate efforts and achieve common objectives that goes hand in hand with the World Trade Organization calls of elimination of TBT, and meets the Halal consumer’s expectations in the same time.