Halal products be it Halal foods, Halal Cosmetics, Halal Travel, etc. India with some 200 million Muslim population makes an ideal Halal market that still remain untapped at large.
Fact 1 :
India is the country with the largest Muslim population outside Muslim-majority countries, having about 200 million Muslims.
The global halal product market is valued at US$2.3 trillion with the most significant market lying in the selected Asian countries where Halal products have been found to be widely used by even communities other than Muslims.
Faith-based marketing, especially Islamic marketing are limited to few Southeast Asian nations such as Malaysia, Indonesia and Vietnam. Halal food, which is a by-product of faith-based marketing, has not been able to draw adequate attention from the halal product manufacturer or provider in India, the largest consumer of halal foods.
The fact that halal products as food items derive their value from religion and society is not surprising. The term “halal” is an Arabic word which means permitted or lawful under Shariah, i.e. Islamic law. The concept of halal influences consumption practices of millions of Muslims across the globe and its not merely a brand element.
The global demand for products which adhere to Islamic law generates an annual US$900billion worth of sales for the food industry alone. India spend the least on halal food approx. US$38billion compare to Russia that spend US$41 a country with only 10 million Muslim population only.
Halal is the all-encompassing concept with various connotations because of social and cultural differences. Religious conformity prevents further evaluation by the consumers. Consumers’ purchase intentions for meat (and meat products) have been found to be more strongly governed by religious beliefs than those for any other commodities.
As Islam is the second largest religion in the world, the halal product market is expected to grow to over 58.3 billion by 2022. The largest sector of the global halal industry is Islamic finance with a 43 percent share of the market, followed by halal food with a 36 percent market share. – statista.com
Effect of Halal Products Certification
India is home to the one world’s largest Muslim population, offer an excellent opportunity for halal product businesses to flourish. Indian brands such as Bikano an Indian manufacturer of Indian snacks and sweets has witnessed a net surge of 30 per cent in their sales saw its sales jump by 30 percent after its products received halal certification. The company has credited this growth to halal certification which they had acquired a few years ago .
Halal Care: a household name for cosmetics
The concept of halal products has gone beyond the meat market. In 2014, Halal Care became the first Indian company to manufacture halal cosmetics. The company has a market presence across seven states of India.
Halal cosmetics are increasingly becoming an untapped business opportunity for developing countries. Such product positioning is new to India. A market outlook report by the Associated Chambers of Commerce & Industry of India (ASSOCHAM) estimates that India’s grooming and cosmetic industry will grow to US$35 billion by 2035 from US$6.5 billion in 2017.
Healthcare problems associated with traditional cosmetics are also compelling consumers to shift towards more organic-based products. Indian consumers, especially the youth cohort, are becoming conscious of the ingredients and manufacturing process of beauty and personal grooming products.
Halal Care is India’s first certified halal personal care brand. The company was established in 2014 by two sisters, Mauli Teli and Grishma Teli, who had worked in the USA as professionals in management consulting and biotech R&D, respectively, before quitting their jobs and moving back to their hometown to start the venture.
In the first year of its inception, the company had launched 60 cosmetics products. By the end of March 2018, the company was selling over 100 different products to its valued customers . Today, the company has exclusive stores in more than seven Indian cities.
Further, the company has collaborated with some of the biggest e-commerce groups in India such as Flipkart, Amazon and Nykaa. The company has experienced a five times growth throughout 12 months. It also exports its products to USA, Australia, Russia, Kazakhstan, South Africa, Mauritius and other countries. International news agencies such as BBC, The Week, CNN, IBC and World News have covered the company’s success story.