The State of the Global Islamic Economy 2019/20 report released in November 2019, indicates 1.8 billion Muslim around the world spent 5.1% more on halal food and beverages in 2018 to reach $1.37 trillion versus the previous year.
DID YOU KNOW – the top halal food exporters to the 57 Organisation of Islamic Cooperation (OIC) member states remain non-Muslim countries.
Muslims spent overall a $2.2 trillion on halal and Islamic lifestyle sector. The lifestyle sectors include apparel, travel, and media and recreation. The expenditure on F&B accounted for around 63.6%.
The Muslim segment makes up around 17% of global food and beverage spend, said the report produced by growth strategy research and advisory firm DinarStandard.
Indonesia leads with $173 billion spent on F&B, followed by Turkey on $135 billion and Pakistan on $119 billion.
However, the top halal food exporters to the 57 Organisation of Islamic Cooperation (OIC) member states remain non-Muslim countries.
Major halal meats exporter Brazil sold around $5.5 billion to OIC states, followed by Australia’s $2.4 billion and $621 million from Sudan.
Overall, $210 billion in food and beverages were exported to OIC countries in 2018, according to the report.
Key challenges for the halal food sector still revolve around certification as a means to reassure Muslim consumers their food truthfully adheres to Islamic requirements.
“As the food production chain has changed, Muslims have had to pay heightened attention to labeling of products across the value chain, with concerns spanning non-ritually slaughtered meat to porcine gelatin, additives and colourings,” said the report.
As the halal sector continues to grapple with many regulations, standards and certifiers, it is increasingly also being asked to be mindful of its social impact.
“Halal certification continues to remain fragmented throughout the world, with sustainability not yet a core component of the certifying process,” the report said.
It puts the number of countries with halal regulations at 52.
“Albeit with some positive development in halal, the halal food industry can play a stronger role in supporting the environment and in driving improved outcomes for the world’s poorest,” it added.
The halal food sector, said the report, has “substantial runway” to realise its full ethical role. More at Salaam Gateway.