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In the United States of America (USA)
Marketing experts in the US have observed that Muslims, estimated to be as many as nine million people in this nation alone, may be well assimilated into the US consumer culture but many also want to follow their religion's rules when they shop and eat. (IFANCA 2005)
The food buying power of Muslims in the US is estimated to be well over US$16 billion per year. The halal food market is growing at a rapid pace and is becoming an important niche market. This is further encouraged by the fact that halal food is not only consumed by Muslims, but people of other faiths too.
Consumer demand for halal food has resulted in a market that is growing so fast that consumers are now worried about fraudulent halal claims. Consumers are asking that halal claims be controlled by government agencies. This is evidenced by the approval of halal food laws in the US. The legislation was established to protect consumers against misleading halal claims. New Jersey was the first to pass such laws in 1999, followed by Illinois, California, Michigan, Minnesota and others.
In 2003, the state of Texas had added in its Business and Commerce Code, Chapter 17, a subchapter titled "SUBCHAPTER L. LABELING, ADVERTISING, and SALE OF HALAL FOODS."
New York passed the New York Halal Foods Protection Act in 2005. The Act requires businesses and individuals dealing with halal food to register their information with the New York State Department of Agriculture and Markets.
The following metropolitan areas have been identified as the top ten major US Halal markets:
- New York City, New Jersey, and Long Island Metropolitan areas
- Los Angeles
- Chicago
- Detroit
- Houston
- Dallas/Forth Worth
- South Florida
- San Francisco
- Atlanta
- Washington DC
In Europe
France is home to the largest Muslim community in Europe numbering 4.7 million people. It represents the largest halal market in Europe with sales ranging from US$2-4 billion in 2005. Hypermarkets and multinational food producers in France are increasing their selection of halal food. Halal consumers, whether Muslims or the general population, have cultivated multi-ethnic tastes which include Spring Rolls (Popiah), chicken nuggets, ravioli, halal soups, etc. The last five years have witnessed a steady rise in demand for ready made/prepared meals, canned and frozen foods. This trend is set to grow in other parts of Europe, which will be contributed to by the following population statistics besides France:
- Germany – 2 million Muslims
- UK – 1.5 million
- Netherlands – half a million
- Belgium and Austria – quarter of a million
This does not include the millions of Muslims living in Spain, Italy, the Baltics and the Scandinavian countries.
The port of Rotterdam is currently positioning itself as the strategic halal entry point for the European halal market. The port is putting in measures to segregate halal and non-halal products in its logistics facilities.
The European halal market is further boosted by the commitment of companies such as Nestlé. Nestlé operates 75 halal certified plants and offers more than 100 halal products to consumers. Halal products account for 35% of its Nestlé sales.
In South East Asia
It is well known that South East Asia is one of the strongest markets for halal products. Extra-ASEAN food exports are estimated at more than US$26 billion and imports at US$13 billion. Exports for non-food products (pharmaceuticals, personal care products, cosmetics, etc) are worth about US$4 billion and imports about US$2 billion. With 250 million of ASEAN's 537 million population being Muslims, the halal market is huge.
This is the region where halal awareness is the most obvious. Generally, halal is associated with meat and meat products, but in this region, due to an increased awareness about halal, non-animal based products such as flour, butter, sauces, milk, hair dyes, toothpaste, etc. have been halal certified.
Thailand has repositioned itself well in the halal industry. While promoting itself as the Halal Kitchen of the World, it is gearing itself towards becoming a recognized center of excellence in science and testing of halal products. Thailand plans to export processed chicken meat to the rest of the world. It is working on becoming the leading poultry exporter to the GCC countries. Its chicken exports are estimated to be worth US$1.2 billion.
Brunei has recently launched its own halal brand. Among other things, the Brunei halal brand is aiming to increase the marketability of its domestic industries and to diversify its economy.
The Singapore food industry records high growth in the Halal sector. Companies reported growth of 15-20% since going Halal. The issuance of Halal certificates by its Halal authority record an average growth of 15% per year since 2000.
In the Middle East
Middle East is an obvious strong market for halal products. GCC member countries include the wealthy nations of the Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and of Oman. Their annual food imports are estimated to be worth more than US$30 billion, while imports of non-food products (pharmaceuticals, nutraceuticals, personal care products and cosmetics) are worth more than US$2 billion. The demand for halal for this region is expected to grow.
In Other Markets
Other markets that have a huge demand for halal and business potential include Australia and South Africa. These regions have experienced tremendous growth in halal food production and export.
Conclusion
It was previously believed that only Muslim countries could produce halal food. Now we know that this is not true. Most Muslim countries import halal food from the USA, Australia, Canada, Ireland, the UK, Brazil, New Zealand and other countries. Currently, the annual halal trade is estimated to be worth well over US$500 billion annually. This could well reach the US$1 trillion mark in the next few years. This growth is perhaps attributed to the following factors:
Demographics
Globally, Islam is one of the fastest growing religions. This increase in population has been observed in many Islamic and non-Islamic countries, outpacing the supply of halal food. In addition, halal food is also consumed by non-Muslims. And this trend is observed to be growing. This is due to consumer awareness of the safety and health benefits of consuming halal foods.
Spending
It is also observed in many regions around the world that Muslim spending is substantial. The spending levels for halal have resulted in many companies benefiting from being halal certified.
Awareness
An increased awareness by consumers about halal food and food in general is another factor that contributes to this growth. Halal concerns have expanded from meat and poultry based products to other food and consumer care products. The increased awareness of the wholesome, nutritious, pure and safe nature of halal products has increased their appeal to consumers in general and they are now enjoyed by many non-Muslims.
References
CIA World Fact Book 2000 Halal Food Products Market Report – 2002; Agriculture and Agri-Food Canada Global Halal Food Market – July 2007 Agriculture and Agri-Food Canada Berita Harian: "8 Juta Langganan Islam di McDonald's Setahun" 28 Julai 2001 Global Market: Halal Perspective – July 2007 Shahlan Hairalah What Halal Consumers Want – August 2007 Shahlan Hairalah USDA: FAS Worldwide June 2007 Matrade – Paris, Product Market Study: Halal Market in France: July 2005 The Economist: August 2007 European Islam: A Profile; Jocelyn Cesari Halal Food Production - International and Domestic Domestic Trade in Halal Products 2004 Total Extra-ASEAN Trade by Product Chapter – 1999 to 2003, ASEAN Trade data & Regional Policy Division, Asian and Oceanian Affairs Bureau, Ministry of Foreign Affairs Japan – www.asean.org.jp (Middle East Databook, Middle East and North Africa – Regional Surveys of the World 2005, 51st Edition) www.foodsciencecentral.com www.allbusiness.com
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