ASIF INTERNATIONAL SDN BHD, Malaysia

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ASIF INTERNATIONAL SDN BHD, Malaysia
OPPORTUNITIES IN THE GLOBAL HALAL MARKET By
Abdul Kabur Ibrahim
PAK - ASEAN WORKSHOP ON HALAL FOOD PRODUCTION 11
12 March 2009, Karachi Pakistan
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GLOBAL HALAL MARKET
HALAL means what is permissible in Islam. Halal
Food is tayyib slaughtered according to the
specific parameters of Islamic law, good,
wholesome, healthy, untainted during the stages
of processing, packaging, storage,
transportation, cooking The HALAL Market is
fast becoming recognized as a vitally important
emerging market sector. It is a new market force
that should not be overlooked. With a global
consumer base of about 1.7 billion, the Halal
market is estimated to be worth trillions of US
Dollars and ripe for the picking, and thus it is
time that companies with halal products and
services should act fast to reap the potential
returns
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GLOBAL HALAL MARKET
The reason for this vast thriving market goes
hand in hand with halal products being widely
recognized for its safety and quality assurance.
This worldwide demand is not restricted as
consumers also consist of people from diverse
races and religious beliefs, thus providing a
huge boost to the halal industry Players from
every sector of the industry, from the huge
multinationals down to small enterprises are
looking to capture their share of this growing
market. Nestle, TESCO, Colgate etc are some
examples Currently, the Halal sector is low on
available data and research, and the companies
that can best understand this emerging market
with its complex customer base, plus all the
issues relating to certification and standards
are likely to be the most successful..
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HALAL PRODUCTS
HALAL PRODUCTS HALAL Products includes both Food
Non Food Items. HALAL Food is not only Meat
and Poultry but also other Food Items such as
- Confectionery - Canned Frozen Food - Dairy
Produce- Bakery Products - Organic Food - Herbal
Products - Beverages etc

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HALAL PRODUCTS
HALAL PRODUCTS CONTD HALAL Products also
includes Non-Food products such as -
Cosmetics - Toiletries - Beauty products -
Pharmaceuticals - Leather products - Perfumes
etc

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HALAL SERVICES

• HALAL SERVICES
• Besides merchandise, HALAL Services are also
  important components of the HALAL market
• - Islamic Banking
• - Securities Bonds
• - Travel Tourism
• Supply Chain Logistics
• Education Training- Food ServicesHALAL
  Logistics is important to ensure that a HALAL
  product remains HALAL from its origin to the
  consumer Farm to Fork

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SIZE OF THE GLOBAL HALAL MARKET
SIZE OF THE GLOBAL HALAL MARKET The Global Food
Market alone is estimated at USD 600 billion.
This amount is calculated based on the world
Muslim population of about 1.6 billion.
Although our market analysis is based on Muslim
consumers, we cannot overlook the non-Muslim
(Cross over markets) consumers/markets. The
demand potentials in the non-Muslim countries are
even larger. Again our statistics are based on
Food only. If we include other Halal products and
services and also the potential non-Muslim
consumers, the market could be worth trillions of
Dollars.

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MARKET OVERVIEW
World Muslim Population Continent Pop 2008
Muslim 2008 of Muslims (Million) (Million)
Africa 967 462 47.8 West
Asia 225 199 88.3 South Central
Asia 1,683 639 37.9 South East Asia 586
226 38.6 East Asia 1,557 40 2.5 Europe
735 51 7 N. America 332 6.8 2.2 S.
America 577 3.1 0.42 Oceania 33 0.6 1.5 ___
__________________________________________________
____________ Total 6,695
1,628 24.3 Islamic Source 1,791 26.7Source
www.islamicpopulation.com
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MARKET OVERVIEW
Estimated Global HALAL FOOD Market
Value Region Muslim Pop Per capita
food HALAL Food 2008, Mils expenditure
Value Market p/a USD Mils USD
__________________________________________________
______________ Africa 462
250 115,500 West Asia 199
570 113,430 South Central Asia 639
300 191,700 South East Asia 226
350 79,100 E. Asia 40 175 7,000 Europe (inc
Russia) 51 1,250 63,750 N. America 6.8
1,750 11,900 S. America 3.1 500 1,550 Oceania
0.6 1,500 900 _______________________________
__________________________________ Total 1628
USD 586,830 Source www.islamicpopulation.com
Euromonitor
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MARKET OVERVIEW
From a market perspective, the traditional major
target markets remain in Asia and the Middle East
(West Asia). However, there are influential
developing Halal markets in the UK, Europe and
the USA with significant market size. The
developing Halal markets of Europe and the US
play an interesting role, because they are
markets that also play defining roles in other
markets around the world As the dynamics within
the Muslim world change, and globalisation trends
continue to shape peoples tastes, habit and
spending patterns across the world, we are likely
to see moves in the developing Halal markets
having increasingly influential roles in the
established markets of the Middle East and
Asia. Now let us look at the specific markets
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SPECIFIC MARKETS
AFRICAN MARKET Northern Africa
(Muslim Population) Egypt 71 m Algeria 33
m Morocco 31 m Sudan 30 m Others Tunisia
Libya Western Africa (Muslim Population) Nigeria
65 m Niger 14 m Mali 13 m
Senegal 11 m Ivory Coast 12 m Ghana 7
m Guinea 8 m Others Mauritania
Togo Central Africa (Muslim Population) 17
m Cameroon, Chad DRC Southern Africa
(Muslim Population) South Africa 1 m
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SPECIFIC MARKETS

• AFRICAN MARKET CONTD
• Northern Africa
• Northern African countries have more than 90
  Muslims and are ready markets for HALAL products
  
• Need to create more awareness on HALAL standards
  and certification. Currently no HALAL standards
  or certification exist in these countries
• Good prospects to export Halal products and
  services to Sudan, Egypt and Libya

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SPECIFIC MARKETS

• AFRICAN MARKET CONTD
• Southern Africa
• Although South Africa is a small market but is an
  important market for HALAL products. It has four
  HALAL Certification bodies with various standards
  
• Muslims in South Africa are very particular on
  HALAL products and thus there is a ready market
  for Pakistani products
• South Africa could also be a gateway to the other
  Southern, Eastern and Central African countries.
  As such Pakistani companies targeting the
  Sub-Sahara African countries should utilize the
  South African networking.

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SPECIFIC MARKETS

• AFRICAN MARKET CONTD
• Rest of Africa
• Although there is a huge Muslim population in
  Western and Eastern Africa, the HALAL market is
  still not developed.
• HALAL Standards and Certification are not
  available in this part of the world
• Countries with good prospects for Pakistani
  exporters are Senegal, Ghana, Guinea, Nigeria,
  Ethiopia, Kenya, Tanzania and Mocambique

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SPECIFIC MARKETS
ASIAN MARKET - West Asia (Muslim
Population) Saudi Arabia 24 m Turkey 73
m Yemen 21 m Iraq 28 m Syria 17 m Others
UAE and Other GCC countries, Jordan, Lebanon
Market Review West Asia is a ready market for
HALAL products and services. Although there are
no specific HALAL Standards in these countries,
all products imported or manufactured locally
have to be HALAL (whether certified or not).
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SPECIFIC MARKETS

• ASIAN MARKET - West Asia
• Market Review CONTD
• Most of the countries are open for imported
  products and as such there is intense
  competition.
• In these countries the emphasis on HALAL is on
  Meat products. If the mindset can be changed to
  include other food and non-food items, then the
  market could be really huge.
• In the case of Turkey, it is already promoting
  itself as the Halal gateway to Europe and are
  coming with its own standards and certification.
  

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SPECIFIC MARKETS
ASIAN MARKET South Central Asia (Muslim
Population) India 154 m (220 m) Bangladesh
127 m Pakistan 158 m Iran 69 m Uzbekistan
23 m Afghanistan 30 m Others Kazakhstan,
Kyrgyzstan, Sri Lanka, Tajikistan,
Turkmenistan
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SPECIFIC MARKETS

• ASIAN MARKET South Central Asia CONTD
• Market Review
• South Central Asia is a massive untapped market.
• Most are Muslim countries but without any HALAL
  standards or certification
• Pakistani exporters should target this region
  especially Iran and all the Central Asian
  countries

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SPECIFIC MARKETS

• ASIAN MARKET East ASEAN
• China 39 m (130 m) (Muslim Population)
• ASEAN 226 m (Indonesia - 195 m, Malaysia - 15
  m)
• Market Review
• ASEAN countries are one of the worlds leading
  suppliers and also importers of HALAL certified
  products in the world. Although these countries
  compete in the international front, there has
  been substantial trading in HALAL products among
  them. For example Indonesia is the biggest buyer
  of Malaysian HALAL food.
• China is a huge and an untapped market.

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SPECIFIC MARKETS

• NORTH AMERICAN MARKET
• A market of 6.8 million Muslims who are looking
  for HALAL products.
• However HALAL products are not readily available
  in this market. The
• following illustrates the potential for HALAL
  products in the US market
• The US Kosher market, with a Jewish population of
  5 to 6 million, has been valued in excess of 100
  billion USD annually. There is a range of 86,000
  certified kosher products on the supermarket
  shelves.
• However, in Mintels recent survey in the US
  shows that only 15 of the kosher product
  customers are Jewish. 55 buy kosher because it
  is perceived to be healthier. 38 are vegetarian,
  24 want dairy-free. And 16 are Muslim!
• This shows that Muslims consume more Kosher
  products than the Jews

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SPECIFIC MARKETS
Why? Because there are only 1,000 Halal
certified products available, and most are not
available through the mainstream retail outlets.
So for every Halal product on sale, there are
86 kosher products to choose from! There are
simply not enough Halal products on the shelves!
US Muslims are spending 16 billion a year on
Kosher products Wouldnt they prefer to
buy HALAL products?
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SPECIFIC MARKETS

• EUROPEAN MARKET
• France 6 m (Muslim Population)
• UK 1.5 m
• Germany 3.1 m
• Russia 27 m
• Bosnia 2.34 m
• Others Ukraine, Albania, Italy, Netherlands,
  Bulgaria
• Market Review
• Relatively a small market but a serious market
  with high purchasing power
• Good prospects for Pakistani Exporters in UK,
  France and Germany
• Russia and Other markets need to create
  awareness

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MARKET FEATURES

• Since everyone is noticing Halal now, the
  competition for the Halal sector is getting
  intense.
• Halal is more and more a complete range of
  product offering in supermarkets chains
  worldwide, as well as in 5-star hotels and
  restaurants and fast food chains, airline meals,
  school dinners, military and even prison rations.
  
• We see this phenomena applying not only on food
  items. Personal hygiene and healthcare products,
  toiletries and cosmetics are all appearing as
  Halal options. Once Halal is understood as a
  lifestyle choice, the range of option increases
  exponentially.
• So the question naturally arises, where to find
  Halal certified products? Because most of the
  Muslim majority countries do not consider
  Halal-certification necessary or have not done
  till now they cannot provide Halal certified
  products to the international markets.

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MARKET FEATURES

• Because with the movement of Halal products
  around the world, the increase in awareness of
  Halal in general, and in turn added value
  surrounding Halal, and of the holistic and
  interdependence of the entire Halal value chain,
  we are seeing entirely new sectors emerging,
  relating to Halal logistics, security, auditing
  and industrial development.
• With major investment in Halal production and
  manufacture at one end of the chain, and major
  investment in the retail sector at the other end,
  maintaining the integrity of the Halal chain at
  all points in between is becoming increasingly
  important.
• The Halal integrity in the handling, storage,
  warehousing, and transportation by road, sea and
  air of Halal certified products, and also
  dedicated Halal-certified zones are fast becoming
  a reality.

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MARKET FEATURES

• The creation of controlled Halal only
  industrial food parks, free zones, DistriParks
  will be part of the future of this Halal
  industry. As the market demand continues to
  increase, more links in the supply chain will be
  created.

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LIMITATIONS

• LIMITATIONS CHALLENGES
• Currently there is no single standard that is
  recognised worldwide.
• There are also numerous Certification bodies
  worldwide, of which their recognitions vary from
  country to country. The World HALAL Council which
  monitors the various Certification bodies has not
  been able to come up with a single standard for
  its members.
• Lack of data on HALAL Trade - There is no proper
  classification of HALAL products under the
  Customs code and as such data on actual trade are
  difficult to obtain
• Most Muslim countries do not impose Halal
  Certificate as a compulsory requirement
• In Pakistan there is no recognised Halal
  Certification body and as such its products may
  not be accepted in some countries

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OPPORTUNITIES RECOMMENDATIONS

• OPPORTUNITIES RECOMMENDATIONS
• There are ample opportunities for Pakistani
  Companies/organisations
• to develop its Halal Industry and to tap the
  expanding Global Halal
• Market.
• Pakistan should develop its own Halal Standard
  (probably with the assistance of ASEAN countries)
  and a Certification Body which should be
  recognised by the World Halal Council and its
  members.
• There is a big potential for Pakistani Companies
  to manufacture and export Halal Certified
  products to the world market.

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OPPORTUNITIES RECOMMENDATIONS
- There are about 1.7 billion Muslim consumers
of HALAL products in the world. The number is
increasing rapidly. With increasing awareness,
more and more countries are requesting for HALAL
certified products. The demand from non-Muslims
are also increasing. - More and more
Supermarkets and Hypermarkets are adding HALAL
Shelves to attract ethnic Muslim population in
non-Muslim countries egs. TESCO in UK and
CARREFOUR AUCHAN in France- Around 80 per
cent of the Halal food industry is in the hands
of non-Muslims. The Brazilians have been big
halal producers for decades. Three-quarters of
chickens exported by France are halal. Being a
Muslim country, Pakistan is in a more advantaged
position to tap this growing Halal market
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OPPORTUNITIES RECOMMENDATIONS

• Pakistan could promote itself as the Halal
  Gateway to Central Asia and the Middle East. This
  would attract investments into Pakistan in Halal
  products manufacturing especially from non-Muslim
  countries which are eying on these markets.
• By developing its infrastructure and facilities
  such as Halal Parks and Logistics, Pakistan could
  be a Regional Halal Hub in the South and Central
  Asian region. This would further attract
  investments and increase in exports.
• There are also opportunities to develop Halal
  Tourism in Pakistan Halal Tourism Activities,
  Halal Airlines, Halal Restaurants and Halal
  Compliant Hotels

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OPPORTUNITIES

• Pakistan is also encouraged to develop itself as
  a centre for Halal Research, Science and
  Technologies, which could give the country more
  credibility in the International market.
• Huge potential for Islamic Financial services,
  which is an ally of Halal. Pakistan is already
  becoming an important player in Islamic Finance.

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Thank You
HALAL is on the move. It is being reborn into
the age of globalisation, and indeed,
globalisation suits the nature and quality of
HALAL. HALAL is made to be global. HALAL is
for everyone. THANK YOU