“Population changes, increasing disposable income and growing internet penetration are some of the key factors driving growth of halal products demands. Disposable income of countries with the top five biggest Muslim-populations such as Indonesia, Pakistan, India, Nigeria, Iran, have grown by 257 percent and internet penetration has risen by 31 percent for these same markets,” says Euromonitor International’s senior analyst, Emil Fazira.
The Muslim population grew by eighteen percent over the last 10 years compared to the global population growth of eleven percent, strengthening demand for halal food, drinks, beauty and fashion products among others. “Young adults are the main users of social media and internet. They become more interested in the latest trends, global events, and use multiple social media platforms. This makes new food and service experiences, fashion and cosmetic products more accessible to them,” Fazira added.
Within Asia, non-Muslim majority countries like Singapore and Philippines are major markets for halal packaged food and drinks, at $1.4 billion and $7.5 billion respectively. This is partly due to the integration and acceptance of halal products in the general community, as well as strengthening halal infrastructure. Indonesia on the other hand, is expected to show the largest sales gains in US dollars over the next five years, due to its significant market size and positive forecast growth.
“When identifying markets and industries, studying the market’s halal infrastructure to balance halal-certification with consumer values is crucial. Choosing the right audience and catering to them is another issue that companies must keep in mind,” concludes Joanna Chan, research analyst at Euromonitor.