Halal practices are rooted in religious traditions. However, the Halal consumer market has expanded beyond religious communities to include non-Muslims seeking Halal products for various reasons. This includes dietary preferences, ethical concerns, and health benefits. It’s important for Halal practitioners like you to understand the Halal consumer market to cater to their needs and grow your business. In this blog, we will explore five key insights into the Halal consumer market.
1. The Halal consumer market is growing rapidly
The global Halal market is a rapidly growing industry, with an estimated value of US$2.1 trillion (excluding Islamic finance). According to DinarStandard, the global Halal market is expected to grow to US$2.8 trillion by 2025.
This growth is driven by the increasing demand for Halal products and services by Muslims and non-Muslims alike. With the rise of health and wellness trends, many non-Muslims are turning to Halal products for their perceived health benefits, such as being free from preservatives and artificial additives. As a Halal practitioner, this presents a significant opportunity to expand your business and reach a wider audience.
The COVID-19 pandemic has also contributed to the growth of the Halal market, with more consumers seeking Halal-certified products due to concerns over food safety and hygiene. This presents a unique opportunity for Halal practitioners to meet the needs of consumers who are increasingly seeking out safe and high-quality products.
2. Halal consumers are a diverse group
Halal consumers come from a wide range of backgrounds, nationalities, and cultures. According to Pew Research Centre, Muslims will make up 26.4% of the world’s population in 2030. Majority of the world’s Muslim population live in the Asia-Pacific region, while 20% live in the Middle East and North Africa. More than a fifth of all Muslims (23.3%) live in non-Muslim-majority countries.
As the Halal consumers are not a monolithic group, you as a Halal practitioner must understand the diverse needs of your customers. This includes considerations such as cultural sensitivities, dietary restrictions, and language preferences. By tailoring products and services to meet the unique needs of your Halal consumers, you can tap into a growing market and build strong relationships with your customers.
Furthermore, Halal consumers are becoming more discerning and informed, with many doing extensive research before making purchasing decisions. Therefore, you should be prepared to provide detailed information about the Halal aspects of your products, such as the ingredients used, the manufacturing processes, and the Halal certification process. By doing so, you can differentiate yourself in a crowded market and build a loyal customer base.
3. Halal consumers value transparency
Label Insight’s 2016 Transparency ROI Study revealed that nearly 9 out of 10 consumers say transparency is important to them across all food product categories. Three-fourths of consumers would pay more for products that offer complete transparency. Product transparency is important for consumers who follow Halal dietary guidelines for several reasons, including:
- Religious Observance: Halal is a set of dietary guidelines prescribed by Islamic law. Halal product transparency allows consumers to make informed decisions about the products they are purchasing and ensure that they comply with their religious dietary requirements.
- Health and Safety: Halal dietary guidelines require the consumption of clean and wholesome foods. Halal product transparency allows consumers to ensure that the products they are purchasing meet these requirements and do not contain any harmful ingredients or additives.
- Quality: Halal certification is a mark of quality assurance, which assures consumers that the product they are consuming meets certain standards of cleanliness, purity, and quality. Halal product transparency allows consumers to verify the Halal certification status of a product and make an informed choice about its quality.
As a Halal practitioner, it is important to provide clear and accurate labelling, as well as detailed information about ingredients and manufacturing processes. By doing so, you can build trust with the Halal consumers and encourage them to choose your products over those of your competitors.
4. Halal consumers care about animal welfare
Halal consumers are concerned about the welfare of animals. They often look for assurance that the animals were raised and slaughtered in a humane and ethical manner. This includes providing animals with adequate food, water, and shelter, and ensuring that they are not subjected to unnecessary pain during the slaughter process. Halal certification organisations often have strict guidelines in place for animal welfare and regularly conduct audits to ensure compliance.
A study conducted in Belgium found that high acculturated Muslims rely on animal welfare attitudes as a key factor that influence consumption of Halal meat. A survey conducted in Malaysia found that animal welfare was one of the top three reasons for non-Muslims to purchase Halal-labelled food.
As a Halal practitioner, it is important to provide transparency about animal welfare practices to maintain consumer trust and loyalty. You may consider obtaining Halal certification for your products and ensuring that they are sourced from ethical and sustainable suppliers. By doing so, you can demonstrate your commitment to animal welfare and appeal to the growing number of Halal consumers who value this aspect of their purchasing decisions.
5. Halal consumers are tech-savvy
The demand for Halal products has risen in recent years. With it comes a new generation of tech-savvy Halal consumers. These consumers are using technology to access information about Halal products, and to purchase those products in more convenient ways.
According to Mastercard, the increasing reliance on the internet, social media and smartphones for place discovery and travel bookings by Muslim millennials and Generation Z is driving a US$180 billion online travel market. Another report by Thomson Reuters revealed that technology is a key driver for growth of modest fashion through online retailing and social influencers. A study conducted in Malaysia proved that electronic word of mouth, social media advertisement and online ordering system significantly determined consumers’ purchasing behaviour.
These show the importance for Halal practitioners to invest in online marketing and social media campaigns to reach this tech-savvy audience. By leveraging digital channels to promote Halal products and services, you can increase their visibility and reach a wider audience. This can include creating social media content that highlights the Halal aspects of the products, or partnering with influencers and bloggers to promote your brand.
