How Indonesia’s Turn to Halal Food Could Change the Global Food Industry

The Halal food market is now worth billions of dollars and is expected to continue to grow. In addition to the growing demand for Halal food, environmental factors favor Halal meat. As producers of halal consumables adapt to the modern needs of Muslims and other people, it is worth paying attention to the significant growth in halal products and the overall market.

According to Market.us’ research,” Global Halal Food and Beverage markets were valued at USD 1.64 Trillion in 2022 wherein the halal market comprises 1.9 Billion consumers. They are expected to experience a CAGR of 5.1% between 2023 and 2032.”

Market.us research team quoted,” The rapid expansion of the Muslim population and increased concern over hygiene, reliability, food safety as well as quality. This led to consumers opting for halal-certified food over a regular meal.”

They also added,” Islam, the fastest growing religion in the Asia Pacific, contributed to over 58% of the global marketplace in 2021. Thus due to the high Muslim population, the demand for halal food is increasing”

Halal, which is an Arabic word meaning “permissible,” refers to a particular way of killing an animal that conforms to Islamic law. It involves cutting off the animal’s throat, draining blood from the carcass, and reciting a dedication to God. Although halal is usually associated with food products, it can also be applied to other consumer goods and services. Global halal products include cosmetics, finance and banking, travel, pharmaceuticals, and others.

Indonesia has set a goal: To be a world leader in the halal food and drink industry market in the upcoming years. According to the data from the State of the Global Islamic Economy (SGIE) Report in 2022, Indonesia was ranked second in the number of halal product users. Despite this, Indonesia accounts for only 3.9% of the world’s total halal market exports.

R.Hendrian, the acting deputy for the research and innovation utilization at the National Research and Innovation Agency (BRIN), stated the importance of technology and research in popularizing the Indonesian halal food market. BRIN has therefore produced various research and innovation results that support the halal sector, particularly in applied research that can benefit business actors and the general public. These include food packaging methods, halal detection instruments for various foods, and alcohol detection tools.

In October 2022, Brazil’s investment agency, ApexBrazil, and the Arab Brazil Chamber of Commerce joined hands to boost halal product exports from Muslim countries. The agreement will require a 30-month investment of approximately $2.79 Million to diversify exports. Brazilian food companies interested in applying for halal certification for their products will be eligible for subsidies under the initiative.

Tamer Mansour is the Chamber’s Secretary-General. He stated that the Chamber aims to make it possible for 500 Brazilian food and beverage exporters to participate in the global Halal Food Trade. This agreement will increase trade between Brazil and the 22 Arab League member countries. It will also help to increase Brazilian exports to Malaysia and Indonesia.

Along with the halal food market, the cosmetic and apparel market is just behind the food market. Malaysia and Indonesia are two of the top producers of halal cosmetics. Both countries have well-established halal regulatory frameworks. A key factor in the industry’s rapid growth is that fashion for halal does not require certification, as it is not regulated by halal food and pharmaceuticals.

On October 2022, in India, during a festival named Diwali, Hindutva Organizations led protests to boycott Halal products and companies like Mcdonald’s. The right wings had asked Hindus to refrain from using products marked with Halal and boycott Muslim meat sellers.

Anyone who can balance efficiency, hygiene, profits, and profit will be a responsible halal practitioner and triumphant. According to the Islamic resurgence’s call to fully develop Islam, the halal food industry will expand to include other aspects of social life. This may not work well with all segments of the non-Muslim population, which will increase the challenges for halal industry leaders. But halal operators are likely to make the necessary efforts to stay competitive and survive due to their profit motive and religious merit.