“Halal” is an Arabic word that means “permitted” and it is generally used to describe foods that Muslims are allowed to eat according to Islamic guidelines mentioned in the Qur’an. In Islam, most food and drinks are considered halal unless they are clearly stated as forbidden in the Qur’an and hadith.

Muslim consumers prefer that all the products they need and consume in their lives be halal. They pay attention to the halal certificate while purchasing products from food and beverage to cosmetic materials. Due to this need and concern, the halal industry grows at the same rate as the Muslim population grows. In fact, many non-Muslim consumers now prefer halal products since they associate halal with ethical consumerism.

The global halal market is expanding especially with the economic development of leading Muslim countries such as Indonesia, Malaysia, India, Pakistan, Nigeria, and Iran. Moreover, countries such as China, Thailand, Japan, South Korea, and the Philippines have been investing heavily in the halal industry and the market size is expected to reach USD 9.71 trillion by 2025. In addition, the growing number of halal-certified products is expected to drive the global halal market over the projected period.

In fact, although the halal industry is perceived only as the food industry, today it has gone beyond the food to become a concept that encompasses many product groups and services ranging from pharmaceuticals, cosmetics, and toiletries to medical devices and even marketing services.

 Interestingly,  the halal food market has become one of the most profitable and effective market areas in the world. Halal food has mainly three types which include fresh products, frozen salty products, processed products, and others. With the increasing Muslim population and economic development, consumers will need more halal food products. Globally, halal foods are more in demand in East Asia and the Middle East, and North Africa and halal and the market size is expected to grow by 6.1% in the next five years.

As stated, the halal food market has become a growing, promising, and highly demanding market. For this reason, many international companies are investing in the halal food market and are expected to increase these investments day by day.

Multinational and global companies are expanding their facilities to find opportunities in this market. For example, in 2018, Haribo, a gummy producer, opened a halal candy store in the UK. In the same year, Japan’s Mitsubishi Corporation invested in Al Islami Foods, a halal manufacturer based in the UAE. This strategic investment will not only increase Al Islami Foods production but will also meet the demand for halal products at home and abroad.

Not only the halal food and beverage market is increasing in popularity but so are halal tourism, halal media and recreation, Islamic finance, modest fashion, halal pharmaceuticals, and cosmetic products and services. For instance, the halal media and recreation industry has more than 4% of the global market share.

According to the Global Halal Market 2018 Consumption Analysis, the demand trend for this type of content from Muslim countries is on the rise. Furthermore, the halal pharmaceutical and halal cosmetics together had 4% of the overall market share in 2017. In the last decade, the halal pharmaceutical and halal cosmetic market have gained prominence and more products are manufactured with halal standards. Likewise, the number of Islamic finance and banking institutions is increasing every year all over the world. So, the Halal consumer market is growing rapidly and still has many opportunities for investors. The most critical thing that needs to be done to get into these markets or to increase success in the market is to reach the right audience with the right tools at the right time. In this digital era, it is a must to use digital marketing tools in order to understand the demands of the developing halal consumer market and the changing needs and wants of Muslim consumers accurately. At this point, working with digital marketing agencies seems to be a logical alternative. Muslim Ad Network is able to reach more than 100 million Muslims around the world monthly with its digital products and strategies such as “Reach Muslims Anywhere”. It is one platform to reach millions of Muslim consumers wherever they browse online, including the Internet’s most popular websites, social media platforms, mobile apps, and more. Through Muslim Ad Network, brands can effectively target ads to Muslim consumers instantly across thousands of websites and apps. 

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The most important factors in increasing incomes of Muslims include better education, better jobs and having a much younger population than the world on average. In general, the Muslim population live in 30 different emerging markets, in which they make up the majority population. Overall, these economies consists of more than 12% of the world’s GDP and one-fifth of its population. Broadly speaking, the Muslim population is growing, Muslims work harder are more productive, and are earning better than before. According to Statista, the existing Muslim market size is approximately valued at $2.11 billion and has potential to grow to about $3 billion by 2023.

Existing and potential value of the Muslim market worldwide in 2017 and 2023 (in billion U.S. dollars) Source: www.statista.com

The Muslim lifestyle market is estimated to be more than $26 trillion, and the Muslim population is more than $1 billion, including more than 81 countries. It has a very young demographic structure that grows not only in numbers but also in terms of spending and impact. Besides, Muslim consumers seem to be hesitant about linking with brands.

Unfortunately, Muslim consumers’ wants and needs are not taken into account by marketers to give an accurate analysis and the power of the Muslim economy is often underestimated. Muslims are a largely underserved and frequently overlooked economic sector. According to the Pew Research Center’s world wide survey 90% of Muslims claims that their faith impacts their buying habits, therefore categorically ignoring the needs of Muslim consumers is clearly a costly mistake.

However repeated studies show that two-thirds of Muslim consumers are consistently disappointed by Western brands. Do brands consider Millenial Muslim consumers? How should we describe this new generation? These young consumers are very understanding, very knowledgeable and blame the brands for this situation. They want to see that they are served correctly and respectfully.

What we see is the emergence of young consumers, they are more conscious buyers who focus on values and ethics. They want to relate to their standard values, but at the same time they are very conscious with the environment, eating healthy and peace. These kind of consumers are basically being considered as the new segment of the Muslim market. One of the characteristic features of Generation M (Millennial Muslims) is the reconciliation of faith and modernity. As mentioned before, more than 90 percent say that their beliefs somehow affects their consumption, not always and for everything, but in some way. This is a starting point for brands. Young Muslims, whether or not they are in the communication or content of brands, want to be recognized and linked.

Opposing the prejudices of both the West and the East, this group prefers to exist within the globalizing world while preserving its own identity. At this point, brands must have the deep insights that go beyond stereotypes in minds, and the courage and foresight to put into practice right strategies.

Briefly, brands need to understand how fast the Muslim consumer market is expanding, realize the opportunities in this market better, and make more efforts to connect with young Muslim consumers that consists of a big percentage of this market.

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