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Friday, May 24, 2024

Global halal market set to reach $7.7 trillion by 2025

The global halal market is poised for exceptional growth, with projections indicating a volume of $7.7 trillion by 2025.

The global halal market is poised for exceptional growth, with projections indicating a volume of $7.7 trillion by 2025. This surge is predominantly attributed to the expansion of the Islamic finance sector, closely followed by the dynamic growth in the food and beverage industry. Beyond these traditional domains, diverse sectors such as pharmaceuticals, medical, health, cosmetics, travel, and tourism are contributing significantly to the burgeoning halal market.

Islamic Finance Leading the Way

The Islamic finance sector has emerged as a frontrunner in steering the growth of the halal market. As financial systems align with Sharia principles, an increasing number of investors are seeking ethical and halal-compliant opportunities. This has not only bolstered the financial landscape but has also paved the way for the broader halal economy.

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Diversification Across Industries

The expansion of the halal market extends beyond traditional realms, encompassing pharmaceuticals, medical products, health services, cosmetics, and more. This diversification showcases the versatility of the halal industry, ensuring that various consumer needs are met while adhering to Islamic principles. Travel and tourism also play a pivotal role, offering halal-friendly services and accommodations.

Economic Reports 

Economic reports indicate a robust trajectory for the halal economy, forecasting a rise from $2.30 trillion in 2020 to an impressive $4.96 trillion by 2030. This substantial growth, amounting to a 115 percent increase over the decade, highlights the resilience and potential of the halal market in the current economic landscape.

Saudi Arabia’s Strategic Initiatives

Recognizing the immense potential of the halal market, Saudi Arabia has taken proactive measures to further develop this sector. The Public Investment Fund has played a pivotal role in establishing a specialized company dedicated to the development of halal products. Additionally, a center affiliated with the Saudi Food and Drug Authority ensures that all products, from meat and poultry to cosmetics and medical devices, adhere to Islamic principles in their production and storage.

International Demand Driving Growth

The increasing demand for halal products is not limited to Muslim-majority countries; non-Muslim nations are also contributing significantly to the sector’s rise. The global appeal of halal products, driven by a growing awareness of ethical consumption, positions the halal market as one of the most promising economic sectors globally.

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Saudi Arabia is actively promoting the halal sector, evident in events like the Makkah Halal Forum. Under the patronage of the Minister of Commerce, this three-day event, themed “Creativity in the Halal Industry,” was organized by Manafea and the Islamic Chamber for Halal Services (ICHS). The forum served as a platform for industry stakeholders to collaborate, innovate, and explore new avenues within the dynamic halal market.