DUBAI: Worldwide spending on global Halal food and lifestyle products could rise 10.8 per cent a year until 2019 to create an international industry worth $3.7 trillion, according to the latest Global Islamic Economy Report.
Commissioned by the Government of Dubai and produced by ThomsonReuters in collaboration with strategy and research advisory firm DinarStandard, the report says that the past year has seen major advancements in the global Halal food and lifestyle sectors. These include investments by a Brazilian Halal food provider in a UAE production plant, new Halal testing technologies from France, Malaysia and the UAE, and international marketing of Dubai as a new Halal and Islamic Economy hub.
At the same time, the Halal tourism sector, a huge driver of food, beverage and hospitality sales, has also advanced following product investments in the UAE, the Maldives, Spain, Japan, the Philippines and Russia, amongst others. The lucrative Halal tourism market now represents 11.6 percent of global tourism expenditure, excluding the busy Hajj and Umrah seasons, and is expected to be worth $238 billion by 2019.
According to the report, the Halal food sector alone will grow to a valuation of $2.537 trillion by 2019, up from $795 billion in 2014, equating to 21.2 percent of global food expenditure. The top countries with Muslim consumer food consumption are Indonesia, with a market worth $190 billion, Turkey, where the market is valued at $168 billion, Pakistan at $108 billion and Iran, where the market equates to $97 billion based on 2013 data.
Meanwhile, Malaysia, the UAE and Australia lead the report’s Halal Food Indicator, a gauge that focusses on the health of the country’s Halal Food ecosystem in relation to its size.
The UAE’s advancing status as an international centre for Halal food trading is evidenced by Halal World Food, the world’s biggest annual Halal food sourcing trade event, featuring more than 800 certified suppliers in only its third year. The segmented show-within-a-show concept at Gulfood 2016 returns to Dubai World Trade Centre (DWTC) from February 21st-25th.
“Adding more than 100 new Halal food companies highlights a leap in demand as major local, regional and international Halal food producers explore new areas of business opportunity and investment,” said Trixie LohMirmand, Senior Vice President, Exhibitions and Events Management, DWTC.
“The increase in our Halal exhibitors and companies is being driven by investment opportunities across the Halal food value chain, Halal food SMEs seeking Islamic financing for working capital, trade financing and expansion needs, M&A opportunities, organic, pure and wholesome new products, Halal ingredients and co-operation on building global or regional brands that deliver on Halal integrity.”