March 30, 2011

 

Pakistan sees export prospects in global halal market

 

 

Pakistan, being a Muslim country and now seen as a potential engine of economic growth, can assume a pioneer role in global halal food market, provided proper strategies are put in place.

 

The halal products are moving into mainstream business and their demand is steadily increasing.

 

Demand for 'halal' foods is increasing, not only in the US, Europe and Canada, but also in the Middle East, Southeast Asia, and North Africa and Australia. Halal consumers market / trade are growing fast in the world.

 

According to Pew Forum on Religious and Public life, the estimated (i.e., in 2010) total Muslim population has become 1.8 billion which constitutes 28% of the total Global Population of 6.8 billion. Of them, over 60% live in Asia, one fifth in the Middle East and North Africa. Some 400-600 million Muslims live as minorities in other regions. In Europe, there are an estimated 38.1 million Muslims. One million live in Canada whereas estimated eight million Muslims live in the US.

 

The global halal food market valued at US$635 billion in 2010 according to Halal Journal, a Kuala Lumpur based magazine as well as Islamic Food and Nutrition Council of America. It is about 16% of the total global food industry. The American halal market is estimated at US$17.6 billion.

 

Besides Muslims, other segments of population have also joined the rank of halal consumers. Non-Muslims also like halal foods because of its safety and sanitation features i.e., less likely to be cross-contaminated. The demography of Muslim population and increasing interest of non-Muslims makes the halal products as an excellent business / economic opportunity for manufacturers of halal products worldwide.

 

Besides the fast growing financial sector, halal products and services like cosmetic, hotels, fashion and insurance, which comply with Islamic law and teachings of the Koran, is well over US$1 trillion a year.

 

Over the last 30 years many halal markets such as ethnic stores and restaurants have sprung up in major metropolitan areas to cater the needs of Muslim population. In the past Muslims businessmen slaughtered their own animals but the concept of halal certification was foreign to them. Halal certification has become popular for domestic products as well as for exports specifically from non-Muslim countries.

 

Foods and beverages bearing halal certification are readily accepted by Muslim consumers, as well as customers of other religions, provided the certificate is issued by reputable certification body. The need for common seal of certification has become necessary for the facilitation of Muslim consumers.

 

Being a Muslim and agrarian economy, Pakistan is in the advantageous position to secure a significant share in the halal market if steps are taken in the right direction. But incidentally it has no presence, as yet, in the halal economy which essentially caters to the faith – related needs of Muslim consumers worldwide.

 

The local food manufacturers lack awareness about the magnitude of global halal market. They think halal in terms of chicken and meat only and not beyond. They need to catch up with missed opportunities inherent in growing global halal market of US$635 billion.