Overview on halal issues

Halal industry is rapidly growing due to the increased demand for halal products and services. There is also evidence to suggest that the demand for halal products by non-Muslims is growing too due to their perception of halal foods as being safer and more natural compared to counterparts’ products. It is estimated in a report by DinarStandard that “Muslims spent US$2.2 trillion in 2018 across the food, pharmaceutical and lifestyle sectors that are impacted by Islamic faith-inspired ethical consumption needs. This spending reflects a healthy 5.2% year-on-year growth and is forecasted to reach US$3.2 trillion by 2024 at a Cumulative Annual Growth Rate of 6.2%.” This growth rate is impressive, because not so long ago, when halal industry is mentioned what comes to the minds of many was only the supply of meat and meat products. Today the term halal industry has gone beyond meat and food to pharmaceutical, cosmeceutical, fashion, tourism and leisure/recreation, and their associated and support industries such as logistics, transport, analytical, and finance services. The rapid growth in halal industry according to many sources including DinarStandard is fueled by the growth in the population, affluence, and the adherence of Muslims to Islamic teachings; increased digital connectivity and ethical consumerism; multinational and Islamic countries drive for economic growth; and greater awareness and enforcement of standards and certification of halal products and services. The growth and complexity of halal industry is not without its issues (see the first figure for how complex the industry has become using just one halal research program of one research institute representing a tiny fraction of researchable issues). Many of these issues are being tackled as they arise with varying speed of implementations, using experiences from counterpart nonhalal industries, especially where the issues do not impact on the core halalness of products and services such as in management, logistics, and procurement. There are, however, halal industry issues that are longstanding, and others emerging, which require concerted and strategic effort to be resolved or avoided. These are grouped under the following categories: (1) production; (2) authentication and certification; (3) ownership and control; (4); training and capacity building; and (5) antihalal groups and economic Islamophobia.