F&B businesses fit to consider Halal certification may endeavor to engage with the two billion consumers globally that make up the $1.5 trillion market, Mohammad A. Hussaini, director of the American Halal Foundation, explained to The Food Institute.
Consumer-led demand is driving opportunity in the space. Less conservative estimates note that the Halal market may even be as much as $2 trillion globally, and is projected to grow to $2.8 trillion in the coming years.
Additional forces driving growth include countries, such as Muslim majority Indonesia, requiring imports to receive mandatory halal certification, as well as the fact that Islam is the world’s fastest-growing religious group. Between 2010 and 2020, the number of Muslims grew by 21%; today, these consumers represent 26% of the global population, according to Pew Research Center.
Halal certification may help F&B businesses appeal to this growing religious population while catering to those who do not follow the religion, however, appreciate what a Halal certification could mean for their lifestyle.
“Some companies view Halal as a means to complement or round out their other certifications, such as Kosher or organic, as they aim to appeal to as many consumers as possible,” said Hussaini.
“Halal often signifies more than just the religious requirement. It shows that the company has been audited and is more trustworthy.”
Like the Kosher certification, these third-party credentials communicate the authenticity of a product to abide by certain food safety standards beyond those required in their country.
For example, Imam Mansoor Rafiq Umar, CEO of Halal credential agency Halal Watch World, told FI that he’s noticed how the halal certification is becoming a more common request, even among non-Muslims.
“The request is part of wider concerns over humane slaughter practices, ingredient traceability, and global food sensitivities,” he said.
What is Halal?
Halal products must abide by a set of requirements and maintain traceability documentation that proves the product follows these rules from raw ingredients to consumption.
Some traditional requirements include minimal animal suffering and the absence of alcohol and its derivative products, pork and pork byproducts, blood, and/or carnivorous animal parts (excluding fish).
Hussaini noted that, although the certification process can be daunting, it can often be attained alongside other certifications, including non-GMO, gluten-free, or Vegan.
When asked about how consumers view third-party certification, he explained that consumers today are demanding certification from their CPG products while rejecting “self-certification,” or claims that lack the rigor of third-party agency verification.
Opportunities for U.S. Businesses
In addition to tapping into a large market and abiding by international laws to export to more countries and regions, the certification also allows F&B businesses to supply to other Halal-certified companies, as each ingredient in a Halal-certified process must also be considered Halal.
“Obtaining halal certification enables market participants a preferred opportunity to supply to these firms,” said Hussaini.
This can enable a business to earn an additional income stream by partnering with the network of thousands of certified Halal companies or transition its operations to a B2B model if it makes more sense for the product.
The F&B competitive environment continues to become more difficult for challenger brands to gain market share. Any points of differentiation, such as a third-party certification, could be the key to unlocking a brand’s next stage of growth.
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