KUALA LUMPUR: The halal economy is booming and with good reason. The world’s Muslims total 1.7 billion people today and that number is growing at two times the rate of the global population.
As a result the latest Global Islamic Economy Report estimates that the halal food and lifestyle products sectors could grow at a rate of nearly 11 per cent a year until 2019, to reach a total market value of $3.7 trillion. It therefore comes as no surprise that companies are increasingly looking for their piece of what is a sizeable pie.
“Demographic growth is a major driving force for growth in Muslim spend on lifestyle,” says research and advisory firm DinarStandard’s director of strategic insights Haroon Latif.
“However, there is a broader shift in consumer demand with millennials increasingly asserting their values online and Muslims globally expecting businesses to cater to their needs. This is driving higher penetration of ‘halal’ products and services in Muslim spend.”
The opportunities are vast. The Islamic finance market alone was estimated to be worth $1.814 trillion in 2014 and could rise to $3.247 trillion by 2020. But just as compelling is consumer spending in halal food, travel and fashion – expected to grow from $1.8 trillion in 2014 to $2.6 trillion by 2020, according to the GIER 2015/2016.
Combined, these markets could also be the solution to what the International Monetary Fund describes as ‘secular stagnation’ due to a decline in investments and an ageing population.
“The Islamic economy stands in stark contrast offering the most viable solution to global economic growth and success in the 21st century,” the GIER 2015/2016 notes.
