THE GLOBAL HALAL MARKET

22nd March 2011

An Insight into the Halal Opportunities and Halal Malaysia Certification
Copyright HDC 2010

Diverse Sectors In The Halal Industry
Halal is a
Ingredient & Additives

Food Logistics

VALUE PROPOSITION that exist within key elements of

Pharmaceuticals

Halal Product and Services

Cosmetics

the supply chain
of the intersecting
Islamic finance Drugs and vaccines Animal Feed

industry sectors

Why go Halal?
Germany has about 3.5 million of Western Europe's 20 million Muslims According to the European halal control and certification authority in Ruesselsheim , about 400 companies in Germany offer halal products There are 1.4 billion muslims worldwide. Muslims are expected to account for 30% of the world’s population by 2025 Global halal trade is estimated to be $80 Billion or some 12% of total trade in agrifood products. Halal certified products are viewed by Muslims as a mark of quality and an added religious safeguard. Halal products can be consumed by muslims and non-muslims

but on developing consumer goods industry with Halal as one of the Value Proposition .Halal as a Value Proposition Primary Industries Halal Products and Services Halal Compliance Food Cosmetics Food Cosmetics Healthcare Logistic Services Healthcare Logistic Services Focus should not be on developing ‘Halal’ industry.

environmental and sustainability issues Media & NGO’s more vocal and active Reputational risk a huge concern for brand integrity Traceability becoming critical Where are you in the supply chain and would your customers be happy with your performance Source : Courtesy of INTERTEK .Global Consumer Concerns CHANGED CONSUMER MINDSET Better educated and informed Concerns moving from physical product attributes to spiritual. social.

Global Gap. HACCP Halal TGI. Laboratory Analysis and Traceability Training. Halal. 22000. OHAS 18001.Agri-food supply chain – Integrated From Farm To Fork Grower/ Farmer GlobalGAP. SA 8000.TGI. Technical advisory and Capacity Building to International Standards . GSV Source : Courtesy of INTERTEK From Farm To Fork Standards: Organic. HACCP. WCA. etc. Non-GMO Primary production Processor/ Manufacturer/ Packer BRC-Standards GMP. Organic. GSV Distributor/ Retailers/ Consumer BRC-Packaging Halal. non-GMO. 14001. WCA. GMP/ HACCP “one brand” Certification (Halal) “one brand” certification Supply chain inspections QMS: ISO 9001.

Halal alone is not enough? Waste Pollution Hazardous Material & Waste Management Using the wrong Energy & Global warming Source : Courtesy of INTERTEK .

Knowing your supply chain? Don’t associate your products with this? Source : Courtesy of INTERTEK 8 .

.TIDY UP YOUR SUPPLY CHAIN Associate your products with being Halal and more……. Source : Courtesy of INTERTEK .

Malaysia has the Components of a Complete Halal Ecosystem R&D FIRMS •FOOD & NUTRITION •PHARMACEUTICALS •COSMETICS GOVERNMENT MINISTRY AND AGENCIES ENTREPRENEUR DEVELOPMENT OIC TRADING PACKAGING MATERIALS CONTAINER CLEANING SECURITY SERVICES SUPPLIERS PROCESSING PLANTS DISTRIBUTION CUSTOMERS IMPORTERS HALAL ANIMAL FEED COLD ROOM MAINTENANCE EXPORTERS CERTIFICATION & QUALITY ASSURANCE •JAKIM • MINISTRY OF HEALTH • MARDI •DSM •MOA ISLAMIC BANKING. FINANCE & INSURANCE HALAL KNOWLEDGE CENTRE COMPETENCY BASED TRAINING INNOVATIVE & COMMERSIALISATION PHARMACEUTICALS & COSMETICS AGRICULTURE & ANIMAL HUSBANY ISLAMIC FINANCE FOOD & NUTRITION Source : MDS Logistics .

2005** primary meat and food sectors account for 62% of the market Does not include Islamic Financial Services. certification. R&D are included in sectoral values ** Based on sales revenue *** Halal processed food is taken as 66% of the total based on world Halal meat consumption **** Only non-alcoholic beverages Source: Euromonitor reports. Services involved in final product e. logistics. FAOSTAT .g.Global Market for Halal Products 100% = USD 2.1 Trillion Sales FMCG sector Pharmaceutical 22% • The Halal market has been quantified as the target market that can potentially be captured these Halal-potential products are categorized as fast moving consumer goods (FMCG) 62% Food & Beverages** 6% Nutraceutical • Approximately 67% of 10% Cosmetic & Personal Care • FMCGs in the Global market for Halal-potential products.

Global Halal Market Value .

3 million MT.ASEAN Future World Halal Base ASEAN: POTENTAIL • Many ASEAN countries have low “per capita trade-able food consumption”. increase in intake per-capita to 8 kg/year. Forecast in 7-8 years. Indication: High potential in future demand. chicken meat intake percapita in Indonesia is 4 kg/year. • • . Currently. rise in ‘disposable income’ and increasing awareness on Halal. Halal products to be traded particularly meat and meatproducts will increase ‘exponentially’. With the increase in economy. demand increases for chicken meat to 1.

SPECIALTY PROCESSED FOOD .

2007 SAUDI ARABIA 658 8 311 - FRANCE 4.500 1.886 4.122 NETHERLAND S 1.329 10 % of these market space would constitute US$ 1. USDA reports.Examples of Opportunities in Processed Food Products Consumption of Halal Processed Food in Key Import Locations (US$ Mil) SINGAPORE Confectionary Ready Meals Canned Preserved Food Chilled Processed Food Sauces Dressing and Condiments Total Source: Euromonitor .434 603 396 1.590 3.337 137 198 63 48 54 347 473 559 500 1.201 2.8 billion in potential revenue for the Halal Industry player who chooses to capitalise on it .324 11.

condiments. Asean and GCC Potential of Sales of Processed Food (2010) Sauces. Data Monitor. dressing 12% Ready meals 14% Canned/ preserved food 13% Chilled processed food 22% Frozen processed food 9% Confectionary 30% Source: Eurostat. Euromonitor.Potential Of Halal – Processed Food Products  Based on 6 countries from EU. Industry sources & GFRA Analysis (2008) .

HALAL INGREDIENTS .

2005 . 2005 to 2010 Germany 7% Japan 7% China 10% Rest of the World 43% USA 29% France 4% Source : Euro Monitor and RTS Resources. 2005 Total Market Value US$ 30.4 bil Top 10 growth segments for food ingredients.Global Market for Ingredients by Country.4 billion 100%= USD 30.

and Barry Callebaut.2b in 2010. 2 3 4 5 Specialty ingredient industry dominated by MNCs for example Danisco.g. Core Commodities Flour Cocoa Hydrogenated vegetable fats Foaming agents Anti. Kerry Ingredients.Halal Ingredients 1 A significant portion of the value-add (up to 75%) of FMCG is in ingredients. Consumer goods ingredients – 4 categories Functional ingredients. e. e.aging agents Cholesterol reducing agents Preservatives .caking agents Binding agents Colouring Flavorings Fragrances Anti-bacteria agents Anti. and is expected to rise to USD34. Food additives Active ingredients.g. Potentially halal products become non-halal through the use of non-halal ingredients Global market for ingredients was USD30.3b in 2005.

In markets such as Australia. This will increase the capacity for local companies (such as Flavour Inn Corporation and Green House Ingredients) to innovate and foster collaborations with MNC consumer goods companies . chemicals are generally of animal origin Commercialised by a local company and used in all their chicken based products  Sausages and burgers  There is potential to link to the palm oil plantations sector in Malaysia. UK. lotions and cream Emulsifier Bath shower and shampoos  Mainly available in countries with access to vegetable oils. cosmetics Cheeses Cosmetics  Commercialised by local companies but with limited scale and export quality Not yet commercialised Not yet commercialised   • •    Soap. fortified food and beverage.Opportunities for Palm Oil Potential ingredients from palm oil Functional  Lycopene  Beta Carotene  Tocotrienols Enzymes  Lipase  Coenzymes Q10 Chemicals  Glycerin  Di & Mono Glycerides  Sodium Laureth Sulphate Texturizer  Animal fat replacer Potential use Status of commercialization  Nutriceuticals. and tap on R&D that has already been performed by institutes such as MPOB.

ANIMAL HUSBANDRY .

and the Netherlands. accounting for 65% of the market in 2005 Global poultry export is dominated by Brazil. global exports are dominated by Brazil.S. accounting for 70% of the market in 2005 2 .A.Animal Husbandry 1 For beef. Australia and Argentina. U.

Potential Of Halal – Meat Based Products  Based on 6 countries from EU. Industry sources & GFRA Analysis (2008) . Asean and GCC Potential of Sales of Meat-Based Products (2010 Frozen pizza (meat Frozen processed based) red meat Canned/ preserved 3% 7% meat & meat products 4% Frozen processed poultry 6% Chilled processed meats 80% Source: Eurostat. Euromonitor. Data Monitor.

3 Billion USD$ 25.17 Billion USD$ 0.0 Billion USD$ 0.13 Billion Total Values for Halal New Growth Clusters USD$ 274 .Global Halal Market Opportunities Potential Growth Clusters New Clusters Cosmetic/Personal Care Agriculture Pharmaceutical Islamic Finance Logistic Travel Industry Potential Values for Halal Market (Based on 5% of Global Trade) USD$ 177 Billion USD$ 41.5 Billion USD$ 30.1 Billion .

com .There is a Captive Muslim Market in Germany Muslim constitute 20% of the world population World Muslim Population (Millions) European Muslim Population (Millions) Source : Global Mapping International Source : www.islamicpopulation.

Target Markets for Halal Producers WHERE IS MUSLIM PURCHASING POWER? Largest Muslim Population Largest Muslim % of Total Population Highest Purchasing Power Of Muslim Population WHERE ARE MUSLIM CONSUMERS? Average growth of Muslim Population: 1. A.8% p.T Kearney .56 billion Asia (870 million)Middle East (190 million) Indonesia Pakistan India Bangladesh Turkey Egypt Iran Nigeria China Bahrain Kuwait Saudi Arabia Algeria Iran Oman Turkey Yemen Tunisia Saudi Arabia Turkey Iran Malaysia Qatar Russia France Libya UAE Africa (443 million) Europe (51 million)   Northern Europe (2 million) Western Europe (10 million) Ethiopia Algeria Morocco Sudan Afghanistan Iraq Libya Pakistan UAE Qatar United States Algeria Singapore Indonesia Egypt   Southern Europe (9 million) Eastern Europe (29 million) North America (7 million) South America (3 million) Iraq Egypt The Netherlands Source : Addressing the Muslim Market.a Worldwide Muslim population : 1.

HALAL CERTIFICATION IN MALAYSIA .

Halal Certification in Malaysia Application / Document Approval Premise Inspection / Audit / Lab Monitoring & Enforcement Issuance of Halal Certificate Panel / Appeal Committee .

What does this mean for Halal Suppliers? Need to demonstrate your business credentials Move from thinking To being Halal Certified To act Green To act Socially Responsible To ensure facility Security is in place To ensure Product Safety is in place Supply chain traceability is required Farm to Fork Raw material to final product Source : Courtesy of INTERTEK .

555 (within Malaysia) +603 7965 5400 (outside Malaysia) www. Malaysia. Persiaran Bandar Utama.880 .7965 5500 Hotline : 1800 . Tel : +603 .Halal Industry Development Corporation (HDC) 5.hdcglobal. 47800 Petaling Jaya.02.com . Level 5. KPMG Tower. Selangor Darul Ehsan.7965 5555 Fax : +603 . First Avenue.

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