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What is Driving the Evolution of the Halal Market and
How Can the Food Industry Innovate and Leverage the
Trends and Emerging Opportunities of This Segment?

Fi Asia MEGAtrends 2013

RJ. Liow
Founder & CEO of AYS
An Award Winning Manufacturer for Halal Ready to Eat Meals & Marketer of the Region’s Most
Exciting Integrated Halal Ready to Eat Meals System
Key take outs on 4 aspects:

 
1.How are halal food trends evolving following the rising incomes
and growing population of halal consumers that is expected to
account for 30% of the world’s population by 2025?
2.What is the export market potential for the halal food market
and are there emerging segments in this category?
3.How can the halal food industry innovate to meet changing
market demands for greater food variety?
4.How can the integration of the halal food manufacturing industry
and Islamic finance drive the industry further?

 
A glimpse of AYS
Our vision...
“A trusted global halal
compliant products and
services provider, and a
halal business connector”
AYS created a

NEW

category in the
Malaysian F&B
industry:
Sri Kulai’s
BRAND
PROMISES
..

No Added Preservatives
No Added MSG
Biodegradable Packaging
VoteS of
Confidence!

A 1-InnoCert Double A’s
Rating Company
Licensing of Sri Kulai RTE
Station: Low Cost, No kitchens!
www.marketinghalal.com.my

Media coverage:
Print & TV
Speaking engagements :
Entrepreneurship
FMCG industry
International market entry & development
Halal MICE provider

(meeting, incentive, conference, exhibition)
Why participate in the
global halal industry?
In AYS we see Halal beyond religion.
Once one understands Halal Toyyibban (what is
permissible and wholesome), one will realize that
halal as a concept could be appealing to both
Muslims and nonMuslims.
Halal New Economy
Halal Key Drivers of Growth
USD 2.1 trillion

Sizeable and
Sizeable and
growing Muslim
growing Muslim
population
population

Growing
Growing
economic
economic
development in
development in
Muslim countries
Muslim countries

Muslim population worldwide
(2010) = 1.8 billion
Forecasted to grow at twice
the rate by 2030 representing
27% of global population

“Between 1990 and 2010, GDP
per capita for Muslims
worldwide has grown at a
Cumulative Annual Growth
Rate (CAGR) of 6.8% (Global
CAGR: 5.0%).”

Source: Pew Research Centre

Source: United Nation and IMF

Emergence of
Emergence of
potential Halal
potential Halal
markets (China &
markets (China &
India)
India)

“Chinese Halal markets is
worth USD2.1 billion and
growing at 10.0% annually.”

Source: Islamic Association of China
Diverse Sectors In The Halal Industry
Halal is a
VALUE
PROPOSITION
that exist within
key elements of
the supply chain
of the
intersecting
industry sectors
Global Market for Halal Products
100% = USD 2.1Trillion

FMCG sector

• The Halal market has
been quantified as the
target market that can
potentially be captured

• Approximately 67% of

Cosmetic
&
Personal Care

these Halal-potential
products are
categorized as fast
moving consumer
goods (FMCG)

• FMCGs in the primary
Global market for Halal-potential products, 2005**

meat and food sectors
account for 62% of the
market

Does not include Islamic Financial Services. Services involved in final product e.g. certification, logistics, R&D are
included in sectorial 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; FAOSTAT
The Halal Economy:
•Global halal trade: > US$2.1 trillion
•Halal trade: < 10% of global trade
•62% of the halal industry involve food
•Halal food 17% of global food industry
A

BIG opportunity awaiting…

•Many Muslim worldwide do not have
access to halal products
•Halal industry still in infancy
•A Blue Ocean strategy
Halal Food – the universal language
Western
Cuisine
Western
Cuisine

Middle East
Cuisine

Middle East
Cuisine
Indian
Cuisine

Chinese
Cuisine

Indian
Cuisine
Western
Cuisine

Supplying multi-cuisine and staple foods to
Muslim & Non-Muslim globally
The underlying principal for a Muslim
diet food has to be:
•Halal: permissible & Syariah compliant
•Toyyibban: wholesome: healthy, safe,
nutritious, quality
Target Markets for Halal Producers
WHERE IS MUSLIM PURCHASING POWER?

WHERE ARE MUSLIM CONSUMERS?

Largest Muslim
Population

Highest Purchasing
Power Of Muslim
Population

Indonesia

Saudi Arabia

Pakistan

Turkey

India

Iran

Bangladesh

Malaysia

World population (1990 – 2030): Muslim

Turkey

Qatar

versus Non-Muslim

Egypt

Russia

Iran

France

Nigeria

Libya

China

UAE

Ethiopia

United States

Algeria

Algeria

Morocco

Singapore

Sudan

Indonesia

Afghanistan

Egypt

Iraq

The Netherlands

Source : Addressing the Muslim Market, A.T Kearney

Average growth of Muslim Population:
1.8% p.a

Muslim population worldwide (2010)

1.8 billion

Source: Phew Research Centre
Key markets for Halal food:
•Largest population of Muslim are located in Asia, both
majority and non majority Muslim countries – high demand
for halal food
•Markets in North Africa and Middle East – lucrative
•Growth countries: smaller Muslim population but concern
on food quality and safety concerns eg Australia, US and
Europe
Key markets for Halal food:
• Strong potential for halal certified products in
non-majority Muslim markets – for safe and
ethical products
• Europe: driven by France and the UK
• Australia/Oceania region: halal food market
growth of 33% between 2009 and 2010
How can the halal food industry innovate to meet
changing market demands for greater food
variety?
•Large and increase population of Muslims adhering to halal requirements
will fuel global demand for halal products.
•Busier lifestyle and increased incomes: widespread demand for convenience
products that still conform to Islamic dietary laws.
•Ready to eat meal solutions become popular, a growing market for
halal food manufacturers.
•Countries also influenced by global health and wellness trend –
sparked demand for halal health products eg low fat, no MSG
New Potentials of Halal Market
(5%)
What are the reasons for recent growth in
Islamic Finance?
1.Muslims opt for Shariah compliant products that were not
previously available to them
2.Decision to opt for Shariah compliant structured investments
making the conventional financial institutions consider using Islamic
Finance
3.Increasing competitiveness and ethical focus, Islamic products are
attracting both Muslims and non-Muslims
4.Islam as the fastest growing religion in the world, Islamic Finance is
certainly not about to go away any time soon
How Islamic Finance support Halal food
industry?
•Research
•New product development
•Halal parks
•Working capital
Export by Malaysian Halal Certified Companies 2010 vs. 2011
RM billion

700 exporters (75% are SMEs)

Note:
Excluding
crude palm oil

Exports by Halal Certified companies contributed to 5.1% of overall exports for the period between Jan – Dec 2011

Period
2010
2011

Total Exports-Halal
(RM bil)
23.1
35.4

Overall Exports
(RM bil)
638.8
694.5

Contribution
(Halal)
3.6%
5.1%

Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
Export by Malaysian Halal Certified Companies
Products and export destinations: Industrial
Chemical
5.8%

Cosmetic &
P.Care
5.1%

Palm Oil
Derivatives
19.8%

Pharmaceuti
cal
0.8%

Ingredient
34.8%

Food &
Beverage
33.7%

Export Value 2011
Ingredient

RM 12.31 bil

Food & Beverage

RM 11.92 bil

Palm Oil Derivatives

RM 7.00 bil

Industrial Chemical

RM 2.06 bil

Cosmetic & P.Care

RM 1.81 bil

Pharmaceutical

RM 0.29 bil

Source: HDC, Department of Statistic, JAKIM, Custom
Department & MATRADE (Jawatankuasa Penyusunan Statistik
Produk Halal)
For more information on AYS
and speaking engagement:
www.ays.com.my
www.goinginternational.com.my
Tel: +60-3-6272 1707 or info@ays.com.my

32

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Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS

  • 1. What is Driving the Evolution of the Halal Market and How Can the Food Industry Innovate and Leverage the Trends and Emerging Opportunities of This Segment? Fi Asia MEGAtrends 2013 RJ. Liow Founder & CEO of AYS An Award Winning Manufacturer for Halal Ready to Eat Meals & Marketer of the Region’s Most Exciting Integrated Halal Ready to Eat Meals System
  • 2. Key take outs on 4 aspects:   1.How are halal food trends evolving following the rising incomes and growing population of halal consumers that is expected to account for 30% of the world’s population by 2025? 2.What is the export market potential for the halal food market and are there emerging segments in this category? 3.How can the halal food industry innovate to meet changing market demands for greater food variety? 4.How can the integration of the halal food manufacturing industry and Islamic finance drive the industry further?  
  • 4. Our vision... “A trusted global halal compliant products and services provider, and a halal business connector”
  • 5. AYS created a NEW category in the Malaysian F&B industry:
  • 6. Sri Kulai’s BRAND PROMISES .. No Added Preservatives No Added MSG Biodegradable Packaging
  • 7. VoteS of Confidence! A 1-InnoCert Double A’s Rating Company
  • 8. Licensing of Sri Kulai RTE Station: Low Cost, No kitchens!
  • 9.
  • 11. Speaking engagements : Entrepreneurship FMCG industry International market entry & development
  • 12. Halal MICE provider (meeting, incentive, conference, exhibition)
  • 13. Why participate in the global halal industry?
  • 14. In AYS we see Halal beyond religion. Once one understands Halal Toyyibban (what is permissible and wholesome), one will realize that halal as a concept could be appealing to both Muslims and nonMuslims.
  • 16. Halal Key Drivers of Growth USD 2.1 trillion Sizeable and Sizeable and growing Muslim growing Muslim population population Growing Growing economic economic development in development in Muslim countries Muslim countries Muslim population worldwide (2010) = 1.8 billion Forecasted to grow at twice the rate by 2030 representing 27% of global population “Between 1990 and 2010, GDP per capita for Muslims worldwide has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8% (Global CAGR: 5.0%).” Source: Pew Research Centre Source: United Nation and IMF Emergence of Emergence of potential Halal potential Halal markets (China & markets (China & India) India) “Chinese Halal markets is worth USD2.1 billion and growing at 10.0% annually.” Source: Islamic Association of China
  • 17. Diverse Sectors In The Halal Industry Halal is a VALUE PROPOSITION that exist within key elements of the supply chain of the intersecting industry sectors
  • 18. Global Market for Halal Products 100% = USD 2.1Trillion FMCG sector • The Halal market has been quantified as the target market that can potentially be captured • Approximately 67% of Cosmetic & Personal Care these Halal-potential products are categorized as fast moving consumer goods (FMCG) • FMCGs in the primary Global market for Halal-potential products, 2005** meat and food sectors account for 62% of the market Does not include Islamic Financial Services. Services involved in final product e.g. certification, logistics, R&D are included in sectorial 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; FAOSTAT
  • 19. The Halal Economy: •Global halal trade: > US$2.1 trillion •Halal trade: < 10% of global trade •62% of the halal industry involve food •Halal food 17% of global food industry
  • 20. A BIG opportunity awaiting… •Many Muslim worldwide do not have access to halal products •Halal industry still in infancy •A Blue Ocean strategy
  • 21. Halal Food – the universal language Western Cuisine Western Cuisine Middle East Cuisine Middle East Cuisine Indian Cuisine Chinese Cuisine Indian Cuisine Western Cuisine Supplying multi-cuisine and staple foods to Muslim & Non-Muslim globally
  • 22. The underlying principal for a Muslim diet food has to be: •Halal: permissible & Syariah compliant •Toyyibban: wholesome: healthy, safe, nutritious, quality
  • 23. Target Markets for Halal Producers WHERE IS MUSLIM PURCHASING POWER? WHERE ARE MUSLIM CONSUMERS? Largest Muslim Population Highest Purchasing Power Of Muslim Population Indonesia Saudi Arabia Pakistan Turkey India Iran Bangladesh Malaysia World population (1990 – 2030): Muslim Turkey Qatar versus Non-Muslim Egypt Russia Iran France Nigeria Libya China UAE Ethiopia United States Algeria Algeria Morocco Singapore Sudan Indonesia Afghanistan Egypt Iraq The Netherlands Source : Addressing the Muslim Market, A.T Kearney Average growth of Muslim Population: 1.8% p.a Muslim population worldwide (2010) 1.8 billion Source: Phew Research Centre
  • 24. Key markets for Halal food: •Largest population of Muslim are located in Asia, both majority and non majority Muslim countries – high demand for halal food •Markets in North Africa and Middle East – lucrative •Growth countries: smaller Muslim population but concern on food quality and safety concerns eg Australia, US and Europe
  • 25. Key markets for Halal food: • Strong potential for halal certified products in non-majority Muslim markets – for safe and ethical products • Europe: driven by France and the UK • Australia/Oceania region: halal food market growth of 33% between 2009 and 2010
  • 26. How can the halal food industry innovate to meet changing market demands for greater food variety? •Large and increase population of Muslims adhering to halal requirements will fuel global demand for halal products. •Busier lifestyle and increased incomes: widespread demand for convenience products that still conform to Islamic dietary laws. •Ready to eat meal solutions become popular, a growing market for halal food manufacturers. •Countries also influenced by global health and wellness trend – sparked demand for halal health products eg low fat, no MSG
  • 27. New Potentials of Halal Market (5%)
  • 28. What are the reasons for recent growth in Islamic Finance? 1.Muslims opt for Shariah compliant products that were not previously available to them 2.Decision to opt for Shariah compliant structured investments making the conventional financial institutions consider using Islamic Finance 3.Increasing competitiveness and ethical focus, Islamic products are attracting both Muslims and non-Muslims 4.Islam as the fastest growing religion in the world, Islamic Finance is certainly not about to go away any time soon
  • 29. How Islamic Finance support Halal food industry? •Research •New product development •Halal parks •Working capital
  • 30. Export by Malaysian Halal Certified Companies 2010 vs. 2011 RM billion 700 exporters (75% are SMEs) Note: Excluding crude palm oil Exports by Halal Certified companies contributed to 5.1% of overall exports for the period between Jan – Dec 2011 Period 2010 2011 Total Exports-Halal (RM bil) 23.1 35.4 Overall Exports (RM bil) 638.8 694.5 Contribution (Halal) 3.6% 5.1% Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
  • 31. Export by Malaysian Halal Certified Companies Products and export destinations: Industrial Chemical 5.8% Cosmetic & P.Care 5.1% Palm Oil Derivatives 19.8% Pharmaceuti cal 0.8% Ingredient 34.8% Food & Beverage 33.7% Export Value 2011 Ingredient RM 12.31 bil Food & Beverage RM 11.92 bil Palm Oil Derivatives RM 7.00 bil Industrial Chemical RM 2.06 bil Cosmetic & P.Care RM 1.81 bil Pharmaceutical RM 0.29 bil Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
  • 32. For more information on AYS and speaking engagement: www.ays.com.my www.goinginternational.com.my Tel: +60-3-6272 1707 or info@ays.com.my 32

Notas del editor

  1. The global Halal business is expected to grow in tandem with the following key drivers: Firstly, the sizeable Muslim population and increasing population growth; - There are more than 1.8 billion Muslim population worldwide. - By 2030, it is forecasted that the Muslim population will grow at twice the rate and representing more than one quarter of the global population. Secondly, the growing economic development in Muslim countries; - Growing economic development in Muslim countries has seen the Muslim purchasing power catching up with their non-Muslim counterparts. - Between 1990 and 2010, Muslim GDP per capita worldwide has grown at a Cumulative Annual Growth Rate of 6.8% as compared to the global GDP per capita which is only at a CAGR of 5.0%. Last but not least, the emergence of potential Halal markets, most notably India and China with huge Muslims population. - According to the Islamic Association of China, the Chinese Halal markets is worth USD2.1 billion and growing at 10% annually
  2. Total export excluding CPO in 2011 is RM35.4billion which is 5.1% of the overall Malaysia export of RM694billion.
  3. The major export destinations were China (RM 4.1 billion), USA (RM 3.3 billion) and Singapore (RM 2.9 billion). The main halal products exported were Halal ingredients totaling RM12 billion followed by Food and Beverage (RM 11.9 billion) and Palm Oil derivatives (oleo chemicals) RM 7 billion.