Halal food industry grows as annual revenue hits $2.1tr

Dubai: The increasing demand for halal products from 1.8 billion Muslims around the world as well as some non-Muslims is fuelling the halal food industry to generate $2.1 trillion annually, reports say.

"The growth scope for the halal food industry is huge because increasing oil wealth translates into more meals consumed, even as the cost of food rises," Nordin Abdullah, executive director of Kasehdia, a communications and consultancy company in Malaysia and publishers of The Halal Food Journal, told Gulf News.

He said this will lead to a significant increase in the total value of the industry as well. Additionally, Abdullah says, "more and more input in the industry is coming from non-Muslims who are looking into it because it is a growth industry and capital expenditure on food is increasing."

He said that the non-Muslim population in Europe is declining and Muslim population is growing globally at a fast rate. These add to the halal market .

Trade margin

Though the size of the industry may be increasing, there is still a large margin between global consumption of meat and halal meat trade (meat trade to and from Muslim countries).

Total projected global meat products consumption in 2008 is 151.2 million metric tonnes worth $334.4 billion. The total global trade value of meat products is $37.1 billion and yet, trade within Muslim countries is only 3.3 million metric tonnes or $7 billion, according to The Halal Journal.

The second Halal Expo, a trade event of the global halal industry to take place in November this year in Dubai, will focus on developing standards and modernising the $2.1 trillion industry. Dubai was expected to play a key role in the halal industry due to plans by local companies to develop a credible and professional certification body to monitor and uphold high quality standards according to global industry requirements. The event, expected to attract between 7000 and 8000, visitors will run from November 24 to 26 at the Crowne Plaza Hotel in Dubai.

Six UAE-based companies are expected to take part in the Expo and participate in a Halal Forum, a round-table discussion with leading industry players.