By Dr. Abdul Wadud Nafis, LC., MEI
I. Introduction
The halal industry has expanded its scope, covering food and beverages, cosmetics, pharmaceuticals, fashion, tourism, and Islamic financial services. According to the State of the Global Islamic Economy 2023-2024 report, the market value of the halal industry is projected to exceed USD 3.2 trillion by 2025.
However, the global halal industry ecosystem faces complex challenges, such as the lack of harmonized international halal standards, limited halal infrastructure, and stiff competition with non-halal products.
II. Strategies for Developing the Global Halal Industry Ecosystem
1. Strengthening Halal Regulations and Standardization
Harmonization of Halal Standards: Differences in halal standards among countries hinder the export of halal products. Organizations such as the International Halal Accreditation Forum (IHAF) play a key role in creating global halal guidelines.
Enhancing Halal Certification: Accessible and reliable certification systems can increase producer participation in the halal ecosystem.
2. Technological Innovation and Digitalization
Blockchain in the Halal Industry: Blockchain technology ensures transparency in the supply chain, from raw materials to finished products.
Digitalization of the Halal Market: E-commerce platforms like HalalTradeZone and Halal Booking provide global market access for halal products.
3. Strengthening International Collaboration
Inter-country Cooperation: For example, strategic collaboration between Indonesia and Malaysia as global halal hubs.
Role of Non-Muslim Countries: Japan and South Korea are developing halal facilities to attract Muslim tourists.
4. Human Resource Development (HRD)
Halal Education and Training: Introducing halal-specific curricula in higher education to produce experts in the halal field.
Enhancing Local Producers’ Competence: Training small and medium enterprises (SMEs) to meet international halal standards.
5. Boosting Research and Innovation
Innovations in Halal Ingredients: Development of alternative halal ingredients, such as plant-based gelatin.
Research Collaboration: Universities and research institutions need to collaborate with industries to produce innovative halal products.
III. Opportunities and Challenges in the Global Halal Industry
1. Opportunities in the Global Halal Industry
Growing Global Muslim Population: With a Muslim population of 1.9 billion, the demand for halal products is rising significantly.
Non-Muslim Consumer Awareness: Halal products are increasingly seen as symbols of quality, cleanliness, and safety by non-Muslim communities.
Diversification of Halal Sectors: Beyond food and beverages, sectors such as pharmaceuticals, cosmetics, and tourism are growing rapidly.
Support from Governments and Private Sectors: Many countries, including the UAE and Indonesia, provide incentives to support the halal industry’s development.
2. Challenges in the Global Halal Industry
Fragmentation of Halal Standards: Variations in standards and certification methods across countries create uncertainty for producers.
Limited Halal Infrastructure: Facilities such as halal slaughterhouses and halal laboratories remain scarce in some countries.
Competition with Non-Halal Products: Halal products often come at higher prices, making them less competitive in certain markets.
Consumer Education and Awareness: Lack of awareness about the importance of halal products among consumers, especially in non-Muslim-majority countries.
IV. Conclusion and Recommendations
1. Conclusion
The global halal industry offers significant opportunities to drive global economic growth. However, building a successful halal industry ecosystem relies on overcoming challenges such as differing halal standards, limited infrastructure, and inadequate consumer education.
2. Recommendations
Harmonizing Halal Standards: Countries should collaborate to develop widely accepted international halal standards.
Innovating Technology and Digitalization: Leveraging technologies like blockchain and e-commerce can enhance efficiency and market reach.
Strengthening Global Collaboration: Cooperation between Muslim and non-Muslim countries is crucial for fostering an inclusive halal ecosystem.
Investing in Education and Research: Prioritize halal education and innovative research to create sustainable solutions.
References
1. Global Islamic Economy Report 2023-2024.
2. International Halal Accreditation Forum (IHAF).
3. Pew Research Center: Global Muslim Population Statistics.
4. World Halal Food Council: Annual Report 2024.
5. Academic articles on blockchain in the halal industry, Journal of Halal Studies.