Muslim consumers spend more on food and beverages

Muslim consumers spent $1.17 trillion on food and beverage last year and ranked first worldwide ahead of China ($854 billion), the United Sates ($771 billion), Japan ($380 billion), and India ($341 billion) as the demand for halal food is increasing.
According to a report by Thomson Reuters, 'State of the Global Islamic Economy Report 2016-2017', Muslims spending on food and beverages in 2015 represents 17 per cent of the global market spend of $7 trillion. Muslim spending on food and beverage is expected to reach $1.9 trillion by 2021, a CAGR of nine per cent from 2015, the report further estimates.
Mohammed Saleh Badri, secretary-general of International Halal Accreditation Forum (IHAF), noted that the halal food sector is growing at a remarkable pace. The high demand for halal food highlights the need for the standardisation of the sector and this was highlighted at the recent Global Islamic Economy Summit.
"The Halal food industry has made vast strides in recent years as consumers become more inquisitive about where their food is sourced from. Greater coordination and standardisation globally about what constitutes Halal food is a barrier that can, and needs to be addressed in the coming years to ensure that the sector's full potential is achieved," Badri said.
With an estimated global Muslim population of 2.8 billion by 2050 and an ever growing number of non-Muslim population keen in consuming Halal food, the industry is set to reap the benefits given the right drivers are in place as the IHAF pushes the halal standardisation agenda forward.
"A single set of standards and logo would be essential to fuel this growth. We all want to make sure that whoever certifies halal food is doing it properly and is contributing to fair competition," Badri added.
The Thomson Reuters report also highlights the rise in halal online meal takeout and delivery platforms. Given the immense potential of this sector, several notable private equity investments were made last year, signaling increasing investor appetite for halal food investments.
There are several factors, however, that are hampering the sector in realising its full potential. One major barrier is the lack of standardisation in the global Halal industry. The World Trade Organisation sees the proliferation of halal marks from various countries as a trade barrier. Because there is no standardised set of requirements, business players have to fulfil long and complicated list of requirements resulting to hefty price tags of Halal products and confusion in the market.
IHAF is working towards creating a common platform wherein governments can discuss halal standards, policies and regulation, and come up with mutual agreements. It is currently working with the 10 founding members that include Dubai Municipality (Dubai Accreditation Centre), Emirates Authority for Standardisation and Metrology (Emirates National Accreditation System), American Association for Laboratory Accreditation, Pakistan National Accreditation Council, Entidad Nacional de Acreditacion (Spain), GCC Accreditation Centre, Saudi Accreditation Committee, United Kingdom Accreditation Service, Joint Accreditation System of Australia and New Zealand, and National Council for Accreditation Egypt.

• UAE