INSIGHTS
In Brief
- BrandPartner’s latest research shows that “59.05% of respondents place a high level of importance on halal certification in a brand or product. On the other hand, 29.52% take it for granted, while 11.43% do not care about it at all.“
- The global halal food market is expected to reach $2.55 trillion by 2023, growing at a compound annual growth rate of 6.3%. The Asia-Pacific region is expected to dominate the halal food market, followed by the Middle East and Africa.
- The future of halal certification is not without its challenges. The process of obtaining and maintaining halal certification can be complex and time-consuming. Also, there is a growing concern about the reliability and credibility of halal certifiers.
Halal certification is an important aspect for many Muslim consumers in the world. Halal, meaning “permissible” in Arabic, refers to the dietary laws and guidelines outlined in Islamic teachings.
It ensures that products and services, particularly food items, adhere to these guidelines and are considered acceptable for consumption by the Muslim community.
The halal certification process is a thorough examination of the ingredients, production process, and supply chain of a product.
It is carried out by certified halal organizations or agencies that ensure the product is free from prohibited ingredients. Such as pork and alcohol, and meets the specific criteria outlined in Islamic teachings.
This certification not only meets the religious and dietary needs of Muslim consumers. But also provides them with peace of mind and confidence in the products they consume.
Moreover, halal certification also promotes transparency and ethical business practices, as companies must adhere to strict standards in order to obtain and maintain their certification.
This helps build trust and loyalty with Muslim consumers, and also appeals to a larger audience who value ethical and sustainable products.
Examining the Factors Behind Consumer Choices
The recent survey conducted by BrandPartner found that 59.05% of respondents place a high level of importance on halal certification in a brand or product. On the other hand, 29.52% take it for granted, while 11.43% do not care about it at all.
These results show that halal certification is a major factor for many consumers in the decision-making process.
The process of halal certification ensures that a product or brand complies with Islamic dietary requirements and does not contain any prohibited ingredients. This has become increasingly important for Muslim consumers who observe religious guidelines strictly.
One of the primary reasons why people place a high level of importance on halal certification is due to concerns about health and well-being.
Halal-certified products guarantee that the product is free from alcohol, pork-derived ingredients, and other prohibited substances, providing Muslim consumers peace of mind that the products they consume are safe and meet their religious requirements.
Religion plays a significant role in shaping consumer behavior and decision-making. For many Muslims, following religious guidelines is a central aspect of their daily lives.
By choosing halal-certified products, they are able to align their purchasing decisions with their religious beliefs, which is a crucial factor for them.
In recent years, the global halal market has experienced significant growth, and the demand for halal-certified products continues to rise. As consumers become more conscious of the food they consume, halal certification offers a guarantee of quality and safety that is highly valued.
The Future of the Halal Market and its Impact on Businesses
The halal market is a rapidly growing industry, with a significant demand for halal-certified products.
The growth of the global halal market is due to several factors, including a growing Muslim population, and an increasing awareness of the importance of halal certification. As well as a growing demand for hig-quality, ethically sourced food products.
According to research, the global halal food market is expected to reach $2.55 trillion by 2023, growing at a compound annual growth rate of 6.3%. The Asia-Pacific region is expected to dominate the halal food market, followed by the Middle East and Africa.
The demand for halal-certified products is not limited to the Muslim population, as consumers from various religious backgrounds are increasingly seeking products that meet high ethical and quality standards.
The growth of the halal market has led to an increase in the number of companies seeking halal certification, and the development of new products and services aimed at this market.
The food and beverage industry is the largest contributor to the halal market, with a range of halal-certified products available, including meat, dairy, baked goods, and snacks.
The halal market has also expanded to other industries, including cosmetics, pharmaceuticals, and financial services.
The Take-it-for-Granted Perspective
As we mentioned before, 59.05% of people care a lot about halal certification in a brand or product, while 29.52% take it for granted and 11.43% don’t care.
For those who care a lot about halal certification, it is an essential factor in their purchasing decision. On the other hand, the 29.52% of people who take halal certification for granted may not fully understand its significance or may not place much importance on it in their decision-making.
For these consumers, halal certification may simply be viewed as an added benefit or a factor that is considered, but not necessarily critical in their purchasing decisions.
The 11.43% of people who don’t care about halal certification may not be aware of its meaning or may not place any importance on it in their purchasing decisions.
They may not have a strong connection to the Muslim community or may not be concerned with the religious or ethical aspects of halal certification.
It is important for brands and businesses to understand the different perceptions of halal certification, as this can have a significant impact on their target audience and sales.
By catering to the needs and preferences of consumers who care a lot about halal certification, businesses can attract and retain a loyal customer base. On the other hand, failing to address the needs of this group could result in a loss of sales and reputation.
The Struggles Experienced with Halal Certification
Obtaining and maintaining halal certification is not always an easy task for companies. One of the primary challenges faced by halal-certified companies is the cost of obtaining and maintaining halal certification.
The process of obtaining halal certification is often time-consuming and requires significant resources, including financial, human, and technical resources.
Companies must pay for the services of halal certifying organizations, as well as for any necessary equipment, facilities, and personnel. This can be a significant burden for smaller companies and startups, and it can prevent them from entering the halal market.
Another challenge faced by halal-certified companies is the lack of standardization in the halal certification process. There are many different halal certification organizations, each with its own set of standards and procedures.
This can make it difficult for companies to determine which organization to use, and it can also result in conflicting certifications for the same product. This lack of standardization can also lead to confusion among consumers, who may not be sure which certification to trust.
The complexity of the halal certification process is another major challenge faced by companies. The process involves a detailed analysis of all the ingredients used in a product, as well as the facilities and processes used to produce it.
Companies must also ensure that their products are not contaminated with prohibited substances, which can be difficult to guarantee in a complex supply chain.
Furthermore, companies must also ensure that their products are packaged and stored in accordance with halal standards, which can be challenging in a fast-paced and ever-changing market.
Finally, maintaining halal certification can be difficult for companies as they must continuously monitor their operations and ensure that they remain in compliance with halal standards.
This can be particularly challenging in industries such as the food industry, where products and processes can change frequently.
Companies must also ensure that they remain in good standing with the halal certification organization they are affiliated with, which can be difficult in a highly competitive market.
Opportunities for Businesses to Tap into the Halal Market
As we mentioned above, the growing demand for halal-certified products has driven the growth of the global halal market, which is estimated to reach a value of over $2.55 trillion by 2023.
With the increasing popularity of halal certification, it is important to consider the future of the industry and its impact on both consumers and businesses.
It is predicted that the demand for halal-certified products will continue to rise, driven by the growing Muslim population, increased awareness of halal certification, and the increasing availability of halal products.
This growth in demand for halal-certified products presents a significant opportunity for businesses to tap into the halal market.
Brands that successfully obtain halal certification and effectively market their products as halal-certified can expect to see an increase in sales and brand loyalty among Muslim consumers.
However, the future of halal certification is not without its challenges. The process of obtaining and maintaining halal certification can be complex and time-consuming, and there is a growing concern about the reliability and credibility of halal certifiers.
Brands must ensure that their halal certification process is transparent, credible, and in line with international halal standards to maintain consumer trust and confidence.
Final Thoughts
Halal certification is a crucial aspect of the food industry, particularly for the Muslim community.
Our findings demonstrate the diverse attitudes and perceptions of halal certification among consumers, and the impact it has on their purchasing decisions.
The significance of halal certification for consumers can be attributed to the religious beliefs and practices of the Muslim community, where the consumption of halal food is a fundamental aspect of their daily lives.
For these consumers, halal certification acts as a guarantee of the product’s compliance with Islamic dietary laws. As a result, the demand for halal-certified products has been on the rise globally, with the halal market expected to grow even further in the coming years.
However, brands that aim to obtain halal certification face numerous challenges, from meeting the stringent criteria to ensuring ongoing compliance. Despite these difficulties, obtaining halal certification has become a priority for many companies, as it offers a competitive advantage and appeals to a growing demographic of consumers who value halal-certified products.
Overall, the importance of halal certification for both consumers and businesses cannot be overstated. As the halal market continues to grow, halal certification will play an increasingly crucial role in shaping consumer behavior and determining the success of brands in the halal market.
Brands that prioritize obtaining and maintaining halal certification will be well-positioned to capitalize on the growing demand for halal products and secure their place in the future of the halal market.
