Halal Industry in OIC Member Countries: Challenges and Prospects
Date : 07 January 2022

SESRIC has released the report on “Halal Industry in OIC Member Countries: Challenges and Prospects” which presents a comprehensive analysis of the state of the Halal industry in OIC member countries as well as identifies major challenges and prospects in order to draw the attention of policymakers.

The report provides a detailed analysis of four major sub-sectors of the Halal industry including food, tourism, finance, and lifestyle markets. It further highlights selected measures and policies adopted by the OIC member countries and relevant OIC institutions towards providing a more enabling environment for the development of the Halal industry and concludes with a number of policy recommendations presented at both the national and OIC cooperation levels.

Increased global awareness on issues like ‘sustainability, ‘ethical consumption’, ‘green growth’ and ‘digitisation’ helped the Halal industry to flourish in recent years both in OIC countries and around the globe. Consequently, the global market value of the Halal industry climbed up from USD 3.2 trillion in 2014 to USD 4.9 trillion in 2019. Due to the COVID-19 pandemic, the industry witnessed a decline in its market size like many other economic sectors and it was estimated at USD 4.7 trillion in 2020. With an expected positive momentum in the post-pandemic period, it is estimated that the market size will reach USD 6.0 trillion mark in 2024. In the OIC group, the estimated market size of the Halal industry was measured at USD 3.7 trillion in 2020 and projected to reach USD 4.7 trillion in 2024. OIC countries particularly located in the Gulf Cooperation Council region and South East Asia represented relatively higher shares given their income levels, existing strong Halal ecosystem, and high consumer awareness of Halal.

Globally, the Islamic finance sector represented the highest share in the Halal industry with a share of 60.8% in 2020. It was followed by the Halal food sector (24.6%), Islamic lifestyle sector (13.4%), and Islamic tourism (1.2%) in the same year. A similar picture also exists in the OIC group regarding the relative shares of the Halal sectors that Islamic finance sector got a lion’s share in the industry considering the substantial amount of Islamic financial assets and emerging instruments like green-Sukuk.

Many OIC member countries have already acknowledged the importance of the Halal industry not only due to its economic importance but also its potential catalyst role for socio-economic development. Yet, OIC member countries need to address a set of challenges ranging from Halal standardization to Halal certification in order to fully reap the benefits from the rapid growth momentum of the industry especially in the post-pandemic period. In particular, a number of emerging trends like digitalization and innovations in the Halal industry could help restore the confidence of stakeholders and foster growth in the industry beyond the pandemic.

Online Electronic Version

  • Halal Industry in OIC Member Countries: Challenges and Prospects (English)