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Chapter 2 – THE HALAL SECTOR
Sugar, confectionery and cocoa Global trade in these halal products reached US$ 93 billion in 2014, an increase of 111% over the decade. Leading exporters include Brazil (US$ 9.9 billion), Germany (US$ 8.1 billion), Netherlands (US$ 6.5 billion), Côte d’Ivoire (US$ 5.3 billion), Belgium (US$ 4.8 billion), United States (US$ 4.3 billion), France (US$ 4.1 billion), Ghana (US$ 3 billion), Thailand (US$ 3 billion) and Mexico (US$ 2.3 billion).
Major importing countries for these products in 2014 were the United States (US$ 9 billion), Germany (US$ 6.7 billion), Netherlands (US$ 4.9 billion), United Kingdom (US$ 4.7 billion), France (US$ 4.6 billion), Belgium (US$ 3.6 billion), Italy (US$ 2.6 billion), China (US$ 2.6 billion), Canada (US$ 2.6 billion) and Malaysia (US$ 2.4 billion). Countries with above-average growth rates for these imports over the past decade are China at 323% and Malaysia at 215%.
Both Ghana and Thailand showed above-average growth rates over the decade with increases of 245% and 236%, respectively. Figure 6: SWOT analysis
Strengths
Weaknesses
• Increasing global awareness of potential of the halal market by governments, corporations and financial institutions • Recognition of halal as genuine engine of economic growth • Continued strong growth across all halal market sectors • Halal industry initiatives across MENA region strengthen the market • Appearance of reliable trade and research data • Synergy between various sub-sectors, e.g. food, travel, digital • Young entrepreneurs and start-ups entering halal sectors • More countries developing national halal campaigns • Halal foods playing a more prominent role in global sporting events, e.g. the Olympics
• Lack of clear leadership to coordinate regional initiatives • Confusion over differences in standards • No viable accreditation scheme to regulate halal certification bodies (HCBs) • Conflicts of interest among HCBs • Evident fraud and rumours undermine market integrity • Lack of funding for start-ups and SMEs • Insufficient awareness among financial institutions • Regional competition hinders mutual recognition initiatives • Negative reports of animal welfare issues • Insufficient training and human resource development programmes • Halal as non-tariff barrier hinders trade • Weakness among many Organisation of Islamic Cooperation member states • Unclear or opaque labelling issues
Opportunities
Threats
• Creation of a viable global regulatory framework • Investment opportunities in niche food and personal care markets • Global promotional campaign to increase halal awareness • Marketing based on ‘tayyib’ and eco-ethical values • Increase use of effective social media campaigns • Acquisitions to gain market share or create global halal brand • Vertical integration to ensure halal compliant supply chain • More focused scientific research on the benefits of halal foods • Accessing global markets via online platforms • Providing accurate and well-researched market data • Incubation of SMEs and start-ups • Crowdfunding and other alternative investment platforms
• War, violence and social upheaval in the Middle East • Acts of terrorism fuel Islamophobia in the West • Opposition from vocal animal welfare groups, especially against live animal exports and unstunned slaughter • Non-Muslim consumer opposition to unlabelled halal food • Banning unstunned slaughter, e.g. in Denmark • Scandals caused by poor management and operational methods • Fake halal logos on non-halal products • Proliferation of online videos highlighting bad practices