Global halal market expected to hit $7 trillion in three years
an increase in the number of migration connected with wars in Muslim countries, the global halal market is expected to reach $7 trillion in three years’ time, a study carried out by the Organisation of Islamic Cooperation (OIC) revealed.
THE global halal market, which has a current volume of over $4 trillion and grows every year, is expected to reach $7 trillion in three years. According to a study carried out by the Organisation of Islamic Cooperation (OIC), in addition to the increase in halal awareness, migration affiliated with wars in Muslim countries is also expanding the halal market. The report also suggests that the demand for halal has increased in non-Muslim countries with the intent of responding to the halal demand of the Muslims bringing their culture to places they visit, stressing that the migration has also spread the popularity of Islam in this regard.
Drawing attention to annual market growth, Yunus Ete, the chairman of Discover Events, the organizer of the World Halal Summit, said many countries have increased investments in this area, adding that a race has begun to have a say in the market. “Halal certificates are issued by many institutions and organizations. Just about everyone has different criteria,” Ete said. “A supervisory body was required to monitor the issuing institutions. The Halal Accreditation Agency (HAK), which was established under the leadership of the Organisation of Islamic Cooperation, has positioned Turkey one step ahead.”
Giving information about the world halal market, Ete said according to 2015 figures, the Islamic finance sector alone is around $2 trillion, while it is expected to raise its total global projected assets to $3.5 trillion by 2021.
“The food and beverage sector, which constitutes $1.17 trillion of the aforementioned volume in the Islamic economy according to the 2015 figures, is expected to exceed $1.9 trillion in 2021,” Ete added, explaining that conservative clothing earns $243 billion, followed by media and communications with $189 billion, tourism and travel with $151 billion, and the pharma- ceutical and cosmetics sector with $133 billion. “Considering the growth of other important sectors that constitute the Islamic economy worldwide, it is estimated that the halal economy will reach a total of $7 trillion in 2021,” he concluded.
Ete also revealed some details about the World Halal Summit 2018 and the accompanying 6th OIC Halal Expo to be organized by the Standards and Metrology Institute for the Islamic Countries (SMIIC), the Islamic Center for Development of Trade (ICDT) and Discover Events under the auspices of the presidency and in collaboration with Turkuvaz Media as the main media sponsor at Istanbul’s Yenikapı Eurasia Performing Arts Center between Nov. 29-Dec. 2, 2018.
Ete stated that world-famous artist Yusuf Islam will deliver the keynote speech for the summit, informing the media that the four-day summit, where over 100 international speakers will attend, will feature sessions on 11 different topics relating to halal, covering a wide range of sectors from tourism to finance, and chemistry to the packaging industry.
Ete noted that the number of participating countries increases day by day in the OIC Halal Expo, which will be attended by representatives from more than 80 countries including Spain, Belgium, the Netherlands, Austria, France, Britain, Thailand and Indonesia, underlining that foreign participants correspond to 40 percent of the total number of guests.
Ete said they will also organize a professional business-to-business program in cooperation with the Trade Ministry, as well as the leading retail associations in Turkey. “Within the scope of the fair, we expect more than 40,000 local and foreign visitors. With the program, we will lead the commercial cooperation between professional purchasers and participants from all over the world, making significant contributions to the sector. We believe Turkey is capable of being a world halal hub,” he continued.