THE RISE OF THE HALAL MARKETTRENDS AND OPPORTUNITIES

Tomás GuerreroManager, Halal Trade and Marketing Centretguerrero@thehtmc.com

REGULATED MARKET

Todo lo que no ha sido prohibido expresamente, está permitido.

Halal representa un estilo de vida, un concepto global e integral

Haram se refiere a todo lo que está prohibido

Prohibido, desautorizado, dañino, no ético o abusivo

Según la normativa islámica, son Haram:

The Halal Concept

Source: Halal Trade and Marketing Centre (2020)

Regulated Market

“Halal” is an Arabic term meaning permissible or lawful as per the Islamic law. The Halal Economy is composed of sectors whose core products and services are structurally affected by Islamic Law, such as Food (that mustbe Halal) Finance (that must be Sharia-compliant) or Fashion (that mustbe modesty).

Halal Legal Framework

Halal Certification Bodies Halal Accreditation Bodies

Source: Halal Trade and Marketing Centre (2020)

Regulated Market

Regulated Market

Source: Halal Trade and Marketing Centre (2020)

HALAL MARKET DRIVERS

Halal Market Drivers

Large, Young and Fast-Growing Population

1.3

1.1

1.6

1.9

30%

2.2

1990 2000 2010 2020F 2030F

Global Muslim Population(Bn)

26.4%

15%

18%

21%

24%

27%

1990 2000 2010 2020F 2030F

Muslims’ World Percentage(%)

Source: Halal Trade and Marketing Centre (2020)

Muslim-Majority Countries are Leading the Economic Growth

Source: Halal Trade and Marketing Centre (2020)

Halal Market Drivers

GDP($US Bn, Constant Prices 2018)

GDP per capita($US Bn, Constant Prices 2018)

Indonesia

Saudi Arabia

Turkey

Iran

UAE

Nigeria

Malaysia

Pakistan

Egypt

Kazakhstan

Qatar

UAE

Kuwait

Brunei

Bahrain

Saudi Arbia

Oman

Kazakhstan

Turkey

Libya

68,793

43,000

33,994

31,628

24,050

23,338

16,415

9,370

9,814

7,241

1,042

771

786

454

414

397

358

314

251

179

Source: World Bank (2019)

Fast-Growing Economies

Halal Market Drivers

Emerging Muslim Middle Classes

Source: Hitting the sweet spot: The growth of the middle class in emerging markets, E&Y (2013)

Halal Market Drivers

THE HALAL MARKET

The Halal Market

The Islamic Economy in Figures (2018)

Food & Beverage

• 1.3 Trillion

Finance

• 2.5 Trillion

Fashion

• 283 Billion

Tourism

• 189 Billion

Media/Recreation

• 220 Billion

Pharmaceuticals

• 92 Billion

Cosmetics

• 64 Billion

Source: State of the Global Islamic Economy Report (2020)

Food & Beverage

• 1.9 Trillion

Finance

• 3.4 Trillion

Fashion

• 402 Billion

Tourism

• 274 Billion

Media/Recreation

• 309 Billion

Pharmaceuticals

• 134 Billion

Cosmetics

• 95 Billion

Source: State of the Global Islamic Economy Report (2020)

The Halal Market

The Islamic Economy in Figures (2024)

THE HALAL F&B MARKET

57 OIC Countriesallocated 1

trillion dollars toconsume Halal certified Food

Global MuslimMarket

17%

Halal Food Market Overview

Expenditure of the Muslim Populationon Food and Beverages ($US Bn,2018)

1.3

Source: State of the Global Islamic Economy Report (2020)

854

771

380341 316

Global MuslimMarket

China USA Japan India Russia

Top MarketIndonesia

173 $US Bn

An Opportunity for Italy

Indonesia is Leading the Halal Products Consumption

Key Consumers of Halal Food Products($US Bn, 2018)

Source: State of the Global Islamic Economy Report (2020)

An Opportunity for Italy

OIC Food Dependency

16

68

3735

92

63

Livestock and Meat Vegetables Processed Foods

Exports Imports

of the world food imports

of the world food exports

OIC Food imports reached191 billion dollars

OIC Food exports reached 124 billion dollars

The trade gap in the food sector was close to 66 billion

dollars

Source: Thomson Reuters Report (2019)

OIC Food Export and Imports ($US Bn, 2017)

An Opportunity for Italy

Main Players

Suppliers Producers

Retailers

Logistics

Regulators

New Halal Brands

Source: State of the Global Islamic Economy Report (2020)

An Opportunity for Italy

THANK YOU

Tomás GuerreroManager, Halal Trade and Marketing Centretguerrero@thehtmc.com