Soft Launching IHBF June 16, 2011

Auditorium Kementerian Agama RI, Jl. MH. Thamrin No. 6 Jakarta

GROWTH OPPORTUNITIES IN HALAL PRODUCTS

HALAL INDUSTRY

  1. THE CORE RELIGIOUS TEACHINGS OF EARN HALAL.

            EAT HALAL, LIVE HALAL

  1. AS MUSLIMS WE ARE ALLOWED ONLY TO TRADE IN HALAL PRODUCTS/SERVICES
  2. MUSLIMS IN NON-MUSLIM COUNTRIES REQUIRE AUTHENTIC  HALAL PRODUCTS/SERVICES
  3. HALAL PRODUCTS AND SERVICES ARE A QUALITY MARK

HALAL = GMO Free, Alcohol Free
and Irradiation Free

Halal (Islam) = Kosher (Judaism) Arabic for Permissible or Allowed
Opposite is Haram = Not Allowed (drinking alcohol, eating pork, gambling, usury etc)

HOWEVER

Principles of Halal are not restricted to food but touches all matters that relate to life.
Including protecting the environment, humane treatment of animals, ethical business and
fairness in all transactions.

CRUELTY FREE

  1. Islam is a deeply compassionate religion, especially regarding animal welfare . In God’s eyes, animals are equal to humans, and “He communicates with them exactly as He does with humans”.
  2. Numerous verses in the Holy Koran refer to the sanctity of animal life and the equal rights of an animal to have a  peaceful life

“ALL creatures are like a family (Ayal) of God: and He loves the most those who are the most beneficent to His Family.”

  1. Muhammad’s kindness to animals was remarkable for the social  context of his upbringing. The  historian Montgomery Watt cites an instance of Muhammed posting sentries to ensure that a female dog with newborn puppies was not disturbed by his army travelling to Mecca in the year 630.

“There is no man who kills [even] a sparrow or anything smaller…but Allah will question him about it [on the judgment day]” and “Whoever is kind to the creatures of God is kind to him self.”

 CARING ENVIRONMENT

  1. Islam teaches man to not only respect his neighbor but also mother nature
  2. More than 6.000 Quranic verses  refer to  nature  and the relationship between living organisms and their environment
  3. The earth’s natural resources are available for our use, but these gifts come from God with certain ethical restraints imposed on them

 Eat and drink, but not to excess (20:81)

  1. We may use these resources  to meet our need. But only in a way that does not upset ecological balance and does not compromise the ability of future generations to meet their needs

                        - Limit Consumption
                        - Re-use and Recycle

 Reference: www.ifees.org.uk

MARKET RESEARCH
THE GLOBAL HALAL CONSUMER

  • The global Muslim consumer base is estimated to be 1.8 billion spread over 100 countries.
  • Demand for Halal personal care products and pharmaceuticals is driven by increased consumer knowledge of the ingredients used in the formulation of such products and the way they are produced
  • Conscientious  consumers are specifically reaching out for Halal endorsed products and are choosing to spend money on cosmetics and pharmaceuticals to fit in with their religious and cultural requirements
  • Women are the main decision makers for purchasing lifestyle products
  • Typical Halal consumer is an educated middle to high social class female
  • The global market for Halal commodities is currently valued at USD 2 trillion
  • The Halal  cosmetics market is currently worth an estimated  USD 560 million worldwide and growing
  • An estimated USD 150 billion worth of Halal merchandise is distributed through the Emirate each year, with personal care items constituting a large proportion if this figure
  • Halal fashion and cosmetics constitute a market worth Dh 2.06 billion in the UEA alone
  • The UEA is set to capitalize on this booming trend for Halal cosmetics in view of its position as a regional hub for the distribution of Halal commodities
  • Currently the market for beauty and grooming products as a whole in the Middle East is growing at 12% per annum, and is valued at USD 2.1 billion
  • This growth is being mirrored by the demand for Halal Personal care products

Refernce: www.halaljournal.com - www.ameinfo.com

HALAL FUTURE INDUSTRY

  • Cosmetics and Toiletries for women, men and children
  • Hair Dyes
  • Make up, nail varnishes, hair sprays etc
  • Perfumes
  • Personal hygiene products
  • Vitamin Supplements
  • Pharmacy/over the counter products
  • Hand sanitizers
  • Household cleaners and food fresheners

INDUSTRY CHALLENGES

  • Halal is normally associated with meat and other foodstuff and perceived cruelty to animals due to the process of slaughter
  • Non-Muslims may see the Halal logo and think the product is ‘not for them’

Solution = Break down myths and re-define Halal as Eco-Ethical

  • Lack of credible accreditation bodies in the West (bogus certificates can be bought over the internet without audits or checks on ingredients)
  • Some Muslim countries such as Malaysia are  “getting their acts together” but it may be difficult to contact or talk to someone in person due to differing time zones and language barreirs

Solution = Develop a single globally recognized Halal standard

HALAL SUMMARIZING CRITERIA

  • Free from animal flesh (meat, fowl, fish or shellfish), meet or bone stock, animal or carcass fats, gelatine etc.
  • Free from Genetically Modified Organisms (GMOs)
  • Free from Irradiated Raw Materials
  • Free from Aliphatic Alcohols (e.g ethanol, methol, etc)
  • Separation of Halal raw materials and finished products from non-Halal
  • No cross contamination during the production process
  • Can’t use alcohol as a sanitizer for hands or for cleaning equipment
  • Packaging must not contain non-Halal products (e.g animal glue)

FUTURE OUTLOOK

  1. Halal industry is one of the fastest growing markets in the world
  2. Halal certifications can add another USP to your product
  3. It can complement other accreditations to bring your product in line with the trend of eco-ethical lifestyle products
  4. Open up new global markets
  5. However, certification bodies are not globally standardized
  6. Non-Muslim companies may be open to exploitation by bogus ‘Halal certifying’
  7. Malaysian government are tackling this by the introduction of a global Halal certification – JAKIM
  8. But we are a long way off arriving at a global solution
  9. Contact www.halalconsultancy.co.uk or your local Mosque for advice on how to get your product certified.

 

FUTURE IS HALAL INDUSTRY
ISLAMIC FINANCE AND HALAL FOODS ARE TWO DIFFERENT ASPECTS OF
THE SAME PHENOMENON

 

Dr. H Sugiharto
Presidium ICMI

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