The dynamics of the consumer market keep changing over time. The rapid growth of the halal market segment has been one of the most significant developments in recent years. Especially in today’s digital age, it is more important than ever for businesses to understand the importance of catering to over 1.5 billion Muslims worldwide.
Today, we’ll take a deep dive into the dynamics of this market and explore why businesses need to pay attention to market segments. But before that, let’s try to understand what the Halal market represents.
In Islamic principles, Halal means permissible. The term is used to describe products, behaviors, and services that are lawful in Islamic guidelines. The halal title signifies that the product has been produced with certain ethical and moral standards.
Halal products represent a commitment to ethical and spiritual purity. Especially in physical products, the absence of ingredients like pork and alcohol is necessary to get to the halal standard.
The Halal Market Landscape
According to a recent study by Fortune Business Insights, The global halal food and beverages market is projected to grow from $2.09 trillion to $3.2 Trillion by 2028. This staggering growth reflects the massive potential in the market.
Regionally, the market’s size and potential continue to expand in key global markets. Especially regions like the Middle East, Southeast Asia, and North Africa are witnessing a growing demand. These trends reflect the importance of the halal market for businesses seeking growth avenues.
Challenges Faced by Islamic Businesses
Due to the dynamics of the halal market, there are a number of challenges that businesses can face. Here are some of the biggest challenges.
- Halal Certification – It can be difficult for consumers to determine which products are halal. That is why businesses need a credible halal certification to build trust and showcase authenticity.
- Supply Chain Management – When dealing with halal physical products, companies need to adhere to strict ingredient management and sourcing guidelines, which are different from standard supply chains.
- Shariah-Compliant Finance – To operate in halal markets, businesses need to comply with Islamic finance principles. This can be hard to achieve in the modern digital landscape.
Curating Digital Strategies to Address Challenges
Businesses focused on halal products must clearly communicate how they incorporate halal practices through their digital strategy. Here are some ways to do that:
- Halal Certification Transparency – Companies must clearly communicate details about their halal certification and its applicability to build consumer trust.
- Educational Content – You need to educate your customers about halal values and how they relate to your core business offerings.
- Influencer Collaborations – You can collaborate with Muslim influencers to raise awareness about your products and build credibility with your target audience.
To understand the intricacies of the Halal market, you also need to pay attention to the cultural challenges that come along the way. It can be a great idea to work with a team that has experience in this market.
Sunan is the ideal partner to help you navigate the challenges of the Halal market. We’ve worked with hundreds of companies and helped them figure out successful growth strategies in this market segment.
Have any questions about the right business strategy to target the Halal market?
Let us know in the comments, or reach out to us!