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The Global Market Potential of Halal

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					             International Conference & Expo on Halal Industry
                              Lahore, Pakistan


                                                        Presented at
Presented by: Abdul Malik Kassim                        Halal Research Council Conference
State Minister for Religious Affairs,                   www.halalrc.org
Domestic Trade And Consumer Affairs, Penang, Malaysia   Held at Expo Centre, Lahore - Pakistan
   World Muslim population of 1.83 billion in 2009 out of 6.5
    billion World population

   With average annual growth rate of about 1.80% per annum.
     approximately 117,000,000 per yr. increase which does not
    include conversion which on the rise currently.

   Global Halal products market is estimated at US$2.3 trillion
    excluding Islamic banking. * F&B (67%), pharmaceutical ( 22%),
    personal care & cosmetics ( 10%)


   If we include service sectors for the Halal market, the
    potential size of total market is ASTRONOMICAL…
   The trade in Halal food is enormous with est. annual halal
    food value at US $347 billion globally
   HALAL – lucrative market and huge opportunities.

   Awareness and interest in Halal products has increase
    tremendously among Muslim and Non-Muslims as well.
   Huge purchasing power among Non-Muslim countries.

   Consumer’s views on Halal products are not only confined to
    religious viewpoint but the CONFIDENCE that comes with
    the Halal Branding.
   Halal : HEALTHY, WHOLESOME & HYGIENE
PEW Research Centre’s Forum on Religion & Public Life.Mapping the Muslim
Population. October 2009
 MUSLIM POPULATIONS BY REGION
                     Estimated 2009      Percentage of         Percentage of
                    Muslim Population   Population that is   Population Muslim
                                            Muslim
Asia-Pacific         972,537,000              24.1                61.9%
Middle East-North    315,322,000              91.2                 20.1
Africa
Sub-Saharan          240,632,000              30.1                 15.3
Africa
Europe                38,112,000               5.2                 2.4
Americas               4,596,000               0.5                 0.3
World Total         1,571,198,000             22.9                100.0
   Key Halal Market
   Algeria        Bahrain        Egypt      Indonesia        Iran
   Iraq           Jordan         Kuwait     Lebanon         Malaysia
   Morocco        Oman           Qatar    Saudi Arabia      Syria
   Tunisia        Turkey         UAE         Yemen          Pakistan

   Combined population of key Halal markets : 652 Million
   Key Halal Markets in Non-Muslim countries
   India           140million             France         6 million
   China           40 million             Germany        3 million
   USA              8 million             UK             1.5 million
   Phillippines      6 million            Canada           800,000
   Asia

    Malaysia
   Country with a majority Muslim population (60.4% Muslim of a total
    population of 27 million )          ( Source: Department of Statistics 2008)


   Becoming an international halal hub
   Malaysia is well-positioned in being the leader in developing the
    Halal industry.
   In the midst of helping out to set global standards for Halal
    certifications.
   Best example in the world in terms of rationalization for the labeling
    of Halal food (source: UN)
   M’sia’s active role in the OIC and position as the home of the Islamic
    Financial Services Board (IFSB) enhance M’sia as the market
    leader in the provisioning of halal products and services throughout
    the world.

   Thailand, known as World’s Halal Kitchen, is currently the fifth
    largest halal food exporter and recognized as Halal centre of
    excellence in science and testing.

   Even Muslim minority countries in Singapore have shown that the
    halal food business is good business.

   The Muslim community forms only 16% of the 3.8 million population
    in Singapore, the halal food industry is big business in this
    cosmopolitan city. Mc Donald’s, A&W, KFC and Taco Bell are
    some international brands that have gone 100% halal in Singapore.
   Brunei is currenly co-operating with Australian companies in order to
    combine its role in the Muslim world with Australia’s track record in safe,
    high quality food production.


   China is one of the world's most eye-catching halal food markets, as
    Muslims there total more than 30 million, or 2.3% of China's population

   Growing demand for halal food - Ningxia and Gansu provinces and in
    Inner Mongolia

   The key advantage of the Chinese Halal industry is access to cheap labor.
   Europe

   Largest Muslim population after Asia and Africa

   The market size of halal food in Europe ~15 billion Euro this year
    (est)

   Has high purchasing power, rather than population size.Therefore,
    the European Halal market carries a lot of potential for good
    exporters.

   51.2 billion Muslim population in 2009 with France having the
    largest Muslim population ~5.86 million
•   The European Supermarkets are now aggressively pursuing the
    Halal food retailing.

•   The port of Rotterdam is currently creating a “Halal DistriPark “ to
    serve 30 Million Muslims in Europe.

•   The proposed £150m Super Halal Industrial Park (SHIP) at South
    Wales , would make UK the landmark Halal centre for the region.
    United States
     According to the Islamic Food and Nutrition Council of America, the
     U.S. halal market is estimated at $17.6 billion


    The top 10 major halal food markets are:
1.       New York City, New Jersey and Long Island metropolitan areas
2.       Los Angeles                      9. Atlanta
3.       Chicago                          10. Washington D.C
4.       Detroit
5.       Houston
6.       Dallas/Forth Worth
7.       South Florida
8.       San Francisco
   Africa
   South Africa, also known as the “rainbow nation” due to its diverse
    population, has also been actively hosting events focussing on Halal
    as a viable business concept.

   With a Muslim population of approximately 1 million, South Africa is
    playing a major role in developing the regional Halal industry in
    Africa and is constantly seen as the gateway to the immense African
    market.

   Middle East
   Net importers of processed food both for the food service and retail
    markets.

   Members of the Cooperation Council for the Arab States of the Gulf
    (GCC)
   Have higher incomes and consequently higher per capita rates of
    consumption.Therefore, the region must import 80% of its food
    requirements.

   Saudi Arabia and the UAE ~ most important import markets in the
    region. Currently Brazil is the largest exporter to the two countries
    followed by the EU and the US.

   Saudi Arabian companies involved in the Halal industry include Al-
    Radwa Farms, Al- Watania, Supreme Foods, Nash Meat and
    Sunbullah. UAE companies involved in the Halal industry include Al-
    Islami Foods, Al-Babeer, Al-Areesh, Arctic Gold, Royal Meat and
    Emirates Meat.

   Turkey is a growing Halal market and as a potential supplier of Halal
    products, particularly to EU counties with large Muslim populations
    such France and Germany.
   Nestle – world’s largest food manufacturing corporation
   McDonalds – the world’s largest leading restaurant chain
   KFC – fully integrated poultry chain
   Tesco & Carrefour – world’s number one & two retail chain
   Port Rotterdam – Europe’s largest & the world’s 3rd largest port
   Westports – one of SEA top 10 ports
   MISC – the world second biggest shipping company
   CIMB – SEA biggest investment bank
   Allanasons – India’s biggest meat exporter
   Al-Islami – UAE halal food produces
“It has been assumed that the trouble soon to be
 faced by the Halal market is shortages of
 demand, but contrary to prior believes, the
 shortage is on the supply, not the demand”
PENANG
INTERNATIONAL
HALAL
HUB (PIHH)
PIHH VISION
                                                  Kuala Muda



                                                            Kepala
                                                            Batas
                                                                                                LOCATION of choice for
   Telok
              Bt.
              Feringghi Tg. Bungah
                                Tg. Tokong                                                       Halal investments,
  Bahang



 Sg. Pinang       Ayer Itam     Jelutong
                                             G’town
                                                                                                 businesses and industries
                                            B’worth            Seberang


                                                                                                DESTINATION of choice for
                                                                 Jaya
                              Gelugor                                         Bukit
                Balik                                                       Mertajam
               Pulau
                          Sg.
                         Nibon
                   Bayan


     Pulau
    Betong
                   Baru
                 Bayan
                 Lepas
                           g
                                         Pulau
                                        Jerejak     Pulau
                                                                                                 Halal/family-concept tourism
                                                   Gedong                          Simpat
                                 Batu                                              Ampat
                                Maung              Pulau


                                                                                                RESIDENCE of choice for
                                                   Aman

                                                                                      Sungai
                                                                                      Bakap


                                                                          Nibong
                                                                          Tebal
                                                                                                 Halal/Family-concept lifestyle
                                                                                                 and sustainable living


                                                      The whole Penang State is the Halal Hub!
CLUSTERS @PIHH
          INDUSTRIES
                            R&D
          (Manufacturing)

      AGRO-BASED               FINANCE


    LOGISTICS                     HUMAN
                                  CAPITAL
      LIFE SCIENCES
      (Bio-tech/ Medical/      MARKETING
      Wellness)

          HOSPITALITY &      SUPPORT
          TOURISM            SERVICES

                            Holistic supply chain
CLUSTERS @PIHH
          INDUSTRIES
                                                      LOGISTICS
          (Manufacturing)
INDUSTRIAL PARKS                            LOGISTIC HUB
 Ready Halal Park for investors             Penang Port – Halal Status
 World-class Manufacturing                  Halal warehouse and cold chain facilities
 One-stop investor facilitation services    Extensive ground infra
 Availability of Incubators/ Test Labs /       •Southern Thailand >Penang < Singapore
  Shared Services                               •North Sumatera-Penang
Strong supply chain and support services


                     CERTIFICATION

                      HALAL Malaysia Certification
                      HALAL Malaysia Accreditation
                     Global standards (MS 1500, HACCP, GMP, BIHAPS, HAL-Q)
             INDUSTRIAL PARK

   Penang International Halal Park @ Penang Science Park
   Focusing on attracting investments of strategic, niche and high technology
    industries from F&B, ingredients (i.e additives, enhancer) personal care and
    cosmetics to be located in the park
   With ready land available, and a dedicated agency (Halal Penang) to promote the
    parks, Penang has attracted investments from China, Iran, and India to set up
    business at the halal park.

    SHIP ( Super Halal Industrial Park Ltd)
   Partnered with a venture-capital firm in UK to set up European’s first industrial park
    for Islamic goods.
   The proposed £150m SHIP would provide services such as storage, product packing,
    meat selection and processing as well as R &D.
    Halal Penang will provide advisory and development support throughout the project
    Other Halal Industrial Parks
   Form partnerships with representatives from Yemen, Medan, Indonesia and Pakistan
    in providing consultancy and other supporting services to develop halal industrial
    parks in respective countries
               INDUSTRIES (Manufacturing)


   Gelatine
   Untapped Halal market potential
   Only 0.7% of the gelatine produced in the world is deemed Halal

   Commonly used as a gelling agent in a wide variety of industries including food,
    pharmaceuticals, photography, paper and fertilizers as well as elastic and adhesive
    materials.

   About 42.4% of the world production of gelatine use pig skin, another 29.3% use
    bovine hides while bones constitute 27.65% as its source material.
   Penang is looking for partners to invest in the gelatin production, which is considered
    critical and strategic project.




                                                                    Source : halalgel.com
                 INDUSTRIES (Manufacturing)



      Food additives and Food Enhancer

      Food additives are defined by the European Community (EC) is “any substance
       which are not normally consumed as food in itself and not normally used as a
       characteristic ingredient of food whether or not it has nutritive value, in the
       manufacture, processing, preparation, treatment, packaging, transport or storage of
       such food results, or may be reasonably expected to result, in it or its by-products
       becoming directly or indirectly a component of such foods".

      Categories includes :                        Common additives:
i.      emulsifiers,                                i. salt
ii.     thickeners,                                 ii.sugar
iii.    anti-oxidants                               iii. vitamin
iv.     Colouring                                   iv. starches etc
v.      flavour enhancer etc.
             INDUSTRIES (Manufacturing)


   FOOD ADDITIVES’ ECC-CODES (E-CODES)

   E-numbers represent specific food additives, used by the food industry in
    the manufacture of various food products.

   Formulated by the European Economic Community (EEC) and are
    universally adopted by the food industry worldwide

   Many E-numbers contain unlisted haraam ingredients in them. Generally
    derived from animals and insects.
              INDUSTRIES (Manufacturing)




Additives which are    ALWAYS of animal origin, are HARAAM such as:

   E120 Cochineal : a red colour obtained from female insects

   E441 Gelatine : derived from the bones and/ or hides of cattle and/ or pigs

   E542 Edible Bone Phosphate : an extract from animal bones

   E904 Shellac : a resin from the lac insect

    Whilst some additives with a common code such as E47, can be either of
    animal or plant origin and this latter type needs to be investigated on a
    case-by-case basis per product/ manufacturer
              INDUSTRIES (Manufacturing)


The main additives you need to be aware of are:

   Glycerol / Glycerin / Glycerine (E422) - haraam if obtained from pork or
    non-halal meat sources.

   Emulsifiers (E470 to E483) - haraam if obtained from pork or non-halal
    sources.

   Edible Bone Phosphate (E542) - haraam if obtained from pork or non-halal
    meat sources.
           LOGISTICS

   Penang Port Accredited as Halal Port
    Halal Penang envisages the Penang Port to be the 2nd best Halal port in the world,
    just after Rotterdam.

   The port was awarded the MS1900 in May 2009. This accreditation from SIRIM
    certifies that the port’s operations comply with the Shariah law for Halal. With that, we
    are able to brand Penang Port as a Halal port.
   Penang Port is the first port in Malaysia to achieve the MS1900:2005 “Quality
    Management Systems - Requirements from lslamic Perspectives” for the
    provision of container handling services and dedicated warehouse services within
    Penang Port.

   Linkages with Rotterdam Port and other ports
   Penang Port is now having direct discussions with the Rotterdam Port in Holland to
    collaborate on the development of Halal ports and linking the ports together. Port of
    Rotterdam International has begin the discussions with other ports in the world ;
    ( Port of Sohar,( Oman) Port of Suape (Brazil) and Port of Positra (India).
Halal Logistics

    Newer phenomenon whereby Syariah element is applied to
    logistics discipline.
   Integral management of physical goods flow and information flow
    that complies with the aspect of Syariah
   A supply chain approach that ensures integrity from :

    Farm (upstreams)                     Fork (downstream)
                                           (packaging/certification/transportation/
                                          warehousing/handling of Halal products at
                                                           ports)

   As the integrity of Halal products become more important, logistics
    control plays a key role in facilitating the manufacturing,logistics and
    trade of Halal products throughout the world.
   Halal supply chains include everything from the procurement and
    preparation of genuine halal ingredients to the manufacturing and
    delivery of the final product all the way to customer shelves.

   The halal industry implements a 'farm to table' operation, presenting
    opportunities for various players in the logistics industry to climb
    aboard the process including ports, shipping and freight forwarding,
    warehousing and handling facilities.
   Halal Certification Body

   Branding of the halal certification systems carried out by Penang State Islamic
    Religious Department (JAIPP) to a single dedicated department, the Halal
    Management Division, enabling a more professional approach to certification.


   Accreditation of Halal Certification Body - Henan

   The Halal Management Division, JAIPP has managed to work in tandem with JAKIM
    ( Department of Islamic Malaysia) to accredit the halal certification body in Henan
    Province, China ( Islamic Association of Henan).
   Therefore, Halal certification issued by Islamic Association of Henan is recognized by
    JAKIM, Malaysia.
   Penang State Islamic Religious Department (JAIPP) is in works to accredit other
    halal bodies.
CLUSTERS @PIHH
                                          LIFE SCIENCES
        AGRO-BASED
                                          (Bio-tech/ Medical/
                                          Wellness)
 Key Project : Juru Beef     Pharmaceuticals
 Cattle Rearing              Medical Devices
 Integrated Abbatoir & Meat  Cosmetic & personal Care
  Processing

              Halal R&D CENTRE
               Halal Science Centre, Chulalongkorn University
        R&D    Halal Food Science Centre, Prince Sonkla University
               Halal Products Research Institute, UPM
               Halal Industry Research Centre, IIUM
              University Science Malaysia
                                         HALAL Science & Technology
                   AGRO-BASED


   International Halal Leather Trading Hub

   Penang to become the first international halal leather hub in the world.

    The venture with Halal Industries UK (HIG) would see Penang becoming the central
    hub for the halal leather supply chain including importing, certifying and trading with
    halal leather producers from China, India, Pakistan, Bangladesh and Brazil.

   The total skin and hide market in the world is estimated to worth US$100bil
    (RM341bil) with products ranging from apparel, accessories, bags, wallets and
    furniture. Penang is well-positioned to serve the halal leather industry due to its
    strategic location and investment-friendly infrastructure.
   Lifesytle pertaining to halal leather
                 LIFE SCIENCES
                 (Bio-tech/ Medical/ Wellness)

   Global Cosmetics Market Size & Global Halal
    Cosmetics 2010
         Total Global                    Total Halal Cosmetics
      Cosmetics Market                        Market Size
             Size                           USD $ 13 billion
       USD $334 billion




   The growth of the Halal cosmetics market currently worth an
    estimated USD$ 560 million worldwide.
•   The halal cosmetics still at INFANCY.
•   Consumers are switching to halal PC&C due to concern over the
    health & environmental hazards (i.e swine placenta in anti-wrinkle
    cream, others linked chemical cosmetics to cancer and birth defects
    & cruelty against animal testing)

•   Demand :
•    App. USD$150 million Halal cosmetics distributed to UAE each
    year
•   Market size for PC&C in Middle East regions ~USD 560 million
•   In Saudi Arabia alone the total sales for cosmetics reached USD 1.3
    billion in 2006.
CLUSTERS @PIHH
       HOSPITALITY & TOURISM

HALAL HOSPITALITY PARK
   International Hotel Chain – Syariah compliant
   Spa & Wellness Centre
   Dedicated Holistic hospitality development
   Medical Tourism - syariah compliant medical centres


       HUMAN CAPITAL
        Training Facilities Available (PSDC)
        Collaboration with World Halal Renowned Training
         Academy
        Professionals, Certifiers, Auditors, Scientists
                        HUMAN CAPITAL



   Halal Penang is collaborating with PSDC and Penang International Islamic &
    Technological College (KITAB) to develop skilled and trained Halal auditors.

   Collaborating with education institutes in Riyadh to develop licensed and skilled
    Halal auditors

   Collaborating with 2 prestigious education institutes ; by developing Halal Catering
    syllabus

   Recently collaborated with International Halal Integrity Alliance (IHIA), a non-profit
    organisation in M’sia created to uphold the halal integrity to train competent Halal
    auditors.
CLUSTERS @PIHH
      FINANCE
 Gateway to GLOBAL ISLAMIC Financial Services
 Vibrant Islamic Banking, Takaful & Financial industry
 Presence of international financial institutions
 Offshore Banking facilities
 Linking businesses to Funders – Islamic bankers, VCs


               SUPPORT SERVICES
          IT Infrastructure – Traceability system
          Niche Consultancy
          Test Labs
          Market Research – muslim markets
               FINANCE
Halal Ca pital Market Conference
   Will be held on 25th – 28th October 2010 at London

   The conference event will take place over 4 days and will bring
    together leading professionals from the mainstream financial sector
    and the global Halal industry, senior managers of Islamic finance
    and businesses institutions exclusively dealing in the Halal sector
    and social and commercial investors.


ShariaUMEX
   The Sharia Ummah Securities Information Exchange Ltd
    (ShariaUMEX) is a dedicated securities information and trading
    gateway that covers news and information about Sharia compliant
    securities and Islamic finance from all of the world’s main markets.
           ROTTERDAM PORT




                                    Pakistan
                                        QASIM PORT                  America
                      SOH AR PORT
                       Arab
                                                     PEN ANG PORT




  LIFE
SCIENCES




           MARKETING
           PIHH –the link of global halal market
Role of
HALAL PENANG
 Facilitation agency owned by of Penang State Government of
Malaysia

 Role: Promote, facilitate and develop halal industries in PIHH
(Halal Penang)
Halal Penang Activities
  •   Investor facilitation     PENANG HALAL   TASK
         Certification               FORCE
         Manufacturing
         Trading
         Services
  • Business Matching
      Trading partners
  • Trade mission
     e.g. Henan Province, China
  • Trade Fairs (Local & International)
      MIHAS
      World Halal Forum
PIHH Development           Halal Research Council
Sdn Bhd                    192- Ahmad Block, New
                           Garden Town
Level 44, KOMTAR,
                           Lahore, Pakistan
10503 Penang, Malaysia
Tel: +604-2625444 Fax:     Ph: +92i42i5913096-8,
+604-2635444               5858990, 8407850
Email:                     Fax: +92i42i5913056
info@halalpenang.com       E-mail: info@halalrc.org
Web :                      Website: www.halalrc.org
www.halalpenang.com


                         Thank You 

				
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