Asia is about to enter its golden age, with home to 65% of the world’s growing muslim population. While the decade is off to a bumpy start because of the Covid-19 pandemic, the region is on the brink of a new era, one that holds promise of economic growth and technological innovation.
Asia consumer market has seen the rise ofthe global halal industry which is estimated to be worth around USD 3.6 trillion. Growing at an estimated annual rate of 6%, making it one of the fastest-growing consumer segments in the world.
With Technology opening up new doors to investors, highlighting the fact that investors are taking note of how promising the region is. It has a median population age 24 where millennials are over 670 million people of which 75% in Asia - a youthful, productive workforce that’s eager for new technology, experiences, and opportunities. Additionally, as Southeast Asians earn more and gain exponentially higher discretionary income, this creates an opportunity for businesses looking to scale. Southeast Asia is also ripe for disruption, while countries like Indonesia and Malaysia are topping on the Muslim consumer markets.
Singapore is picking up greater momentum now with the SGIE latest report showing the promise in Singapore ranking, which means new businesses can develop solutions to existing problems. This opens new avenues for the growth of a digital economy. With numerous Halal Businesses going global, Asia has the opportunity to outpace the rest of the world in areas like digital payments and smartphone-based businesses, and technology apps like Muslim Pro is close to the 100 million download mark and platforms like CollabDeen emerging with disruptive technology with sharp consumer focus in Global Halal Ecosystem.
The global halal market of 1.8 billion Muslims is no longer confined to food and food-related products. The halal industry has now expanded beyond the food sector to include Islamic Finance, Halal Food & Beverages, Digital Islamic Economy, Modest Fashion & Art, Halal Travel & Tourism, Healthcare & welfare, Islamic Standards & Certification, Islamic Knowledge, Halal Cosmetics, Halal Ingredients, Halal Shipping & Logistic as this covers all sectors of Global Halal Ecosystem.
This development has been triggered by the change in the mindset of Muslim consumers as well as ethical consumer trends worldwide.
The halal market is non-exclusive to Muslims and has gained increasing acceptance among non Muslim consumers who associate halal with ethical consumerism. As such, the values promoted by halal - social responsibility, stewardship of the earth, economic and social justice, animal welfare and ethical investment - have gathered interest beyond its religious compliance. The popularity of, and demand for, halal-certified products among non-Muslim consumers have been on the rise as more consumers are looking for high quality, safe and ethical products.
No longer a mere religious obligation or observance for Muslims, halal (which means “lawful” or “allowable”) has become a powerful market force, becoming increasingly a world-wide market phenomenon for both Muslims and non-Muslims alike. The appendage of “Halal” to a product is not just a guarantee that the product is permitted for Muslims, but it has also become a global symbol for quality assurance and lifestyle choice.
What is Global Islamic Economy
Islamic economy has been defined as "sectors whose core products/services are structurally affected by Islamic ethics and law," driving the faith-inspired ethical consumption needs of the 1.8 billion Muslim consumers worldwide.
The consumers of the Islamic economy are primarily Muslims but also include others outside the Islamic faith who share similar values. The specific consumer practices influenced by Islamic values include the consumption of halal (lawful) food, Islamic financing, modest clothing, family-friendly tourism, as well as other services with special considerations on gender interactions and religious practices. The demand also extends to business practices that seek Islamic business financing, investment and insurance services. The Islamic economy as a collective is creating value for consumers and the economies involved. It also has a major potential to contribute to the global well-being through its underlying socially-conscious ethos.
The halal industry has now evolved from merely halal food products to a holistic halal concept that encompasses the entire value of commercial activities. It has extended beyond food into the realm of business and trade and is fast becoming a global symbol of quality assurance as well as alifestyle choice for both Muslims and non-Muslims. Halal products are gaining wider recognition not only due to meeting Sharia requirements, but also hygiene, sanitation and safety aspects. Increasing demand for halal products is being seen in a number of Muslim countries, with strong economic growth fueling demand. Rising income levels in these key markets have led to higher consumption rates and more opportunities for halal food producers.
While investments in, and the development of, the Islamic economy reached new heights , there is still much to be done. For that reason a roadmap needs to be provided for all stakeholders, spanning private investors, entrepreneurs, regulators and governments, on how best to take the sector forward, benefit substantially, and help realize the potential of an economy that can serve 1.8 billion Muslims as well as the ethical needs of billions of other people from different faiths and ways of life.
The largest of these markets are located in Southeast Asia and West Asia. However, the lack of a recognized global halal compliance standard and certification process has caused a lack of confidence for consumers, and uncertainty for the business. Because halal logos vary between company and country, there is no assurance that all products used and the value chain are indeed halal.
To get these markets to talk using data, analytics, consumer trend there is a real reason and market potential to gear this Industry towards #halalTechnology and #CollabDeen is one product company developing AI and Voice-based systems deeply routed to solve the touchpoints of the Global Islamic Economy using future technology and intuitive design approach.
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