The green circular Halal mark, a ubiquitous symbol found in Muslim food establishments worldwide, represents much more than just permissible food – it signifies adherence to a comprehensive set of Islamic dietary laws, assuring Muslims that the product is suitable for consumption. But the concept of ‘Halal’, meaning ‘permissible’ in Arabic, extends far beyond just food. It embodies a holistic approach to life, encompassing ethical, moral, and humane practices across various sectors.

While the avoidance of ‘haram’ (i.e., ‘forbidden’) ingredients like pork, pork lard, alcohol, and blood is fundamental, Halal also dictates specific methods of animal slaughter designed to minimise suffering. This emphasis on ethical treatment extends throughout the supply chain, with strict standards for handling, storage, and packaging.

The principles of Halal resonate deeply with today's increasingly conscious consumers. With growing concerns about health, ethics, and environmental impact, Halal's emphasis on transparency, quality, and safety has attracted a wider audience. This is evident in the growing popularity of Halal-certified restaurants and products, even in regions with smaller Muslim populations like Europe and North America.

This global appeal is fuelled by the significant economic power and demographic size of the Muslim world. In 2024, the global Muslim population reached an estimated 2.04 billion, representing over a quarter of the world's population. This translates to a powerful consumer base with a combined GDP of US$9.1 trillion (S$12.4 trillion) across the Organisation of Islamic Cooperation (OIC) nations.

The Halal food industry alone reached a value of US$2.7 trillion (S$3.68 trillion) in 2024 and is projected to surge to US$5.9 trillion (S$8.05 trillion) by 2033, growing at an impressive rate of 8.92%. The Asia Pacific region, home to the world's largest Muslim population, dominates the global Halal market. Indonesia, Malaysia, Pakistan, and Bangladesh are key contributors, boasting well-established Halal food industries and robust regulatory frameworks. 

As the Halal market continues its global expansion, fuelled by both religious observance and a growing awareness of its ethical and quality assurances, it presents a wealth of opportunities – and challenges – for businesses and nations alike.

Halal's stringent certification process can present a significant barrier to entry, especially for a non-Muslim majority country like Vietnam. Certifying food ingredients and all activities across the supply chain becomes even more complex when different Halal certifying bodies have varying criteria, leading to inconsistencies in certification. This lack of a unified global standard is a challenge for many, but one that Vietnam has addressed admirably.

For years, Vietnam's growth in the Halal export market was hindered by the absence of a standardised and widely recognised Halal certification system within the country. A breakthrough came in March 2024 with the establishment of the Vietnam Halal Certification Authority (HALCERT). This body streamlines, standardises, and oversees Halal certification processes nationwide, while also connecting companies within the Halal sector to facilitate discussions, training, and international cooperation.

HALCERT's establishment is pivotal in ensuring compliance with Halal standards recognised by major Halal markets globally. Currently, around 50 Vietnamese companies have received Halal certification for various products, including seafood, beverages, and confectionery.

As one of the world's top 20 food exporters and top 15 agricultural exporters, Vietnam possesses significant production capabilities. Coupled with its proximity to key Muslim markets, the country has immense Halal export potential. Accordingly, the Vietnam Halal Centre estimates that Vietnam could produce US$34 billion worth of Halal products for OIC member countries.

Indeed, many Vietnamese companies have already made successful inroads into the Halal market. Minh Phu Seafood Corporation, Vietnam's leading shrimp exporter and one of the largest shrimp producers globally, has significantly increased its exports to Muslim countries after attaining Halal certification. Similarly, Vinamilk, Vietnam's largest dairy company, has introduced Halal-certified products to its lineup, unlocking new markets in the Middle East and Southeast Asia.

Vietnam's position in the Halal market is set to strengthen further as it continues to enhance its compliance with international Halal standards recognised by various OIC countries. To further improve access to key Halal markets in Southeast Asia, agreements with Malaysian and Indonesian Halal authorities aim to create mutual recognition of certification standards.

Halal tourism is another burgeoning market with vast potential. Its estimated value of US$256.51 billion (S$351.8 billion) in 2023 is projected to reach US$410.9 billion (S$563.55 billion) by 2032, growing at a rate of 5.38%. This growth reflects the increasing demand for Halal-friendly travel destinations that cater to the needs of the expanding global Muslim population.

The true allure of China for Muslim travellers lies in its rich Islamic heritage. China boasts a tapestry of ancient Islamic landmarks, including the Great Mosque of Xi'an, one of the oldest mosques in China, renowned for its beautiful blend of Arabic and Chinese architecture. Xinjiang's Id Kah Mosque in Kashgar, the largest in China with a capacity of up to 20,000 people, is another significant landmark. Also, Kashgar, China's westernmost city in Xinjiang, offers visitors an authentic cultural experience with its multitude of mosque minarets and bustling bazaars, reminiscent of its historical role as a trading post along the Silk Road.

China, alongside with its Islamic heritage, its status as a global economic powerhouse and its impressive transport infrastructure, makes the country an emerging attractive Halal-friendly destination. The availability of Halal-certified restaurants, hotels, and resorts offering Halal meals and prayer facilities is on the rise. Foreign visitors and tour consultants report increasing ease in finding Halal food not only in major cities like Beijing, Shanghai, and Guangzhou, but also in less developed cities – making it easier for Muslims to explore the vast expanse of China's diverse regions.

The 2023/24 State of the Global Islamic Economy Report (SGIE) ranked Malaysia first in its Global Islamic Economy Indicator (GIEI) for the tenth consecutive year. This achievement underscores the strength and global recognition of Malaysia's Halal certification system and its commitment to the Islamic economy.

Despite this leading position, Deputy Prime Minister Ahmad Zahid has highlighted the need for Malaysia to further enhance its Halal certification system by adopting blockchain technology – noting the success of blockchain in combating fraud and increasing transparency in Halal certification processes in countries like the United Arab Emirates, Saudi Arabia, and Australia. DPM Ahmad Zahid reiterated Malaysia's dedication to excellence in Halal certification and the potential of blockchain to maintain the highest standards of authenticity and integrity.

Indonesia, another major player in the global Halal market, boasts the world's largest Muslim population at an estimated 231 million – representing over 13% of all Muslims worldwide, according the World Population Review 2024. Indonesia also ranks highly on the GIEI benchmark, securing third place behind Malaysia and Saudi Arabia in the 2023/24 SGIE Report.

Even with robust certification systems in place, challenges remain. In both Malaysia and Indonesia, instances of fraud and misuse of Halal labels have occurred. In 2012, Indonesian authorities discovered that Halal-certified processed beef products had been adulterated with pork and distributed across the country. Then in 2014, consumer confidence in Malaysia was shaken when tests found pork DNA in Cadbury chocolate products (although further investigation later confirmed them to be pork-free).

These incidents highlight the need for enhanced traceability and transparency in the Halal supply chain. Blockchain technology offers a solution. In a pioneering move within Indonesia, PT Sreeya Sewu Indonesia Tbk (Sreeya Sewu), a major poultry producer, implemented a blockchain-based traceability system for Halal poultry. This system provides a digital record of every step in the slaughtering process, from the arrival of the poultry to inspection, slaughter, grading, and delivery.

Before blockchain, consumer confidence in Halal products relied primarily on the presence of the Halal logo. Now, with blockchain technology, every stage of the supply chain – from origin to delivery – can be traced by stakeholders, including consumers. Data recorded on the blockchain is secure and immutable, making this decentralised ledger system ideal for enhancing the traceability and trustworthiness of Halal labelling.

Halal certification is not just about meeting religious requirements, it's increasingly intertwined with broader consumer trends towards healthier and more ethical choices. The principles of cleanliness, health, and ethical treatment of animals inherent in Halal align seamlessly with the values of organic farming – such as environmental sustainability, animal welfare, and the use of natural fertilisers. This convergence has given rise to the burgeoning market for Halal organic products.

Organic Halal food caters to the growing demand for products that are not only permissible, but also sustainably produced, free from harmful chemicals, and ethically sourced. According to the Halal Research Council, Halal organic food sales in the Asia Pacific region are experiencing a remarkable 12% annual growth rate. This reflects the strong potential of a market that caters to both Halal compliance and environmentally conscious, health-focused consumers.

The prominence of healthy, organic, and sustainable Halal food choices was evident at THAIFEX - Anuga Asia 2024, Asia's largest Food & Beverage (F&B) trade show – where over 20% of Halal-certified food products featured were also labelled as organic, plant-based, or sustainably produced and packaged. There, Singapore-based Cremer Sustainable Foods Pte Ltd showcased its innovative plant-based braised Mala Duck Strips made from flaxseed, soy, and authentic mala spices – all without animal fat.

Beyond meat substitutes, plant-based Halal options now extend to dairy-free, nut-based milk and cheese. These products provide healthier and more ethical alternatives for modern consumers, while also catering to those with lactose intolerance. Another Singaporean exhibitor, Gold Kili Trading Enterprise (S) Pte Ltd, presented its Oat-K dairy-free, oat-based, Halal-certified beverage series, which uses plant-based oat powder instead of milk.

Singapore's Islamic authorities have been proactive in responding to these evolving food trends. Majlis Ugama Islam Singapura (MUIS), also known as the Islamic Religious Council of Singapore (IRCS), the sole Halal certification body in Singapore, issued a groundbreaking ruling in February 2024 – declaring that cultivated meat can be considered Halal if the cells sourced for cultivation are Halal and all other Halal preparation principles are observed.

Following the ruling, Masagos Zulkifli, Singapore’s Minister-in-charge of Muslim Affairs, said, “We can be one of the first countries in the world to actually lead in this field, not only producing cultivated meat but also ensuring it is Halal for Muslims to consume.” MUIS also commented, “Novel foods, which can be produced through more environmentally sustainable means compared to traditional agriculture and aquaculture, offer a practical way to contribute to environmental sustainability.”

The MUIS ruling serves as a compelling example for Islamic authorities worldwide to consider the permissibility of new food products and technologies under Islamic dietary laws. This forward-thinking approach is crucial in navigating the rise of alternative proteins and the global need for sustainable food solutions.

The global Halal market is poised for continued rapid growth into the 2030s, driven by a confluence of factors. These include the expanding global Muslim population, the increasing affluence of Muslim consumers, and the rising awareness of Halal as a mark of quality, ethics, and transparency among consumers worldwide. This global appeal is evident in both Muslim-majority and non-Muslim-majority nations, where Halal certification is increasingly recognised as an assurance of ethically sourced, high-quality products.

Regional growth, particularly in the Asia Pacific, is expected to remain robust. Southeast Asian nations like Malaysia and Indonesia will continue to be global hubs for the Islamic economy, driving innovation and setting standards for the Halal industry. Meanwhile, non-Muslim-majority nations such as Vietnam and China are also making significant contributions, particularly in the Halal food and tourism sectors respectively.

However, to fully realise the Halal industry's potential, OIC nations and Halal certification bodies must address key challenges – including the high costs associated with Halal certification and the lack of a universal, globally recognised Halal standard. Furthermore, the industry must adapt to the evolving landscape of new food trends and technologies, ensuring that Halal certification processes remain relevant and robust.

By embracing innovation, fostering collaboration, and addressing these challenges head-on, the Halal industry can unlock its full potential and continue its positive growth trajectory in the years to come.