Global Halal food and lifestyle sectors to grow 6% by 2020
The global halal food and lifestyle sector is expected to grow by 6 percent by 2020, according to new research.
According to the early findings of the State of the Global Islamic Economy Report 2015/2016, which was commissioned and supported by the Dubai Islamic Economy Development Centre (DIEDC) and in partnership with Thomson Reuters and DinarStandard, found the global Muslim market spent $142 billion on travel in 2014.
This is expected to reach $233 billion by 2020, it forecast. The most popular destination countries for Muslim tourists are Malaysia, Turkey and the UAE. To meet that growth, new channels are being created, such as HalalBooking.com, a travel search and booking website for halal-conscious travellers. The website expects their bookings for their Turkey-based hotels to reach 10 million per hotel by the end this year and in 2016.
Despite the growth in the halal travel sector, also known as “Shariah-compliant”, the report found some investors are still reluctant to invest in “Muslim-friendly” hotels, for fear of revenue loss associated with not serving alcohol.
Riyanto Sofyan, CEO of Sofyan Hotels, said offering banqueting offers may entice non-Muslim guest: “The halal tourism industry is not limited to Muslims, but rather extols Islamic values that are universal and inclusive, helping to broaden our market reach and attract a wider customer base, regardless of religion.”
The halal food sector is expected to grow by 5.8 percent by 2020, with the demand for ethical treatment of animals alone resulting in a $100 billion organic food market. Although the principle of treating animals is embodied within halal food, educating Organisation of Islamic Cooperation (OIC) countries about the Halal sector and its standards and accreditation continues to be a challenge, the report found.
The research also found that while the fashion industry as a whole continues to face financial pressures as a result of global recession, the modest or Islamic fashion sector is expanding. The Islamic fashion sector accounts today for about 11 percent of the global fashion industry, and is expected to grow by 6 percent by 2020. Some of the key challenges facing the sector are the need to adopt a wider perspective when incorporating Islamic values throughout the modest fashion value chain, the lack of unified payment platforms, and variations in customs rules and regulations across countries.
The full report was presented at the second edition of the Global Islamic Economy Summit (GIES), which took place on October 5 and 6 at the Madinat Jumeriah in Dubai.