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‘POWER OF HALAL BRANDING’

by

Asad Sajjad Secretary General / CEO

HALAL DEVELOPMENT COUNCIL

at

Lahore International Halal Conference & Expo . August 9, 2010 www.halalrc.org

Data in this presentation is with the courtesy of IHI Alliance Malaysia,

Kaseh Dia Consulting Malaysia, Halal Industry Development Corporation Malaysia, Asif International Malaysia, Islamic population.com and TIME Magazine.

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What is Halal?

• In today’s world, it has become very important for Muslims to determine whether the products they use are Halal / permissible in Islam or not.

• This problem of determination is not only limited to food and beverages but also to other non-food products and services.

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Awareness of the Halal Concept

• Halal is an Islamic value, and has a direct impact on how

products are produced, processed, distributed, stored, sold and consumed.

• The awareness of how big the global Halal market is & what

product sectors it is covering, is very low in Pakistan and most of us believe that Halal is only about meat.

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Halal Products

Halal Products include both Food & Non-Food Items.

Halal Food includes products such as:

- Meat & Poultry - Confectionery - Dairy Products - Canned & Frozen Food - Bakery Products - Organic Food - Herbal Products - Beverages etc

Halal Non-Food include products such as:

- Cosmetics - Toiletries - Perfumes - Beauty products - Pharmaceuticals - Nutraceuticals - Leather products - Animal & Poultry Feed… etc

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Halal Services

HALAL Services are also important components of the global Halal market, including:

- Islamic Banking, Securities & Bonds - Islamic Travel & Tourism - Halal Processing, Packaging, the complete Supply Chain - Halal Food Services (catering / hotels, restaurants etc) - Education & Training - HALAL Logistics: This is important to ensure that a HALAL product remains HALAL from its origin to the consumers – from the Farm to the Fork..

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Halal Demand on the Rise

• The present Muslim population is estimated to be 1.73 (or .79) billion. Growing at a rate of 2.9 % per year, it is projected to be 1.85 billion by 2011.

• With this growth rate, by 2025, 30% of the world's total population will be Muslim.

• The demand for Halal products and services will continue to rise with this increase in population.

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Global Halal Market

• As per the latest research by World Halal Forum and quoted in TIME Magazine (May 2009), the total size of Global Halal food market is worth about $632 billion.

• This is based on the world Muslim population of about approx 1.73 billion. However, if we also include the non-Muslim consumers, the total figure will be much higher.

• Experts believe the size of the total Global Halal market including Halal food, consumer products, cosmetics, pharmaceutical, logistics and other Halal related services ranges between US$ 1.2 to US$ 2 trillion per annum.

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Time Magazine (May 2009)

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Biggest Exporters

• In the west , Brazil, USA, France, Australia & New Zealand are the largest exporters of Halal products, whereas in the East, Thailand

is the biggest exporter of Halal Products. Followed by Philippines, Malaysia, Indonesia, Singapore and India. • Brazil exports 1 million frozen Halal chickens and 300,000 MT of

Halal beef products annually. • France exports 750,000 MT of Halal frozen chickens annually.. • United States is the third largest beef exporter in the world and more

than 80 percent of its frozen beef is Halal. • New Zealand is the fourth largest beef exporter in the world & about

40 percent of its beef products exports are Halal.

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Biggest Markets

• In Europe, the market size of Halal Foods is estimated to be $66 billion. France having the largest share of approx $17 billion

• In United Kingdom, only the Halal meat sale is worth over $600 million annually.

• The American Muslims spend around $13 billion on Halal food products annually.

• The GCC’s Halal food imports is worth approx $44 billion.

• Annual Halal Food Trade in India is worth over $21 billion.

• Indonesia’s annual Halal Food expenditure is over $70 billion

• Other Halal product importers include Saudi Arabia, Egypt, Iran, GCC, Africa, and other Muslim countries.

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Global Players

• The Halal products are recognized as Good Quality & Healthy products so a big number of non-Muslims consumers also buy Halal products.

• Players from every sector incl. the huge multinationals are trying

to capture a share of the growing Halal market. • Famous international brands such as Nestle, Colgate, Subway,

KFC, McDonalds, Pizza Hut and major hypermarkets in the world such as Carrefour and Groupe Casino of France, Tesco, Asda and Sainsbury of UK are some examples.

• Latest addition is Walmart is USA who started sourcing Halal products for Muslim customers.

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Power of Halal Logo

83.6%

69.6%

32.8% 31.3%

14.9%

27.5%

47.8% 47.8%

1.5% 2.9%

19.4% 20.9%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Halal Logo Brand Name Price Country of Origin

A survey done on consumer buying preferences in South East Asia showed

that 31 % consumers look for Country of Origin, a 32.8 % prefer the price

point, 69.6 % go for the brand name and 83.6 % consumers, the highest

percentage, prefer buying products carrying the Halal Logo.

The Halal logo is of maximum importance to the consumers.

Important

Quite Important

Not Important

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The Halal Standard

• The Halal products are recognized for their quality. Halal Brand is comprised of 3 main standards:

1) Free from Pig or other Haram (products / by-products). 2) Free from Alcohol. 3) Good for human consumption / human use.

• There are more than 200 Halal certification agencies present in around 25 countries including Malaysia, Indonesia and also in most non-Muslim countries including Thailand, Philippines, Japan, Taiwan, China, Bosnia, Switzerland, France, Germany, Netherlands, Austria, UK, Australia, New Zealand, Africa, Brazil and United States.

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Where to find Halal

Customers?

• No doubt that Middle East is the big buyer of Halal meat BUT Muslims living outside the sub continent and the Middle East are the most potential customers for Halal products and services.

• They live in countries of non Muslim majority, and are very conscious of their religious belief and take care of what they eat and use. Halal Certified is very important for them.

• Food or Non-Food, they want to buy when they see the

Halal Certified stamp.. They want the Halal Brand

• Quick look at some of the specific Halal Target markets:

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Halal Target Market North, East & South Africa

North Africa: More then 181 million Muslims including Egypt 71m, Algeria 33m, Morocco 31m, Sudan 30m, Tunisia 10m & Libya 6m. East Africa: More then 92 million Muslims including Ethiopia 37m, Tanzania 19m, Somalia 9m, Kenya 8m, Uganda 4.5m, Mozambique 4m, Malawi 2.5m, Eritrea 2m, Zambia 1.8m, Madagascar 1.2m and other countries. Market Overview: Growing awareness of HALAL with a major Muslims population in this region creating good prospects for companies to export Halal products in these countries. South Africa: Only 1.2 million Muslims but important market as Muslims are very particular on HALAL products and thus there is a ready market for Halal products. South Africa also serve as a gateway for the other Sub Sahara African countries.

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Halal Target Market West & Central Africa + Europe

West Africa: More then 150 million Muslims including Nigeria 65m, Niger 14m, Mali 13m, Ivory Coast 12m,Senegal 11m, Guinea 8m, Ghana 7m, Burkina Faso 7m, Mauritania 3m, Sierra Lione 3m, plus other countries including Togo, Liberia, Guinea Bissau, Gambia, Cape Verde and Benin.

Central Africa : 17 million Muslims including Congo 6m, Chad 5m, Cameroon 3m

Market Overview: Huge Muslim population with a ready customer base in this region creating good prospects for Halal suppliers.

EUROPE: More then 50 million Muslims including Russia 27m, France 6m, Germany 3m, Bosnia 2.3m Kosovo 2m, Albania 2m, UK 1.5m, Italy 1.4m plus other countries including Ukraine, Italy, Spain, Netherlands, Portugal, Greece, Norway, Sweden Bulgaria and other countries.

Market Overview: Its relatively small but a serious market for Halal suppliers due to its high purchasing power and clusters of Muslim population in smaller areas like France with 6 million Muslims, Germany with 3 million & Russia with 27 million Muslims.

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Halal Target Market West Asia

West Asia : More that 200 million Muslims including Saudi Arabia 24m, Turkey 73 m, Yemen 21m, Iraq 28m, Syria 17m, Azerbaijan 8m, UAE 5m, Jordan 5m, Palestine 4m, Oman 2.5m, Kuwait 2m, Lebanon 2m plus other countries including Qatar, Bahrain, Cyprus.

Market Overview: There are no specific HALAL Standards in these countries. All products imported or manufactured locally have to be HALAL. Most of these countries have no restrictions on import of Halal.

Ready market for companies to export their Halal products & services.

Turkey is an exception as it is already promoting itself as Halal gateway to Europe & developing its own Halal standards & certification.

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Halal Target Market East Asia & ASEAN

East Asia and ASEAN: More than 360 million Muslims including Indonesia 195m, China 133m, Malaysia 15m, Philippines 6m, Thailand 6m, Myanmar 2m and other countries including Brunei Darussalam, Cambodia, Singapore, Hong Kong, Japan, Vietnam, Korea, Mongolia & Taiwan. Market Overview: Huge Target market for Halal products. • ASEAN countries are one of the world’s leading suppliers and also importers of HALAL products. They compete with each other in HALAL products but also do substantial trading among themselves.

• For example Indonesia is the biggest buyer of Malaysian HALAL food, creating a big opportunity for other Halal suppliers. • China is an untapped market for Halal products and Halal suppliers should concentrate on exports of Halal Products in China, Indonesia and Malaysia.

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Halal Target Market South Central Asia + Oceania

South Central Asia: More then 600 million Muslims (including India 154m, Pakistan 170m, Bangladesh 127m, Iran 69m, Afghanistan 30m, Uzbekistan 23m, Kazakhstan 7m, Tajikistan 6m, Turkmenistan 4.6m, Kyrgyzstan 4m, and other countries including Sri Lanka, Nepal, Bhutan & Maldives etc

Market Overview: It is a massive market for Halal products. Most are Muslim countries but without any HALAL certification. Halal suppliers should aggressively target this region especially Iran and the CIS.

• India is one of the biggest buffalo meat supplier in Asia but its also a very big market for Halal products due to its huge Muslim population and countries with land route with India can specially take advantage to push their Halal products in India.

Oceania: Population of only 0.6m Muslims in Australia, New Zealand, Fiji & other countries but the high per capita expenditure has made this small population, almost billion dollar market for Halal Food products.

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Halal Market Potential in USA

Muslim population in the Americas is almost 10 million (incl USA, Brazil, Canada, Central America, South America & Caribbean).

American Muslims (particularly USA) are looking for HALAL products which are not readily available in their market. With a Jewish population of 5 to 6 million, the US Kosher market has been valued in excess of $100 billion annually with a range of 86,000 certified Kosher products on the shelves.

However, a recent Mintel’s survey in the US shows, that only 15% of the Kosher customers are Jewish. 69% non Jews buy Kosher as they consider Kosher to be hygienic and good for health. And the balance 16% Kosher buyers in the US are Muslim! It shows that Muslims consume more Kosher products than Jews

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Why do American Muslims buy Kosher Products?

• Because there are only 1,000 Halal certified products available in North America, and most are not available through the mainstream retail outlets.

• So, for every Halal product on sale, there are 86 kosher products to choose from…

• There are simply not enough Halal products on the shelves and US Muslims are spending $16 billion a year on Kosher products

• This is a very BIG opportunity for Pakistani exporters to push Halal certified products in North America

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Halal Food Market Potential Global Food Expenditure by Continent Total Halal Food Expenditure by Continent

Global Food Market Size $ 3.99 Trillion Halal Food Market Size $ 632 Billion

This chart shows that that the total global Food market is worth aprox $4 trillion annually, out of which Halal food share is $ 632 billion or about 16 %

Where as Muslims today are 26% of total global population so the percentage of Halal food to the global food market is about 10 % less. This only indicate that even today there is potential of Halal food supply.

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Breakdown of Halal Food Market

Global Halal Food Size

(in US$ Billion)

2004 2005 2009 2010 (p)

$ 587.2 $ 596.1 $ 634.5 $ 641.5

1. Africa 136.9 139.5 150.3 153.4

2. Asian Countries 369.6 375.8 400.1 406.1

GCC Countries 38.4 39.5 43.8 44.7

Indonesia 72.9 73.9 77.6 78.5

China 18.5 18.9 20.8 21.2

India 21.8 22.1 23.6 24.0

Malaysia 6.6 6.9 8.2 8.4

3. European Countries 64.3 64.4 66.6 67.0

France 16.4 16.5 17.4 17.6

Russian Federation 20.7 20.8 21.7 21.9

United Kingdom 3.4 3.5 4.1 4.2

4. Australia/ Oceania 1.1 1.1 1.5 1.6

5. Americas 15.3 15.5 16.1 16.2

USA 12.3 12.5 12.9 13.1

Canada 1.4 1.5 1.8 1.9

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Halal Opportunities

• Halal now covers a complete range of products offered in supermarkets, in 5-star hotels, Restaurants, Fast food chains, Airlines, School dinners, Military food and even Prison rations.

• Halal has become a lifestyle choice with the wide range of products including personal hygiene, healthcare products, toiletries, cosmetics and many more …..

• The movement of Halal products around the world has created an

entire Halal value chain. New sectors have emerged relating to Halal logistics, Security, Storage, Auditing and Halal industrial development.

• Dedicated Halal-certified zones, Halal–Only Industrial Parks, Halal Food Parks, Free Zones, etc are part of the Halal industry.

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The Brand label of “Halal”

Halal has now become an international

brand. A brand label that is recognized for ‘Good Quality products’ expanding the Halal Certified trade to almost $2 trillion, a year..

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The “Halal” Brand

Products

Sold in the world

Under Halal Label

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Halal status in Pakistan

Halal certification is a must to label the products as “Halal”. Pakistan doesn’t have an official Halal Certification Body & the Halal products testing facilities are also poor. Pakistani HALAL products are often not accepted as “Halal” in international markets because they are not Halal Certified. Muslims in USA, Europe, Africa or Asia do not buy Pakistani Brands as even our most popular brands have NO recognition outside Pakistan (except a few hundred thousand people). However, they are familiar with the Halal Brand & will pick up our products from the shelves if they see the brand label or logo of Halal. Halal market is undoubtedly the biggest untapped market for Pakistani Exports.

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Wake up call for PAKISTAN

The financial crisis, negative balance of payments, massive debt burden & declining exports are all impacting our country.

Pakistan can fight back against all these odds by focusing on the strength, which we have not used so far and we can take advantage of the opportunity that we have ignored..

The Trillion Dollar HALAL Market..

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Standards: the biggest barrier

Quality Standards are the barriers and not WTO.

Quality Standards are the barriers and not Tariffs.

Quality can win the customers more than the Price.

Halal Certified means the best quality

Halal Standards are the best Standards

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Power of HALAL

Our Strength: Pakistan is known to the world as a Muslim country

Ample opportunities to develop the Halal sector. Must use the Power of Halal to market our products under ‘Halal Pakistan’ brand in the world.. Opportunity: Existing demand for Halal products from over a billion READY customers all over the world.

We have to Stand-Up to the challenge as a nation and step forward to enter the Halal Market to reach out to the potential customers.

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‘Halal Certified’ is the future

Halal compliant will improve quality of our products.

Halal brand will add more $$ value to our exports.

Halal logo will give us international brand recognition.

Halal industry will bring investments in our country

and create new jobs.

Halal certified exports will help reduce our trade deficit.

Halal certified exports is the best recipe to help us boost our

economy in the shortest period of time.

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Halal Development Council

HDC is the first registered

NGO in Pakistan, dedicated to the development

of Halal economy.

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Halal Development Council

HDC will bridge the gap between Pakistan & the Global Halal World by providing platforms for • Awareness • Standards & Compliance • Testing & Certification • Research & Updates • Marketing & Branding • Trade Development • Investment promotion • Halal Industry development

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Halal Development Council

HDC’s objectives also include promotion of Pakistan as the Halal Hub of the Region

and to introduce

‘Halal Pakistan’ brand label in the world as the guarantee for

‘Good Quality’ product

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Halal Development Council

Activities planned for 2010 – 2011

• Awareness Raising Seminars on “Power of Halal Brand” • Media Campaign for promotion of ‘Halal Certified’

• Halal Academy - Halal Compliance Training Workshops

• Halal Academy – Halal Branding Workshops

• Halal Business Services (B2B portal)

• Halal e-Updates

• Global Halal Congress - Karachi / Lahore

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Halal Development Council

Activities planned for 2010 – 2011 • International Buyers Meeting - Karachi / Lahore

• Global Halal Trade Expo – Karachi / Lahore

• Export Marketing & Research Delegations

• Halal Green Pages

• Technical Workshops & Seminars

• HDC Science & Support Center for Standards, Testing, Certification, Research, Training, Education, Consultancy, ICT development and Gender support.

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Product Sectors Covered Halal Food & Beverage

• Meat, Poultry & Seafood

• Canned Food & Frozen Foods

• Ready to eat Meals

• Custard Powder & Jelly Crystals

• Cooking Oil & Vanaspati Ghee

• Snacks & Cereal

• Baby Food

• Jams, Jellies & Marmalades

• Tomato Ketchup & Pickles

• Roti, Paratha & Shermal

• Mithai, Nimco & Bakers

• Fruits & Vegetable Pulp

• Sugar & Sweeteners

• Traditional / Ethnic Food

• Energy Drink, Squashes & Soft Drink

• Mineral Water, Milk & Juices

Food Additives

• Herbs, Spices & Salt

• Ready Mix Masala & Sauces

• Flavors, Essence, Colors & Fragrance

• Sweeteners & Syrup

• Supplements

Confectionaries & Dairy • Biscuit & Chocolate

• Sweets, Toffees & Bubble Gums

• Supari

• Butter & Margarine

• Ice Cream

Agriculture • Rice & Pulses • Honey & Dates • Flour, Corn Flour & Gram Flour (Besan) • Fruit, Vegetable & Dry Fruit • Animal & Poultry Feed • Animal By-Products • Fertilizers & Pesticides • Veterinary & Poultry Medicines

Personal Care & Cosmetics • Soap (Body & Clothes)

• Detergent (Liquids & Powder)

• Hair Dyes, Oil & gel

• Shampoo & Conditioners

• Shaving Soap, Cream & After Shave

• Deodorant, Perfume & Itar

• Fairness & Hair Removing Cream

• Skin Care Product

• Toiletries & Talcum Powder

• Other cosmetics (Lipsticks, nail polish, etc.)

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Product Sectors Covered Personal Care & Cosmetics • Herbal Toothpaste • Herbal Soap & Shampoo • Henna Paste, Powder & Kajal • Herbal Cosmetics & Medicine • Herbal Skin Care Product

Medicines & Dental Care • Allopathic Medicines • Homoeopathic Medicines • Nutraceutical Medicines • Tooth Powder, paste & Tooth Brush • Mouthwash & Floss

Textiles & Leather • Ahram & Prayer Mats • Women Apparel, Hijab, Scarf & Gowns • Towels & Fabrics • Men’s Apparel, Prayer Caps & Scarf • Leather Apparel, Luggage & Shoes • Leather Accessories

Banking & Finance • Islamic Banks • Takaful (Insurance) • Securities & Islamic Bonds • Islamic Finance & Business Consultants • Housing Finance

Halal Supply Chain • Machinery & Equipment • Dispensing Equipment • Chilling / Freezing Equipment • Processing & Packaging • Storage Systems • Logistic services

Tourism & Hospitality • Hajj & Umrah Services • Travel & Tour operators • Catering Services • Restaurants, Hotels & Motels

Others • Air Freshener • Water Filter & Purification • Water Treatment Chemicals • Halal Lifestyle • Tasbeh / Tasbeh Counter • Azan Clock / Kaaba Guider • Trade Bodies • Halal Certification Authorities • Halal Agenda Promoters • Halal Online Trading & E-commerce Solutions • Marketing Companies • Islamic Art & Architecture • Islamic Audio Video • Education, Training Services & Publications • Pencils – Tooth picks

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THANK YOU Halal Research Council

www.halalrc.org