Economy, Business And Markets

Iran’s Share of International Halal Market Meager

Iran’s Share of International Halal Market MeagerIran’s Share of International Halal Market Meager

Iran’s share of the global halal market is meager, the former secretary-general of the Federation of Iranian Food Industry Associations said.

“It is estimated that Iran’s share of the $2 trillion global market currently stands at $250-300 million (annually),” Abolhassan Khalili also told IRNA.

Abdolhossein Fakhari, secretary-general of Global Halal Institute, puts Iran’s share at $5-6 million, way below Khalili’s estimate.

The difference can be explained by the fact that although 100% of Iran’s food exports are halal, not all exports are made under the official halal brand.

This is while Malaysia is the leader in the world’s halal industry. 

Out of 100 countries, Iran is the 35th biggest export destination for Malaysian halal products.  

“Malaysia exported around $72.3 million worth of halal products, $24.4 million of food and beverages, $23,000 of palm oil derivatives, $20.5 million of raw materials, $4 million of cosmetics and $340,000 of chemicals to Iran in 2015,” Chief Executive Officer of Malaysia’s Halal Industry Development Corporation, Jamil Bidin, told IRNA. 

Halal is an Arabic word meaning “permissible” or “lawful”, the opposite being “haram”, which means “forbidden” or “unlawful”. The two terms govern almost every aspect of Muslims’ lives, including food, clothing, banking and traveling.

In recent years, halal has evolved in meaning to encompass a range of hygienic and high-quality food products, cosmetics, personal care products, leather goods and food ingredients.

Under the definition proposed by the United Nations Food and Agriculture Organization in 1997, halal food incorporates not only production and processing procedures, but also the manpower, transport, storage and equipment used in different stages.

Technavio’s market research analysts expect the global halal food market to multiply at a speedy rate, with a compound annual growth rate of more than 14% during 2015-19.

Initially, halal food was consumed only by Muslims, but now they are favored globally by people of all religions and ethnic backgrounds, as they are known for being safe, hygienic and quality.

With the rise in demand for halal food products, producers from non-Muslim countries such as the US, Brazil and Australia are keen to tap this opportunity.

According to the Islamic Chamber of Research and Information Center, 1,500 food companies have obtained halal brand license in Iran.

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