The Future of Halal Branding
What is Halal Branding
Halal branding involves developing and marketing products or services that adhere to Islamic law, including ingredients, manufacturing procedures, and ethical and social issues. It is applicable to businesses including food, beverages, supplements, cosmetics, fashion, and banking. A product or service must not include any forbidden components or practices in order to be certified Halal.
Importance of Halal branding in the Muslim market
In recent years, the Halal industry has grown rapidly, driven by the increasing demand for Halal-certified products and services. According to a report by the State of the Global Islamic Economy, the global Halal market was worth over $2.3 trillion in 2020 and is expected to reach $3.2 trillion by 2024. Halal branding has become a key factor in the success of Halal businesses, and its future will depend on embracing diversity and innovation.
Challenges in Halal Branding:
Halal brands, which comply with Islamic dietary laws, are facing unique challenges in the global market. One major challenge is the lack of a single global standardization and regulation system for Halal certification, leading to a degree of misunderstanding among Muslim consumers from different parts of the world.
Another issue is the perceived higher cost of making Halal products, which in fact is rarely true other than the need to substitute some supplier ingredients which may include pork or pork by-products or alcohol. To address these issues, manufacturers must invest in education and awareness campaigns with help from Halal certifiers that encourage a better knowledge of Halal products and certifications.
Halal Product Packaging and Labeling
One of the most important and highly value added aspects of Halal certification is to ensure that the Halal certifier’s logo mark is added and clearly visible on product packaging for the consumer to easily see and know the Halal status of the products and to know who the certifier is by their trade-marked logo. Using a generic Halal logo image does provide the same assurance, credibility and traceability of the product’s Halal status which leaves the door open for possible fraudulent misrepresentation of a product being genuinely Halal. The following images are all the property of Islamic Services of America (ISA) and can only be used by company brands and manufacturers under the expressed consent of ISA.
Innovative Strategies for Halal Branding
In today's competitive market, innovative strategies for Halal branding are essential to help businesses and products stand out from the rest of the crowd in a very competitive market. One effective approach is to focus on the unique benefits of Halal products, such as their health benefits, and attention to quality assurance through product packaging, labeling and advertising.
Another strategy is to use social media platforms to engage with customers and build a strong online presence. Brands can also collaborate with influencers and Halal-certification bodies to enhance their credibility and visibility through featured interviews, blogs and reposting of each other’s social media posts such as on LinkedIn.
Additionally, staying up-to-date with the latest market trends and consumer preferences can help brands stay relevant and adapt their branding strategies accordingly.
Emphasizing the importance of research and development in Halal branding
Halal branding has become an important component of the food and beverage industry in today's global market. Companies must focus research and development on their Halal products in order to generate a strong brand image and acquire consumer trust. This includes experimenting with new ingredients (e.g. flavors, spices, colors), adhering strictly to Halal standards, and undergoing thorough quality testing. Companies can demonstrate their dedication to providing high-quality, authentic products that fit the demands and tastes of the buyers, by emphasizing the effort and importance of research and development in Halal branding. This not only helps businesses generate brand loyalty, but it also adds to the overall growth and development of the Halal industry.
The Future of Halal Branding
The global Muslim population is expected to reach 3 billion by 2060, making the Halal market potentially lucrative. Companies that cater to the demands of Muslim consumers not only acquire their trust and loyalty, but also attract to non-Muslims looking for ethical and sustainable products. As the Halal industry evolves, emerging technologies such as block chain are being incorporated to enhance transparency and traceability of Halal products, hence increasing consumer trust.
Increasing demand for Halal products and services
In recent years, there has been a significant increase in the demand for Halal products and services across the world, especially in Muslim-majority countries. This surge in demand is driven by the growing awareness of the importance of Halal products and services among the Muslim population. Additionally, the increasing globalization of trade and commerce has made it easier for Halal products to be marketed and distributed globally, providing a boost to the Halal industry. Halal covers a wide range of products and services, from food and beverages to cosmetics and pharmaceuticals and non-consumables such as chemicals, lubricants, filters etc.
Halal certification plays a crucial role in ensuring the integrity of Halal food products and services, Islamic Services of America (ISA), based in the United States, plays an important role in the Halal industry as an educator and certifier, by partnering with companies that produce both consumables and non-consumables, ISA certifies those products that are Halal-compliant.
a) Growing Muslim population and purchasing power
According to a report by Pew Research, the global Muslim population is expected to grow by nearly 30% over the next three decades. This significant increase in population size is accompanied by a proportional rise in purchasing power. The Muslim consumer market is estimated to be worth around $2.2 trillion, with a projected increase to $3.8 trillion by 2024.
b) Potential for Halal branding to drive social development
Halal branding has immense potential to drive social development. It adheres to Islamic principles and appeals to a vast and growing market, contributing to economic growth. It promotes ethical and sustainable practices, creates jobs, and supports local communities, satisfies the physical and moral needs and tastes of consumers, thus improving people's lives overall. It also enhances cultural understanding and fosters tolerance which is essential in a globalized world. Harnessing Halal branding's potential can create a better future for all.
With the increasing awareness and recognition of Halal certification, more companies are now looking to tap into the lucrative Halal market. As the Muslim population grows, the Halal industry is expected to expand further, creating new opportunities for businesses to cater to this demographic. Additionally, the Halal industry is not limited to food and beverages but also includes fashion, beauty, and other sectors, making it a diverse and dynamic market. Overall, the future of Halal branding is bright, and companies that invest in this market are likely to reap significant rewards in the long run.
Islamic Services of America (ISA) is a leading USA based Halal certification and auditing organization serving companies, the community, and the Halal industry for over 45 years. Contact ISA at firstname.lastname@example.org or visit the ISA website for more information at https://www.isahalal.com/
picture credit: www.pexels.com, ISA