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|30 October, 2018

Costly certification major challenge for global halal food sector: study

A single globally-accepted regulatory structure would be preferable

Packages of Halal food are displayed in a supermarket. Image used for illustrative purpose.

Packages of Halal food are displayed in a supermarket. Image used for illustrative purpose.

REUTERS/Stephane Mahe

Total Muslim expenditure on halal food grew to reach $1.3 trillion in 2017 from $1.25 trillion in 2016, but the lack of global alignment on certification increases costs and can destroy value, said new report the State of the Global Islamic Economy 2018/19.

There are over 300 officially-recognised halal certifiers globally but there remains limited oversight by impartial accreditation bodies, leaving substantial room for misrepresentation, said the report. 

Halal also falls below global best practices due to a lack of commonly-accepted standards among these numerous certifiers, which often result in duplicate certification costs and added complexity. 

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The study recommends the creation of a mutual framework and rationalising existing standards that vary due to differing schools of thought expecially with differences on animal stunning and machine slaughter.

A single globally-accepted regulatory structure is also preferable, it said.

In the area of oversight and regulation, it highlighted a handful of milestones in 2017, including the creation of Malaysia-based International Halal Authority Board (IHAB) and Turkey's new Halal Accreditation Authority (HAK). 

The State of the Global Islamic Economy 2018/19 report can be downloaded from here.

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Salaam Gateway is the global reference for Islamic economy intelligence, news, insights, information, and data. A joint partnership between Dubai Islamic Economy Development Centre and Thomson Reuters, the platform also contains the global database of companies in the halal, Islamic finance, and Islamic lifestyle industries. For more information visit www.salaamgateway.com 

© Salaam Gateway 2018

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