Prospects for Iran in global halal market

The burgeoning halal economy, estimated worth $3.2 trillion, is growing at nearly double the global rate where a demographic surge in the Muslim population has amplified demand for halal-certified products.

The halal market refers to the production, distribution, and consumption of food and beverages that comply with Islamic dietary laws. 

Because of their emphasis on clean practices, sustainability, ethical behavior, and superior quality, halal products are no longer exclusive to the Muslims only, garnering increasing acceptance also among non-Muslim consumers.

The halal industry, meanwhile, is no longer confined to food and food related products. It covers a broad reach of sectors and products ranging from pharmaceuticals, cosmetics, healthcare products, toiletries and medical devices to logistics, marketing, print and electronic media, packaging, branding, and financing.

Iran’s place in future of evolving halal tourism

The group of Developing Eight (D8) Islamic countries will meet in Pakistan’s mountain resort city of Murree next week to discuss strengthening tourism cooperation among the member states.

As such, the worldwide halal market is undergoing a radical change where countries regardless of geographical location or religious affiliation are setting up or expanding business of Islamic-compliant products.

Brazil, for example, is the largest exporter of halal meat, followed by Australia and India. Other big non-Muslim exporters of halal meat are France, China, the Netherlands and Spain. Meanwhile, top leading exporters of halal foods are Brazil, India, the US, Russia and Argentina.

The list of the countries spanning almost every part of the world provides an overview of the landscape for collaboration where Muslim nations can take advantage of this important opportunity to forge better commercial and economic relations.

Iran’s suitable capacities make it an ideal candidate to become one of the pioneers in the production and supply of halal food products. As a country where the teachings of Islam embrace all aspects of life, Iran is best placed to play a major role in halal business.    

Like in many Muslim countries, halal food has a special place in the lives of Iranians and is intertwined with their lifestyle, given the effect it has on the improvement of soul and body.

Any product with a high health index is halal. In today's vernacular, halal is a symbol of purity, health, safety, and quality, opposite to haram, which is any product or service that is harmful to human health.

Iran produces about 83% of its annual food needs domestically. Based on the Food and Agriculture Organization of the United Nations (FAO) data, the Islamic Republic is the third-largest producer of dates, honey, pistachios, and walnuts in the world.  

Iran’s exports of high-quality food to Muslim countries, mainly Afghanistan and Iraq, are put at about $2 billion which is less than one percent of the global halal food turnover.

Malaysia has been a global market leader in the halal food industry, followed by Saudi Arabia, Turkey, Bahrain, Indonesia, Egypt and Iran, indicating how much this important cultural and economic sector has been neglected by Iranian producers.

Iran also has a strong industrial base in pharmaceuticals, cosmetics and fashion where the production of halal shoes, leather and wool has a long tradition.

Leather units, actively operating in three strategic areas of Tehran, Tabriz and Mashhad, consist of 350 going concerns which produce 2.5 million pieces of cow and calf hides equal to 70 million squares.

Iran’s push to revive footwear industry

Iran is the 11th footwear producer in the world and the largest producer and consumer of shoes in West Asia, with a capacity to turn into a hub of raw materials and exports.

According to food industry experts, demand for non-alcoholic beverages has also increased quite a bit across the world, putting Iranian producers in a pole position to capture a greater share of the market by building capacity for their halal products.

Islamic finance, halal education, tourism and media and halal entertainment include the cultural aspects of halal lifestyle which is promoted and practiced in Iran.

The number of licenses issued for halal labels on food, drugs and cosmetics has risen from under 100 to more than 1,000 over the past three years, allowing Iranian producers to export their commodities.  

The halal market is still very young and developing, but  the growing size of the Muslim population has made it a major demand point. Over the past ten years, it has experienced a spike in interest, creating new prospects of prosperity for businesses.

For now, state planners have set a target to move Iran to the third place among Muslim countries in halal industry.

To improve Iran's position, the importance of halal as a cultural, commercial and economic concept should be thoroughly explained first. The country should then compile a document for halal ecosystem development and establish a single custodian to implement it.  

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