Halal Industry: Are The Businesses Fully Awake?

Abstract

Nowadays, organisations are involved in intense competition to sell their products and services globally. The current target market covers nearly every country in the world, including Islamic countries. For example, Japan and Australia are putting great effort into catering to a rising number of Muslim clients by increasing their investment and expertise in halal products and services. Their aim is to attract the attention of the growing Muslim population to add a billion by 2050. Halal products include food and beverages, personal care, cosmetics, pharmaceuticals and health products. Meanwhile, halal services comprise areas such as Islamic finance, takaful, travel, education and healthcare. Subsectors such as media, consulting, events, online services, software development, logical services and lab testing can also benefit from the growth of the halal sector as a whole. The authors will attempt to achieve two objectives in this paper: (i) to examine current literature and (ii) to determine the success factors of and issues faced by halal businesses. The Malaysian government’s intention is not only to support the halal industry in terms of complying with regulations set by the authorities and obtaining the relevant certification; the output must also meet international standards to supply consistently high-quality products and services to win customers’ hearts.

The role of trust and perceived risk on Muslim behavior in buying halal-certified food

“…2.1 Halal-certified food "Halal" is a term used to designate anything known as permissible and lawful according to the Islamic religion (Asnawi et al, 2018). To know what products are permissible to eat and drink, Muslims pay special attention to the halal status of food and drinks (Wahab and Kamarubahrin, 2019). Halal status of food is obtained from authorized institutions (such as the Indonesian Ulema Council in Indonesia) after carrying out a series of inspections and assessments based on established rules and regulations.…”

Eating halal: a serial mediation model for the effect of religiosity on the intention to purchase halal-certified food

“…According to Wahab and Kamarubahrin (2019), by being more aware of what products they should eat and drink, Muslims have placed particular attention upon the halal status of food. This has increased the demand for guaranteed halal food in terms of what is manufactured (Ab Talib, 2017).…”

Trade diversion risk for halal food exports

“…As traditional markets reach their maximum capacity, the emergence of a Halal market will create a new paradigm of commercial value that in this case is dominated by food and beverage sector and recently expanded into pharmaceutical sector, cosmetic and personal care (Bashir et al , 2019; Hamid et al , 2019). Moreover, there is an increasing demand for Halal products and services among non-Muslims (Bashir et al , 2019; Wahab and Kamarubahrin, 2019). Furthermore, Bashir et al (2019) find that the food industry has become more aware about the manufacturing of Halal products.…”

“…The overall growth of the global Halal market was rationalized by Ab Rahman et al (2011) (as mentioned by Yusuf et al , 2016) because of the increase in the disposable income, urban areas and growing popularity of eating out. Malaysia’s competitive advantage in the Halal food industry was attributed to consequent measures taken by the government, e.g., Halal plan to solve the issues of certification, sectored development, Halal integrity, implementation and timeframes and responsibilities (Bohari et al , 2017; Wahab and Kamarubahrin, 2019). Hence, this study uses Malaysia as a major supplier of Halal food and commodity for analyzing the trade potential of the growing Halal market.…”

“…To summarize, Halal certification positively influences firm performance. Moreover, consumer awareness towards their religious obligation creates a considerable demand for Halal products and will impact their purchasing behaviors (Bashir et al , 2019; Hamid et al , 2019; Wahab and Kamarubahrin, 2019).…”