Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS
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What is Driving the Evolution of the Halal Market and How Can the Food Industry Innovate and Leverage the Trends and Emerging Opportunities of This Segment? Fi Asia MEGAtrends 2013 RJ. Liow Founder & CEO of AYS An Award Winning Manufacturer for Halal Ready to Eat Meals & Marketer
description
In AYS we aspire to build a sustainable business that goes beyond the conventional commercial platform. We want to play a part to create the most impact to the life of our consumers and society, Our goal is to be a trusted brand for International Business Advisory, Halal Eco-System, Specialty M.I.C.E & Halal RTE Meals provider - beyond religion boundaries, across nations, to create a truly "Borderless Future" for our clients and partners. Besides halal ready to eat meals, we have started a new and exciting business platform in 2013, ie to help companies and government trade organizations around the world to achieve their international business development goals. We generate leads, develop market entry and development strategies, identify and connect distributors and partners in our specialty markets – ASEAN, Middle East, China, Indian Subcontinent and Africa. Check out www.goinginternational.com.my for more information. We also provide the following services: 1. Training and consultancy services for setting up of Halal eco-system. Our focus is to provide advise and training to governments, as well as entrepreneurs around the world on halal compliance, management of a halal business, and marketing of halal products and services. 2. Coaching for owners/CEOs - a high level hand holding program for owners and CEOs of an organization, with special focus on corporate strategies and marketing of their organizations. With AYS, it's a borderless future!
Transcript of Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS
What is Driving the Evolution of the Halal Market and How Can the Food Industry Innovate and
Leverage the Trends and Emerging Opportunities of This Segment?
Fi Asia MEGAtrends 2013
RJ. LiowFounder & CEO of AYS
An Award Winning Manufacturer for Halal Ready to Eat Meals & Marketer of the Region’s Most Exciting Integrated Halal Ready to Eat Meals System
Key take outs on 4 aspects: 1.How are halal food trends evolving following the rising incomes and growing population of halal consumers that is expected to account for 30% of the world’s population by 2025?
2.What is the export market potential for the halal food market and are there emerging segments in this category?
3.How can the halal food industry innovate to meet changing market demands for greater food variety?
4.How can the integration of the halal food manufacturing industry and Islamic finance drive the industry further?
A glimpse of AYS
Our vision...
“A trusted global halal compliant products and services provider, and a halal business connector”
AYS created a
NEW category in the Malaysian F&B
industry:
Sri Kulai’sBRAND PROMISES..
No Added PreservativesNo Added MSG
Biodegradable Packaging
VoteS of VoteS of Confidence!Confidence!
A 1-InnoCert Double A’s A 1-InnoCert Double A’s Rating CompanyRating Company
Licensing of Sri Kulai RTE Licensing of Sri Kulai RTE Station: Low Cost, No Station: Low Cost, No kitchens!kitchens!
Media Media coverage: coverage: Print & TVPrint & TV
www.marketinghalal.com.my
Speaking engagements :EntrepreneurshipFMCG industryInternational market entry & development
Halal MICE provider (meeting, incentive, conference, exhibition)
Why participate in the global halal industry?
In AYS we see Halal beyond religion.
Once one understands Halal Toyyibban (what is permissible and wholesome), one will realize that halal as a concept could be
appealing to both Muslims and nonMuslims.
Halal New Economy
Halal Key Drivers of Growth
USD 2.1 trillion
Sizeable and growing Muslim
population
Sizeable and growing Muslim
population
Growing economic
development in Muslim countries
Growing economic
development in Muslim countries
Emergence of potential Halal
markets (China & India)
Emergence of potential Halal
markets (China & India)
Muslim population worldwide (2010) = 1.8 billion
Forecasted to grow at twice the rate by 2030 representing
27% of global population
“Between 1990 and 2010, GDP per capita for Muslims
worldwide has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8% (Global
CAGR: 5.0%).”
“Chinese Halal markets is worth USD2.1 billion and growing at 10.0% annually.”
Source: Islamic Association of ChinaSource: United Nation and IMFSource: Pew Research Centre
Diverse Sectors In The Halal Industry
Halal is a
VALUE
PROPOSITION
that exist within
key elements of
the supply chain
of the
intersecting
industry sectors
Global Market for Halal Products
FMCG sector
Global market for Halal-potential products, 2005**
• The Halal market has been quantified as the target market that can potentially be captured
• Approximately 67% of these Halal-potential products are categorized as fast moving consumer goods (FMCG)
• FMCGs in the primary meat and food sectors account for 62% of the market
Does not include Islamic Financial Services. Services involved in final product e.g. certification, logistics, R&D are included in sectorial values**Based on sales revenue***Halal processed food is taken as 66% of the total based on world Halal meat consumption****Only non-alcoholic beveragesSource: Euromonitor reports; FAOSTAT
100% = USD 2.1Trillion
Cosmetic &
Personal Care
The Halal Economy:
•Global halal trade: > US$2.1 trillion
•Halal trade: < 10% of global trade
•62% of the halal industry involve food
•Halal food 17% of global food industry
A BIG opportunity awaiting…
•Many Muslim worldwide do not have access to halal products
•Halal industry still in infancy
•A Blue Ocean strategy
Halal Food – the universal language
Supplying multi-cuisine and staple foods to Muslim & Non-Muslim globally
IndianCuisine
ChineseCuisine
WesternCuisine
WesternCuisine
WesternCuisine
Middle EastCuisine
Middle EastCuisine
IndianCuisine
The underlying principal for a Muslim diet food has to be:
•Halal: permissible & Syariah compliant
•Toyyibban: wholesome: healthy, safe, nutritious, quality
Target Markets for Halal Producers WHERE IS MUSLIM PURCHASING POWER? WHERE ARE MUSLIM CONSUMERS?
Source : Addressing the Muslim Market, A.T Kearney
Largest Muslim Population
Highest Purchasing Power Of Muslim
Population
Indonesia Saudi Arabia
Pakistan Turkey
India Iran
Bangladesh Malaysia
Turkey Qatar
Egypt Russia
Iran France
Nigeria Libya
China UAE
Ethiopia United States
Algeria Algeria
Morocco Singapore
Sudan Indonesia
Afghanistan Egypt
Iraq The Netherlands
Average growth of Muslim Population: 1.8% p.a
World population (1990 – 2030): Muslim
versus Non-Muslim
Muslim population worldwide (2010)
1.8 billion
Source: Phew Research Centre
Key markets for Halal food:
•Largest population of Muslim are located in Asia, both majority and non majority Muslim countries – high demand for halal food
•Markets in North Africa and Middle East – lucrative
•Growth countries: smaller Muslim population but concern on food quality and safety concerns eg Australia, US and Europe
Key markets for Halal food:
• Strong potential for halal certified products in non-majority Muslim markets – for safe and ethical products
• Europe: driven by France and the UK
• Australia/Oceania region: halal food market growth of 33% between 2009 and 2010
How can the halal food industry innovate to meet changing market demands for greater food variety?
•Large and increase population of Muslims adhering to halal requirements will fuel global demand for halal products.
•Busier lifestyle and increased incomes: widespread demand for convenience products that still conform to Islamic dietary laws.
•Ready to eat meal solutions become popular, a growing market for halal food manufacturers.
•Countries also influenced by global health and wellness trend – sparked demand for halal health products eg low fat, no MSG
New Potentials of Halal Market
(5%)
What are the reasons for recent growth in Islamic Finance?
1.Muslims opt for Shariah compliant products that were not previously available to them
2.Decision to opt for Shariah compliant structured investments making the conventional financial institutions consider using Islamic Finance
3.Increasing competitiveness and ethical focus, Islamic products are attracting both Muslims and non-Muslims
4.Islam as the fastest growing religion in the world, Islamic Finance is certainly not about to go away any time soon
How Islamic Finance support Halal food industry?
•Research •New product development•Halal parks•Working capital
Export by Malaysian Halal Certified Companies 2010 vs. 2011
Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
Period Total Exports-Halal (RM bil)
Overall Exports (RM bil)
Contribution (Halal)
2010 23.1 638.8 3.6%2011 35.4 694.5 5.1%
700 exporters (75% are SMEs)
Exports by Halal Certified companies contributed to 5.1% of overall exports for the period between Jan – Dec 2011
Note: Excluding crude palm oil
RM billion
Export by Malaysian Halal Certified Companies
Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
Export Value 2011
Ingredient RM 12.31 bil
Food & Beverage RM 11.92 bil
Palm Oil Derivatives RM 7.00 bil
Industrial Chemical RM 2.06 bil
Cosmetic & P.Care RM 1.81 bil
Pharmaceutical RM 0.29 bil
Products and export destinations: -
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For more information on AYS and speaking engagement:
www.ays.com.my
www.goinginternational.com.my
Tel: +60-3-6272 1707 or [email protected]
