Japan is rapidly expanding its reach into the global Halal market, with Wagyu beef leading the charge. Sugimoto-Honten Co., a Kumamoto-based Wagyu beef producer, is seeing rapid growth in its exports to Islamic countries. This surge highlights a broader trend of the global halal market experiencing significant growth, driven by the increasing Muslim population and a growing awareness of halal products among non-Muslim consumers.
The Halal Market Opportunity
The term “halal” comes from Arabic and means “permissible” or “lawful.” In the context of business, halal refers to businesses and practices that adhere to Islamic principles and ethical standards as outlined in Sharia law. This extends beyond food to encompass various sectors, including finance, cosmetics, tourism, and pharmaceuticals. The global halal market is estimated to reach trillions of dollars by 2027, making it a lucrative target for businesses worldwide.
Japan’s Strategic Move
Japan’s focus on halal Wagyu beef is a strategic move to tap into this growing market. By adhering to halal standards, Japanese companies like Sugimoto-Honten are opening doors to Muslim-majority countries and attracting Muslim consumers globally. Other countries are seeing similar trends, with Malaysian entrepreneurs transforming New Zealand’s tourism landscape by pioneering halal-friendly travel experiences for Muslim tourists, and Afghanistan business sector eager to participate in Russia’s upcoming Kazan Halal Expo and Forum.
Trends in Halal Business
Several trends are shaping the halal business landscape:
- Halal Tourism: Destinations are increasingly catering to Muslim travelers’ needs, offering halal food options, prayer facilities, and Muslim-friendly hotels. Businesses looking to tap into this market should focus on providing tailored services.
- Halal E-commerce: Online platforms are making it easier for consumers to purchase halal-certified products. Successful halal e-commerce platforms are thriving, and businesses should explore strategies to succeed in this sector.
- Sustainable Halal Products: There is a growing demand for sustainable halal products, with a focus on ethical production and environmental responsibility. Organic halal-certified products and ethically produced animal products are gaining popularity.
Challenges and Opportunities
While the halal market presents significant opportunities, businesses must also navigate the complexities of halal certification and standards. Understanding the specific requirements of different countries and regions is crucial for success. Malaysia’s Department of Islamic Development (JAKIM) plans to establish a world-class halal certification body in the Philippines to boost the domestic halal industry and align it with international standards, showing the importance of standardized certification processes.
Conclusion
Japan’s halal Wagyu export boom is just one example of how businesses are adapting to meet the needs of the global Muslim population. As the halal market continues to grow, companies that prioritize ethical practices, sustainability, and customer needs will be well-positioned to thrive.