The Halal industry is experiencing significant growth, driven by a rising global Muslim population and increased awareness of ethical and healthy food choices. The global Halal food market is expected to grow from US$2,488.50 billion in 2024 to US$ 4,116.57 billion by 2031, at a CAGR of 7.6%. Malaysia, leveraging its robust Halal certification and industry infrastructure, is strategically positioned to capitalize on this surge.
Malaysia’s Halal Export Prowess
Malaysia has long been a frontrunner in the Halal industry. The 21st Malaysia International Halal Showcase (MIHAS) aims to generate RM4.5 billion in global Halal trade for 2025, driven by its AI-powered Madani Digital Trade (MDT) platform. Beyond food, Halal certification is increasingly relevant in sectors like cosmetics, pharmaceuticals, and financial services.
Driving Export Growth
Malaysia co-hosted a promotional event in Nanning, China, to promote its premium and Halal products. As the ASEAN Chair in 2025, Malaysia is promoting ASEAN as a regional bloc in its relations with China and highlighted its efforts to host the first summit between ASEAN, China, and the Gulf Cooperation Council (GCC) in May. These initiatives enhance Malaysia’s export capabilities and strengthen its position in the global Halal market.
Halal Cosmetics: The Ethical Beauty Boom
The demand for Halal-certified cosmetics and skincare products is rapidly growing. Consumers seek assurance that their beauty products are free from haram ingredients and ethically produced. Cosmetic companies are now focusing on obtaining Halal certification, sourcing ethical ingredients, and marketing to Muslim consumers to tap into this expanding market.
Islamic Fintech: Sharia-Compliant Financial Solutions
The rise of Islamic Fintech presents significant opportunities in Sharia-compliant financial services. There is an increasing demand for Islamic financial products and services that adhere to Sharia principles. Businesses are exploring ways to offer Islamic financial solutions like interest-free banking, ethical investment funds, and Takaful (insurance), further fueling growth in the Halal sector.
Indonesia Aims to Lead
Indonesia is striving to become a leading producer of Halal products, with export transactions reaching US$64.11 billion in 2024. The Halal Indonesia International Industry Expo (Halal Indo) 2025 is scheduled for September 25–28, 2025, aiming to showcase Indonesia’s Halal industry.
Vietnam-Singapore Halal Trade
A seminar to boost cooperation in the Halal industry between Vietnam and Singapore is scheduled for May 24, 2025, in Hanoi and Singapore. The aim is to address the increasing global demand for Halal products. The Halal market is currently valued at approximately US$2 trillion and is projected to reach US$5 trillion by 2030.
Conclusion
The Halal industry’s growth is multifaceted, encompassing food, cosmetics, tourism, and financial services. Malaysia’s strategic initiatives, combined with the increasing global demand for Halal products, position it as a key player in this expanding market. As more countries recognize the economic potential of the Halal sector, the industry is set to experience further innovation and growth.