NZ firms could make billions in Halal market
Fri, 13 Jul 2012 7:36a.m.
By Adrien Taylor
New Zealand firms could be making billions from doing more business in the lucrative Asian Halal economy.
But right now, the New Zealand Asia Institute says kiwi exporters aren't doing enough to reach the growing number of Muslim consumers throughout Asia.
Auckland-based company Burger Fuel is a developing success story when it comes to expanding in Muslim markets.
The Burger franchise has eight stores scattered throughout the Middle East and plans to keep on growing.
Burger Fuel worldwide marketing manager Alexis Lam says Muslim consumers like the products.
“They love the NZ produce and beef. They're really excited about having something that tastes quite different to the other beef products they have there and they're really comfortable with our Halal certification.”
Trade analysts say New Zealand is doing well when it comes to tapping into the Halal food sector but it is the billions of dollars in other sectors such as finance, IT, health products, cosmetics, travel and tourism they say we need to address.
However New Zealand Trade and Enterprise commissioner Fiona Acheson says complying with Halal standards may require less work than some imagine.
“It's not that New Zealand companies are making products that aren't potentially Halal-certified products but it's not something well-understood yet,” Mr Lam says.
Halal is what is deemed permissible to a Muslim, as defined by Islamic law and requires a specific way of slaughtering the animal.
Financial advisory firm KPMG now caters for the fast growing needs of Islamic businesses.
The firm says New Zealand has been typically reactive to the area, rather than proactive but it was becoming increasingly important.
As with all markets, there are costs and barriers to overcome when targeting the Halal economy, of which Burger Fuel has firsthand experience.
“In getting over to the Middle East there's a lot of paperwork that we've had to deal with, we've had a lot of shipments that have been held at the border,” Mr Lam says.
But the New Zealand Asia institute says there's enormous potential in Asian countries that New Zealand already has trade relationships with.
And with the Halal economy set for massive growth, ignoring it would be at the New Zealand economy's own peril.
A conference at the University of Auckland business school will kick off in a few hours bringing together Asian and New Zealand business leaders with a goal to push New Zealand’s presence in the lucrative Asian Halal economy.
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28/09/2012 10:48:17 p.m.
What is changing?
The global Muslim population currently stands at about 1.6 billion; by 2020 it is forecast to reach 1.9 billion about one quarter of total world population. The vast majority of Muslims live in Asia-Pacific and Africa, but there are also large and often rapidly growing Muslim populations in Western countries. the Muslim population are also younger than the global non-Muslim population, with about 60% under the age of 30; that is more than 8 million under 25.
Many are well educated and technology aware; they are entering not only the job market but prime consumer markets and want more freedom and self-determination but also reassurance that the goods and services they use support their values and beliefs. Halal certification is there to provide that reassurance.
Halal certification of products is growing. It is most widely known for its application to food stuffs, in particular meat, but it also covers product areas as diverse as finance, fashion, cosmetics, healthcare, tourism and the organisations which provide them. Halal certification is about reassuring consumers that the products or services which they are buying are pure, made with high quality ingredients, and that they conform to the standards and ethics which they aspire to – such as goodness and wholesomeness, cruelty free and at one with nature. Malaysia has taken a strategic decision to become the global leader in providing certification; Singapore, Brunei Indonesia and the USA are also investing.
Why is this important?
Currently, the global halal market for all products is estimated at $2.1 trillion, and growing at an estimated $500 billion per year – no company can afford to ignore an opportunity on that scale and many are gearing up to become lead players.
…this target market group is set to have grown 30% between 2010 and 2030, but it is anything but uniform – more like a mosaic…
Secondly, this target market group is set to have grown 30% between 2010 and 2030, but it is anything but uniform – more like a mosaic, with different needs, national cultures and contexts, generations and expectations ranging from the traditional to the forward looking, technology minded, fashion conscious. Products and services will need not only to be Halal, they will as ever need to meet all the conventional standards of relevance, quality, reliability, and price as well.
Demand for Halal products is also likely to rise among non-Muslim consumers. For example, the ethical approaches behind Sharia or Halal finance are likely to appeal to consumers fed up with the behaviour and performance of western banks and the impact of toxic assets – and indeed there are already signs that non-Muslim consumers are switching. Companies serving Muslim consumers may also want to follow Islamic banking standards to ensure that their whole supply chain, not just the end-product meets Halal standards – the same will increasingly apply to all aspects of the supply chain. A recent report on general global food trends highlighted purity, authenticity and sustainability as among the top 10; these correspond with the ethos of Halal – again, providing cross over opportunities.
Western companies are waking up to this enormous opportunity providing information and adapting their products, services and marketing; but so too are companies in emerging market economies and they are much closer to their potential customers. The race is on.
16/07/2012 2:26:32 p.m.
They do serve the halal beef (and chicken) in NZ as well, it is the same beef they export to the Middle East
13/07/2012 3:03:44 p.m.
Who gives a damn how its killed, meat is meat however the animal is killed. If they want things done their way they should pay extra for it or go home.
13/07/2012 10:45:41 a.m.
It would be great if Burger Fuels in NZ serves halal meats too.
This could be hugely profitable as muslims don't eat at other burger joints eg Mackers, BK etc
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