Drivers of the Islamic Global Economy - factors substantiating investment & exports.
The global Muslim population is expected to grow from 1.7 billion in 2014 to 2.2 billion by 2030 (+29.4%), growing at about twice the rate of the non-Muslim population, with an average annual growth rate of 1.5% for Muslims and 0.7% for non-Muslims.
Increasing religious affinity
Globally, Muslim consumers are increasingly pushing for Halal products and services, with a Pew Research Center survey conducted in 2011 of over 38,000 Muslims, finding that 76.3% of Muslims consider religion to be ‘very important’ and 96% of Muslim travelers consider Halal food to be critical, based on a 2016 COMCEC survey.
Across regions, Halal is an important dietary restriction to 48% of consumers in the Middle East and Northern Africa (MENA) region, 12% in the Asia Pacific, and 1 to 4% across other regions, according to a Nielsen Survey, driving an ecosystem of start-ups addressing their needs.
While Muslim consumers are not identical in their religious preferences, with varying shades of adherence, there is broader push for lifestyle products and services to better address faith-inspired needs.
Growing role of ethical consumerism
The Islamic Economy sectors address the broader ethical needs of non-Muslim consumers. Ethical considerations are becoming increasingly important for all consumers with 66% of consumers willing to pay more for higher priced, ethical products, giving rise to Halal organic brands, that serve a broader segment of ethical consumers.
Multinationals continue to drive Islamic economy’s global appeal
The increasing participation of multinationals in the global Halal food industry, led by sizeable companies such as Nestlé, Cargill, BRF and Abbott, signals the important role of the Islamic economy in driving growth for businesses of all sizes.
Dependency of imports from Non OIC countries.
The OIC group of countries is overall dependent on food imports.
OIC food exports in 2018 totaled $117.2 billion versus food imports of $184.2 billion, creating a food-pertinent trade gap of almost $67 billion.
OIC food imports from OIC member countries accounted for $34 billion, constituting only 18% of the total food imports in 2018. This highlights the region's import dependency on non-OIC countries.
OIC governments are increasingly scrutinizing the Halal integrity of products imported into OIC countries, increasingly requiring Halal certification of ingredients, led by top OIC consumption markets, including but not limited to Indonesia, Malaysia and Saudi Arabia.
The regulation of certifiers is also intensifying with the increasing accreditation
of international certifiers, led by Saudi Arabia based GCC Accreditation Centre & UAE-based Emirates International Accreditation Centre (EIAC).
Reference: State of the Global Islamic Economy Report 2019/20, Global Islamic Economy Key Drivers, Pg 11 & 12