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!
Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS
1. 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 of the Region’s Most
Exciting Integrated Halal Ready to Eat Meals System
2. 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?
14. 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.
16. Halal Key Drivers of Growth
USD 2.1 trillion
Sizeable and
Sizeable and
growing Muslim
growing Muslim
population
population
Growing
Growing
economic
economic
development in
development in
Muslim countries
Muslim countries
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%).”
Source: Pew Research Centre
Source: United Nation and IMF
Emergence of
Emergence of
potential Halal
potential Halal
markets (China &
markets (China &
India)
India)
“Chinese Halal markets is
worth USD2.1 billion and
growing at 10.0% annually.”
Source: Islamic Association of China
17. 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
18. Global Market for Halal Products
100% = USD 2.1Trillion
FMCG sector
• The Halal market has
been quantified as the
target market that can
potentially be captured
• Approximately 67% of
Cosmetic
&
Personal Care
these Halal-potential
products are
categorized as fast
moving consumer
goods (FMCG)
• FMCGs in the primary
Global market for Halal-potential products, 2005**
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 beverages
Source:
Euromonitor reports; FAOSTAT
19. 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
20. A
BIG opportunity awaiting…
•Many Muslim worldwide do not have
access to halal products
•Halal industry still in infancy
•A Blue Ocean strategy
21. Halal Food – the universal language
Western
Cuisine
Western
Cuisine
Middle East
Cuisine
Middle East
Cuisine
Indian
Cuisine
Chinese
Cuisine
Indian
Cuisine
Western
Cuisine
Supplying multi-cuisine and staple foods to
Muslim & Non-Muslim globally
22. The underlying principal for a Muslim
diet food has to be:
•Halal: permissible & Syariah compliant
•Toyyibban: wholesome: healthy, safe,
nutritious, quality
23. Target Markets for Halal Producers
WHERE IS MUSLIM PURCHASING POWER?
WHERE ARE MUSLIM CONSUMERS?
Largest Muslim
Population
Highest Purchasing
Power Of Muslim
Population
Indonesia
Saudi Arabia
Pakistan
Turkey
India
Iran
Bangladesh
Malaysia
World population (1990 – 2030): Muslim
Turkey
Qatar
versus Non-Muslim
Egypt
Russia
Iran
France
Nigeria
Libya
China
UAE
Ethiopia
United States
Algeria
Algeria
Morocco
Singapore
Sudan
Indonesia
Afghanistan
Egypt
Iraq
The Netherlands
Source : Addressing the Muslim Market, A.T Kearney
Average growth of Muslim Population:
1.8% p.a
Muslim population worldwide (2010)
1.8 billion
Source: Phew Research Centre
24. 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
25. 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
26. 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
28. 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
29. How Islamic Finance support Halal food
industry?
•Research
•New product development
•Halal parks
•Working capital
30. Export by Malaysian Halal Certified Companies 2010 vs. 2011
RM billion
700 exporters (75% are SMEs)
Note:
Excluding
crude palm oil
Exports by Halal Certified companies contributed to 5.1% of overall exports for the period between Jan – Dec 2011
Period
2010
2011
Total Exports-Halal
(RM bil)
23.1
35.4
Overall Exports
(RM bil)
638.8
694.5
Contribution
(Halal)
3.6%
5.1%
Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal)
31. Export by Malaysian Halal Certified Companies
Products and export destinations: Industrial
Chemical
5.8%
Cosmetic &
P.Care
5.1%
Palm Oil
Derivatives
19.8%
Pharmaceuti
cal
0.8%
Ingredient
34.8%
Food &
Beverage
33.7%
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
Source: HDC, Department of Statistic, JAKIM, Custom
Department & MATRADE (Jawatankuasa Penyusunan Statistik
Produk Halal)
32. For more information on AYS
and speaking engagement:
www.ays.com.my
www.goinginternational.com.my
Tel: +60-3-6272 1707 or info@ays.com.my
32
Editor's Notes
The global Halal business is expected to grow in tandem with the following key drivers:
Firstly, the sizeable Muslim population and increasing population growth;
- There are more than 1.8 billion Muslim population worldwide.
- By 2030, it is forecasted that the Muslim population will grow at twice the rate and representing more than one quarter of the global population.
Secondly, the growing economic development in Muslim countries;
- Growing economic development in Muslim countries has seen the Muslim purchasing power catching up with their non-Muslim counterparts.
- Between 1990 and 2010, Muslim GDP per capita worldwide has grown at a Cumulative Annual Growth Rate of 6.8% as compared to the global GDP per capita which is only at a CAGR of 5.0%.
Last but not least, the emergence of potential Halal markets, most notably India and China with huge Muslims population.
- According to the Islamic Association of China, the Chinese Halal markets is worth USD2.1 billion and growing at 10% annually
Total export excluding CPO in 2011 is RM35.4billion which is 5.1% of the overall Malaysia export of RM694billion.
The major export destinations were China (RM 4.1 billion), USA (RM 3.3 billion) and Singapore (RM 2.9 billion).
The main halal products exported were Halal ingredients totaling RM12 billion followed by Food and Beverage (RM 11.9 billion) and Palm Oil derivatives (oleo chemicals) RM 7 billion.