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Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS

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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!

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Halal New Economy: Fi Asia MegaTrend 2013 by Liow Ren Jan, Founder & CEO of AYS

  1. 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. 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?  
  3. 3. A glimpse of AYS
  4. 4. Our vision... “A trusted global halal compliant products and services provider, and a halal business connector”
  5. 5. AYS created a NEW category in the Malaysian F&B industry:
  6. 6. Sri Kulai’s BRAND PROMISES .. No Added Preservatives No Added MSG Biodegradable Packaging
  7. 7. VoteS of Confidence! A 1-InnoCert Double A’s Rating Company
  8. 8. Licensing of Sri Kulai RTE Station: Low Cost, No kitchens!
  9. 9. www.marketinghalal.com.my Media coverage: Print & TV
  10. 10. Speaking engagements : Entrepreneurship FMCG industry International market entry & development
  11. 11. Halal MICE provider (meeting, incentive, conference, exhibition)
  12. 12. Why participate in the global halal industry?
  13. 13. 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.
  14. 14. Halal New Economy
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. A BIG opportunity awaiting… •Many Muslim worldwide do not have access to halal products •Halal industry still in infancy •A Blue Ocean strategy
  20. 20. 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
  21. 21. The underlying principal for a Muslim diet food has to be: •Halal: permissible & Syariah compliant •Toyyibban: wholesome: healthy, safe, nutritious, quality
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. New Potentials of Halal Market (5%)
  27. 27. 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
  28. 28. How Islamic Finance support Halal food industry? •Research •New product development •Halal parks •Working capital
  29. 29. 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)
  30. 30. 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)
  31. 31. 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

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