Halal certification inquiries in almost every major sector are skyrocketing. But what does that mean for your business?
Simply put, if you’re associated with the food, beverage, pharmaceutical, nutraceutical, or cosmetic industry, halal certification can be the key for you to significantly boost revenues.
In this article, we dive into the specifics of how halal certification can increase sales, its associated costs, and how you can get your products certified.
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Will You Experience an Increase in Halal Inquiries?
In the USA alone, the halal market share is expected to increase to $9.33 billion from 2021 to 2026, which translates to a roughly 6% increase in halal inquiries yearly.
The exponential demand for halal products has given birth to a rapidly growing market segment, and according to recent studies, the global halal market has already crossed $7 trillion in value.
Your business is expected to experience a substantial surge in halal certification inquiries due to a variety of factors including:
- Rising Muslim population
- Increased awareness of halal products
- Growing interest from consumers who perceive halal as more ethical
Read More: How Halal and Ethical Consumerism Go Hand-in-Hand
5 Revenue Growth Streams Through Halal Certification
As the demand for halal-certified products has already started to bubble in North America, getting halal-certified as soon as possible is a strategic business decision.
Here are 5 ways it can propel your revenue growth:
1. It will expand your reach:
By obtaining halal certification from a reputable organization like the American Halal Foundation (AHF), you will have access to a massively growing Muslim population.
In the USA itself, Muslim population is increasing by 100,000 annually, and is expected to become the second highest consumer segment by 2040.
2. It gives you a competitive advantage:
In a competitive marketplace, halal certification sets you apart from your competitors as it gives you access to a highly loyal consumer base. Muslim consumers are 34% more likely to make repeat purchases as compared to the average consumer.
3. It allows you to charge a premium:
Getting halal-certified will also enable you to price your products higher than non-certified alternatives as most Muslim customers are willing to pay 13% more for the assurance that the products they are purchasing meet strict halal guidelines.
4. It enhances your brand image:
Getting halal-certified will demonstrate your commitment to ethical and transparent practices. This resonates with today’s consumers, who increasingly value brands that align with their values. A positive brand image translates to increased sales and customer loyalty.
5. It opens up export opportunities:
Countries with significant Muslim populations often require halal certification for imported goods. By obtaining halal certification, you can tap into international markets in regions like the Middle East and Southeast Asia, which can substantially boost your global sales.
What Does Halal Certification Cost?
The exact cost of halal certification varies depending on two major factors, including:
- Product complexity: The complexity of your product or service will influence the certification process. Simpler products typically require a less intensive review.
- Company Size: Larger companies with more complex operations may incur higher certification costs as it requires more in-depth certification processes.
Get an exact halal certification quote in just 5 minutes here!
Read More: What Does Halal Certification Cost in 2024!
How to Obtain Halal Certification?
Obtaining halal certification is quite a straightforward process. Here’s a step-by-step guide to help you navigate getting halal-certified:
Step 1. Research and select a certifying body:
Different countries have various certifying bodies. Choose one that is reputable and recognized both locally and internationally. For businesses in the USA, the American Halal Foundation (AHF) is a leading certifier.
Step 2. Prepare documentation:
Gather all necessary documentation, including ingredient lists, manufacturing processes, and supply chain details. Transparency is crucial in this step.
Step 3. Initial inspection:
Once you submit your application, an initial inspection of your facilities and processes will be conducted by a halal auditor to ensure compliance with halal standards.
Step 4. Implement changes (if required):
Based on the inspection results, you may need to make changes to your processes or ingredients. This step is crucial to ensure full compliance.
Step 5. Halal training:
To ensure your staff is well-trained in halal standards and practices, this training is specifically provided by AHF to assure all employees maintain halal requirements in their daily operations.
Step 6. Final inspection and certification:
After implementing any required changes, a final inspection will be conducted. If everything is in order, your products will be certified halal.
Read More: The (Detailed) Halal Certification Process
Get a Free Consultancy Session!
Halal certification is indeed a strategic investment that opens up significant revenue growth potential.
The costs associated with certification are minimal compared to the potential revenue boost and competitive advantage it provides.
Interested in learning more about how halal certification can boost your revenues? Get in touch with our experts to get a free consultancy session!
Frequently Asked Questions (FAQs)
Q1: What types of products can be halal certified?
A1: Halal certification applies to a wide range of products, including food and beverages, cosmetics, pharmaceuticals, and even cleaning products. Any product that meets the dietary and ethical standards of halal can be certified.
Q2: Is halal certification recognized internationally?
A2: Yes, halal certification from recognized certifying bodies like the American Halal Foundation is accepted globally, allowing your products to enter international markets.
Q3: What are the benefits of halal certification beyond increased revenue?
A3: In addition to boosting revenue, halal certification enhances brand reputation, builds consumer trust, ensures ethical standards, and provides a competitive edge in the market.
Q4: How often are halal compliance inspections conducted?
A4: Regular inspections are typically conducted annually, but the frequency can vary depending on the certifying body and the specific agreement with your business.
Q5: What happens if my product fails the halal inspection?
A5: If your product fails an inspection, the certifying body will provide detailed feedback on what needs to be corrected. Once the necessary changes are made, a follow-up inspection will be conducted.
Azmi is a dynamic content and client development professional at the American Halal Foundation, blending his passion for the halal lifestyle, history, and travel with sharp market insights. Known for his attention to detail and strategic approach, he crafts impactful content that drives engagement and strengthens AHF’s connection with global audiences.
