Halal is not just about food, it also includes the medicines people consume.
Come to think of it, a market of 2 billion consumers that is still largely untapped, is not trivial, right? With a demographic that’s growing both in numbers and in purchasing power, the halal pharmaceutical sector is has big potential.
The global halal pharmaceuticals market size was valued at almost $100 billion in 2019 and is expected to cross $200 billion by 2024.
Intrigued? You should be.
Let’s dive into the untapped market for halal pharmaceuticals and explore why it’s such a goldmine.
- 1 What are Halal Pharmaceuticals?
- 2 Why are Halal Pharmaceuticals Important?
- 3 How to Tap the Halal Pharmaceuticals Market?
- 4 The Future is Bright
- 5 Get in Touch
- 6 Featured Insights
- 7 Get in Touch
What are Halal Pharmaceuticals?
Before discovering the potential of the halal pharmaceuticals and how to tap this market, first let’s sort out what halal pharmaceuticals mean.
Halal pharmaceuticals are medicines that comply with the Islamic law and do not contain any ingredients that are forbidden (haram) such as alcohol, pork, or animal-derived substances.
Halal pharmaceuticals are expected to maintain high standards of quality and purity throughout its manufacturing and packaging process, which is also why they are considered to be safe and effective.
Why are Halal Pharmaceuticals Important?
Is it really worth making all the effort to penetrate the halal pharmaceutical market? Yes, it is and we’re here to tell you why. Here are two key lucrative aspects that have us the most excited over halal pharmaceuticals:
Let’s talk numbers here. There are around 2 billion Muslims in the world right now, making up 24.1% of the global population. This number is expected to increase to 2.9 billion by 2060, reaching 31.1% of the world’s population.
In addition to that, Muslims are also the youngest and fastest-growing religious group, with a median age of 24 years and a growth rate of 1.8% per year. A younger population means a high customer lifetime value of consumers.
Despite sharing different cultures and languages, what all of the Muslim demographic has in common is a demand for halal products, meaning there is significant potential in the halal pharmaceuticals market, especially in the longer run.
Along with the demographic growth, Muslims are also experiencing an increase in their disposable income and purchasing power. Muslim consumer spending on halal products and services was estimated at $1.26 trillion in 2021, and is projected to reach $3.2 trillion by 2024.
Among the various sectors of the halal economy, pharmaceuticals accounted for $94 billion in 2019. However, this represents only a fraction of the global pharmaceutical market, as this is still a relatively untapped market with many consumers not yet fully aware of the availability of halal pharmaceutical products.
This indicates that there is a huge potential for halal pharmaceuticals to capture a larger share of the global market, especially after the COVID-19 pandemic, which has propelled consumers all over the globe to spend more on healthcare.
How to Tap the Halal Pharmaceuticals Market?
Now that you have some idea of why we’re so psyched about the halal pharmaceutical market, you must be wondering how you can penetrate this market to gain that competitive edge.
We’re here to tell you exactly how you can do that. We like to keep it simple, so here are 3 steps you can take to start
catering to the halal pharmaceutical market:
1. Get Halal Certification
First and foremost, getting halal certification for your pharmaceutical products is a must. Halal certification for pharmaceuticals is a process of verifying that your products meet the requirements of Islamic law and are permissible for consumption or use by Muslims.
Halal certification is issued by authorized bodies that have expertise in Islamic jurisprudence and technical knowledge of the product or service. Make sure to choose a reputable and globally recognized halal certification body to ensure that your products meet the highest standards.
Halal certification is essential for gaining trust and confidence from Muslim consumers, as well as accessing markets that have mandatory halal regulations, such as Malaysia, Saudi Arabia, Indonesia, UAE, Turkey, Pakistan and many others.
2.Focus on Key Markets
Muslims accumulate to be 2 billion in population, which naturally means they are unlikely to be very homogenous in characteristics. Muslims reside all over the world, from Asia-Pacific, Middle East, North Africa, Sub-Saharan Africa, to Europe and America too.
All of these regions have diverse cultures, languages, income levels and health needs. Therefore, you as a pharmaceutical manufacturer, need to identify and target the key markets that have the most potential for growth and profitability for your particular products.
At the moment, focusing on markets that have the highest standards for halal consumption would be a good starting point. Some of the countries that represent this criteria are Malaysia, Saudi Arabia, Australia, Pakistan, Indonesia and Singapore. All of these countries have strong Muslim populations, high income levels, supportive government policies and well-developed halal ecosystems.
3.Leverage Digital Tools to Educate Consumers
One of the main reasons why the halal pharmaceuticals market is still untapped is due to the lack of awareness and knowledge among consumers about the benefits and availability of halal medicines. Many consumers are unaware of the ingredients and sources of conventional medicines, or assume that all medicines are halal by default.
To overcome this challenge, you can leverage digital tools such as websites, social media platforms, and content marketing to educate consumers about the availability and advantages of halal pharmaceuticals. By using digital tools, you as a halal pharmaceutical provider can reach a wider audience and effectively increase your brand visibility and credibility.
You can also transparently provide information about your products’ ingredients, sources, processes and certifications, using informative advertising to raise more awareness regarding halal pharmaceuticals and consequently attract more consumers.
The Future is Bright
As the Muslim population continues to grow both in numbers and in purchasing power, the demand for halal-certified products will only increase and this will most certainly also involve pharmaceutical products.
It is clear that the future is bright for halal pharmaceuticals. But that’s not all that tapping into the market can provide, it also offers a win-win solution for both producers and consumers, as well as for society and the environment since halal pharmaceuticals need to adhere to ethical and sustainable practices stringently.
To get started, all you need to do is get halal certification from a trusted organization to start building your credibility to tap into this lucrative market.
If you are interested in getting your halal certification sorted soon, get in contact with the American Halal Foundation (AHF) for a consultation and let them help you navigate your breakthrough into the halal pharmaceuticals market.