Halal certification is important for businesses as it automatically provides access to a substantial market of new customers, subsequently leading businesses to achieve growth, market expansion, and enhanced brand reputation.
With around 2 billion Muslims worldwide, the demand for halal certification now spans across food, cosmetics, pharmaceuticals, and packaging.
Here are 8 primary reasons why you should consider it essential for your business:
Get a Quote: Customized Halal Certification Quote!
Reason 1. It is the Fastest Growing Consumer Market
Halal consumers are not only the fastest growing consumer segments in North America, but also globally. According to research, the global halal market is projected to increase in value from $7 trillion now to $10 trillion by 2030.
Halal certification opens doors to this massive and lucrative demographic, giving your business the opportunity to tap into millions of consumers that match your target audience profile.
Reason 2. It Provides a Competitive Edge
In the competitive markets of today, differentiation is key. This is exactly what halal certification provides—-separating your products and services apart from the competition.
The halal symbol is a signal that your products meet stringent halal standards, which are not just about religious compliance but also about cleanliness, safety, and ethical sourcing.
This certification is a major deciding factor for consumers choosing between your product and a competitor’s. Therefore, displaying the halal certification logo will help your business acquire a competitive edge over rivals.
Read More: Halal Symbol On Food: More Than Just a Logo
Reason 3. It Increases Profitability
Investing in halal certification can lead to significant financial returns, as highlighted by businesses that have already seen increased sales and market share through certification.
Halal consumers are reported to be willing to pay a 13% premium on average for halal-certified products, which can significantly boost your profit margins.
This willingness to pay more for certified products reflects the high value placed on halal standards and the trust consumers have in these products, all of which you can represent by going through the halal certification process.
Apply Now: Online Halal Certification Application!
Reason 4. It Helps Expand into International Markets
Halal certification is not only important to target new consumers locally, but is also your ticket to the global market.
Countries with significant Muslim populations require Halal certification for imported goods, and by obtaining a well-accredited halal certification, you can access lucrative markets in Southeast Asia, the Middle East, and South Asia.
This opens up new avenues for growth and diversification, and also simplifies the export process, ensuring your products meet the regulatory requirements of these regions.
Read More: Halal Certification for Export to UAE, Saudi Arabia, and GCC/ MENA Countries
Reason 5. It Helps Align With Ethical Consumerism
Today’s consumers are more conscious than ever about the ethical implications of their purchases.
Halal certification aligns your business with values such as humane treatment of animals, environmental sustainability, and ethical sourcing.
These values resonate not just with Muslim consumers but also with a growing segment of non-Muslim consumers who prioritize ethical consumerism. By promoting your Halal certification, you can appeal to a broader audience that values integrity and social responsibility.
Read More: How Halal and Ethical Consumerism Go Hand-in-Hand
Reason 6. It Represents Inclusivity
Inclusivity is a powerful business strategy. By offering halal-certified products, you demonstrate that your brand is inclusive and respectful of diverse cultural and religious practices.
This creates a sense of belonging among Muslim consumers and positions your brand as culturally sensitive and aware, and is therefore 43% more likely to experience higher profitability.
In addition to that, inclusivity can also enhance your brand’s reputation, making it more appealing to a wider audience and building positive brand associations.
Read More: Halal Diversity: How Halal Certification Promotes Diversity
Reason 7. It Can Help Access Government and Institutional Contracts
Many government and institutional contracts require Halal certification. These contracts can be highly lucrative and provide steady revenue streams.
Even if your business is not currently likely to bid for a government contract, obtaining halal certification is still a strategic move. It will reduce the steps you need to take if an opportunity arises, streamlining the process and making your business ready to seize new opportunities quickly and efficiently.
Check Out: Government Facilities & Programs Certification
Reason 8. It Strengthens Brand Loyalty
Brand loyalty is built on trust and consistency. Halal certification helps reinforce both. When Muslim consumers see the halal logo, they know they can trust the product to meet their standards.
This trust translates into loyalty, as consumers repeatedly choose your brand over others, which is why Muslim consumers are 34% more likely to make repeat purchases.
Halal certification also encourages word-of-mouth referrals, as satisfied customers recommend your products to friends and family. Over time, this builds a loyal customer base that continues to support and advocate for your brand.
Read More: Consumer Loyalty Trends and Halal
Get a Free Consultation!
To put it in a nutshell, halal certification is important as it opens doors to new markets, enhances profitability, and aligns your brand with ethical consumerism.
Whether you’re a food manufacturer, a cosmetics company, packaging manufacturer, or in the pharmaceuticals industry, halal certification will transform your business and drive growth.
At AHF, we are committed to helping businesses achieve halal certification and access these benefits. Fill out this halal certification application in 5 minutes to get a free AHF consultancy session!
Frequently Asked Questions (FAQs)
Q. Who needs Halal certification?
A: Any business that wants to cater to Muslim consumers can benefit from Halal certification. This includes food and beverage companies, cosmetic brands, pharmaceutical firms, and more.
Q. How long does it take to get Halal certification?
The time required for Halal certification varies depending on the complexity of the products and the certification body’s procedures. It can take a few weeks to several months.
Q. Is Halal certification expensive?
The cost of Halal certification depends on the product type, the certification body, and the region. However, the investment often pays off through increased sales and market access.
Q. How can I get Halal certification for my business?
A: To get Halal certification, you need to apply to a recognized certification body like the American Halal Foundation. The process involves an assessment of your products and processes to ensure they comply with Halal standards
Azmi is a seasoned content and client development associate with a passion for art, history, travel, and halal lifestyle. With a sharp eye for detail and an in-depth understanding of evolving market trends, he brings his expertise and enthusiasm to the American Halal Foundation to create impactful content that resonates with a diverse audience.