Evolution of Halal Consumption: Beyond Religion to Well-Being and Ethics

The Korea International Trade Association (KITA) announced on the 5th that the global halal consumption market is shifting beyond traditional religious criteria to encompass a complex landscape of well-being, ethics, and values. This evolution is particularly evident among younger Muslim consumers, who are increasingly sensitive to halal certification, prompting domestic companies to devise tailored entry strategies that reflect various national and generational consumption characteristics.

According to KITA's report, titled ‘Analysis of Halal Market Trends and Consumer Awareness,’ the halal consumer market is broadening its scope from traditional food categories to include non-food segments such as pharmaceuticals, cosmetics, and baby products. This diversification offers significant business implications, as even non-Muslim consumers are now embracing health, hygiene, and ethical consumption, presenting new revenue opportunities for brands.

The report's survey, which examined 1,200 consumers from five key halal markets, revealed that 78.8% of respondents consider halal certification a crucial factor during purchase decisions. Notably, this figure rises to 82% among consumers in their 20s and 30s, highlighting the importance of targeting this demographic. Country-specific preferences also emerged, with consumer priorities for halal certification highest in Indonesia (59.8%), Malaysia (58.8%), and the UAE (50.0%), illustrating regional nuances that may dictate entry strategies for distributors and retailers.

Moreover, awareness and purchasing experiences regarding Korean products within these markets appear robust, as 83.0% of participants reported having previously purchased Korean consumer goods, with the popularity of Korean Wave content driving influence in 66.2% of responses. Nevertheless, 46.1% of respondents cited a lack of available retail outlets and distribution challenges as barriers to purchasing Korean products, underscoring the need for enhanced market access and product experience to foster long-term customer loyalty.

The report identifies significant trends within the halal market, encapsulated by the acronym ‘R.I.S.E,’ which stands for Regionalization, Innovation, Segmentation, and ESG (Environmental, Social, Governance) values. As boycotts against Western global brands have grown due to political and religious issues, there is a marked shift toward local brands. This regionalization trend is expected to reshape competitive dynamics, offering an opportunity for brands to differentiate themselves through local partnerships and tailored offerings.

In a rapidly evolving landscape, KITA emphasizes that Korean businesses must adopt comprehensive strategies that account for varying consumer characteristics by country, generational preferences, and item-specific certification awareness. Key strategies highlighted include empathy-driven marketing aimed at younger Muslim consumers, clear product positioning based on demographic insights, collaboration with local firms to establish offline distribution networks, and capitalizing on niche, high-value segments like baby products and health-related offerings.

Team Leader Park Jin-woo of KITA stated, “The expansion of the Korean Wave has heightened interest among young halal consumers in Korean products. To translate this interest into actual purchases and repeat business, securing distribution channels that enable local consumers to experience products directly is essential, along with a solid localization strategy.”