Halal: A Firm Quality Promise

The world is fast warming up to the concept of halal. If anything, the COVID-19 health crisis has reiterated the importance of clean and safe products, which is central to the halal industry. In halal, extraordinary focus is put on sanitation and cleanliness, precautionary measures in battling this pandemic; criteria that are strongly embedded within the halal business operation and production processes. […]

Going Global 

Obtaining a halal certification is one of the most sought-after recognitions among food players with a global ambition. Even in countries where Muslims are in minority such as in Europe and America, growth expansion in the halal industry has made governments recognize the need to regulate the market. The halal certification goes further in ensuring halal companies will be able to compete not only domestically but in foreign markets as well, giving their products more access and consumer confidence.

The US – halal occupies a rapidly growing market segment. The Muslim population, estimated at 3.45million in 2017, is expected to grow at an accelerated rate to 8.1 million by 2050. This year, the country’s halal food market is estimated at US$450.4 billion. A leader in the halal food industry, Midamar Corporation, understands its customer base; having introduced a range of halal-certified white and wheat bread, hot dog and hamburger buns in 2018. Midamar’s bread and buns are baked using a halal-certified process, with halal-certified plant-based ingredients. Other bakery brands endorsed by the Islamic Food And Nutrition Council of America include Kontos Foods, Olympia Food Industries and Sara Lee Bakery; while halal-certified bakery products can be found on shelves in Walmart, Meijer, Jewel-Osco and Whole Foods Market, one of the pioneers in the halal food industry. You’ll also find halal-certified family-run commercial bakery products such as California Lavash’s flatbreads – lavash, naan and pita – carried in grocery stores. 

The UK – Muslims make up a significant minority, approximately 5% of the total UK population. UK supermarkets already offer a comprehensive range of kosher, gluten-free and organic foods – halal selections may not be as extensive as some of these other niche markets. Tesco, Sainsbury’s, Marks & Spenser, Waitrose, Morrisons and Subway are some of the few that are oriented towards halal food, selling halal meat, as well as halal confectionery, breads, cereals and snacks. Subway is the second ranked fast food company for bakery products in the country. Many leading brands are accommodating the increased demand for halal. For instance, Kingsmill is officially certified as halal compliant– an accreditation that comes with the Halal Food Authority logo, denoting that all Kingsmill bread and bakery goods are permitted under Islamic dietary guidelines. Kingsmill’s adaptability and willingness to seek a halal label, whilst maintaining its traditional British identity, has helped to stabilise its position within the UK packaged bread sector. Guenther Bakeries UK Ltd is another halal-certified bakery producer. 

Spain – the country’s top-notch brand, Cerealto Siro, offers sliced bread and a range of halal-certified biscuits, from chocolate biscuits and breakfast biscuits to gluten-free, wafers and healthy biscuits. With a presence in 50 countries and a production of 374,000 tons per year. 

Japan – Bourbon Alfort biscuit, made from whole-grain flour mixed with rich milk chocolate filling and other halal-friendly ingredients is halal-certified. It is a popular snack for high tea, or can be savoured on its own. 

India – Global Total Foods Company Britannia Industries is an ubiquitous local brand founded in 1892; and the first Indian food company to remove trans-fats from its entire portfolio. It has since taken the lead in providing micronutrient fortification in 47% of its products. Britannia has reduced the sugar content by 6% per serving over the last six years and has committed to reducing it further by 5% in the next five years. Similar efforts are being made on the sodium content of its products. Outside India, they have a strong presence in the Gulf Cooperation Council with manufacturing facilities in Oman and the UAE, and are spreading their global footprint across North America, Europe, Africa and South East Asia. The company’s portfolio of halal-certified products, which include Britannia Good Day Cookies, Marie Biscuits, Vitamarie Biscuits, Britannia Digestive, Britannia Milk Bikis Biscuits and the company’s iconic Nice Time Biscuits- are carefully labelled with a range of certifications based on the markets they are sold in, consumer interests, allergens and dietary requirements.

Asia – the region has been marked as one of the major growth drivers for the halal bread and baked food market. This, in turn, increases the demand for halal baking ingredients. Malaysia and Indonesia have long been leaders in the halal industry. Malaysia has been, specifically acknowledged for having pioneered the Malaysian halal standards and certification scheme since the early 70s. It is the only country in the world whereby the government provides full support in promoting halal certification for products and services. Malaysian halal food manufacturer Kawan Food Berhad makes and sells frozen foods including flatbreads such as paratha, chapati and naan. The company posted increases in sales and profit for the months of April, May and June this year as domestic and international consumers ate at home during the COVID-19 lockdowns.  Revenue grew by 38.67% to USD$19.06 million, due to increased demand in domestic, Europe, North America, Oceania and African markets. The world’s first halal gelatin industrial park is set to be fully operational by 2025 in Malaysia, and will cater to the dearth in global supply for halal gelatin. 

Innovative Ventures 

A long-term commitment to new, innovative halal bakery products was established when Nestle and Dawn Foods teamed up to create baked good for customers in Europe, Middle East and North Africa. Dawn Foods will devise recipes and produce baked goods, utlislisng Nestle ingredients. Their first product will be a branded KitKat muffin. Nestle, incidentally is one of the world’s most recognised halal brands. Dawn Foods, bakery ingredients and finished sweet bakery products supplier to high street and plant bakeries, retail and foodservice markets worldwide, has secured halal certification for all it products manufactured at its bakeries in Evesham UK and Steenbergen in the Netherlands. 

Challenge

It is apparent that the halal food industry is booming, but despite that, the industry is still faced with a key stumbling block: the absence of a standardised regulatory framework in halal certification. Without a unified certification system, cross-border halal trade is impacted and hence, the further growth of the halal food industry is hampered. What is classified permissible by a certifying body in one country may not necessarily be so in another; and making it more complicated is the different interpretations that many of these certifying bodies have on what constitutes halal.

In the UK, there are a number of halal food accreditation bodies, including the Halal Food Authority (HFA), Halal Monitoring Committee (HMC), Halal Authority Board and The Muslim Food Board. Each of these bodies offers different definitions of what constitutes halal and what is haram. This lack of unity in halal accreditation has become a contentious issue for UK consumers. 

Also, halal certification in most countries is largely focused on meat production, and not other areas of the halal food sector. 

The Malaysian Example

Malaysia has navigated this challenge quite successfully. Halal certification in Malaysia is handled by the Department of Islamic Development Malaysia (JAKIM). Malaysia is the first country to develop halal food standards in accordance with the Malaysian Halal Standard, which guarantees transparency and efficiency. The Malaysian halal certificate is the only one which is supported and approved for use by all Muslim countries as an internationally standardised logo and certification system. Malaysia’s halal certification has been often cited as one of the strictest and most respected in terms of regulating manufacturing and food processing procedures and has become the basis for the development of the world’s halal food industry. 

The Future

The industry is moving in the right direction. The halal bakery market is driven by increasing consumer expenditure and it is only expected to rise post-Covid as consumers continue to be confined to their homes for work. The introduction of blockchain is anticipated to further boost the growth of the halal food market. Blockchain – with its characteristic that is high in transparency and traceability- will be a good solution in providing reliable data while increasing consumer trust in the halal supply chains; increasing seamless and efficient halal processes from source to point of consumer purchase; improving sustainability of halal supply chains; and expanding global recognition of halal products. For instance, OneAgrix tracks and traces halal produce and ingredients (including bakery products and ingredients ) in the European halal market; verifying the authenticity of a manufacturer’s halal certification. Data compiled is vetted and secured through a blockchain ledger to combat halal food counterfeit and fraud. Singaporean start-up, What’sHalal, on the other hand, has developed an enterprise solution platform aimed at helping companies to ease the application process for halal certification, with a primary focus on food companies.

You can read the rest of this article in the Autumn Issue of Asia Pacific Baker & Biscuit magazine, which you can access by clicking here.