Halal Foodservice in Asia Pacific

Halal foodservice, an under serviced market in Asia

Foodservice operators eye international expansion as a growth driver, especially into emerging markets, and modern Muslim consumers have fast become a lucrative target segment. Specifically, Asia is home to around two-thirds of the world’s Muslim consumers, and is also set to take spotlight in travel destinations for global Muslims.

Malaysia serves as key market for growth

Malaysia continues to enjoy healthy rates of growth in its diversified economy,partly driven by rapid private consumption. The country’s multicultural society,with 60% Muslim populations who are leading modern lifestyles, contributes to the dynamic growth of foodservice. Furthermore, the government sets out global halal standards for halal businesses.

Muslim consumers are increasingly influenced by modern technology

Rapid urbanisation and high penetration of mobile technology in emerging markets increasingly drive modern Muslim consumers to look for ‘better’ and convenience in food options. Food delivery apps and online portals appeared as great channels in capitalising on halal segments in non-Muslim majority markets.

Halal demand attracts competition

More Asian foodservice operators and global fast food chains offer halal choices as they expand in the region. Halal restaurants are also growing in number in non-Muslim-majority destinations such as Thailand, South Korea and Japan.Local governments look to attract more Muslim tourists.

Opportunities and challenges

Growing demand for halal packaged food and increased acceptance of halal food among non-Muslim consumers present favourable opportunities for businesses going halal. However, complicated certification processes, divergence of menu ingredients, and cuisines’ taste are major concerns.