Malaysian companies can tap into Germany’s halal market
In 2023, about 5.5 million inhabitants practised Islam in Germany, which accounts for about 6.6 per cent of the country’s total population.
The number of Muslims grows yearly, creating a niche market for halal products and services, including a logistic network. It has increased the opportunities for Malaysian suppliers of halal products and services in Germany.
Halal is a multi-billion and dynamic industry with a pool of consumers with strong purchasing power.
According to the State of the Global Islamic Economy Report produced by DinarStandard – a US-based research and advisory firm, consumer spending in global Islamic Economy sectors grew 9.5 per cent YOY to US$2.29 trillion in 2022 on food, pharmaceuticals, cosmetics, modest fashion, travel, and media.
Malaysia also retained the top spot in the Global Islamic Economy Indicator (GIEI) for the 10th consecutive year.
“Malaysian companies who wish to explore Germany’s market can use halal as a business value proposition that emphasises strict supply chain management to ensure the highest level of care in product manufacturing,” said MATRADE Frankfurt in a recent statement.
In Europe, it has a lot of similarities with organic and vegan products.
Halal not only refrains manufacturers from using forbidden or haram ingredients but also motivates them to focus intensely on caring for the planet, social well-being, and good governance.
It aligns with the Sustainable Development Goals set by the United Nations and Malaysia’s strong commitment as a signatory to the Paris Agreement, which is aimed at strengthening the global response to the threat of climate change.
HALAL MARKET IN GERMANY
From the F&B perspective, the halal food sector in Europe, particularly in Germany, is booming and creates many opportunities for manufacturers.
The total value of the halal market in Germany is around US$3.9 billion annually. Therefore, the halal market is huge in Germany as the country has a sizable number of Muslims and a demand for halal food items.
“Germans are also keen to get halal products because halal is not only related to a religion but halal means clean, hygienic and every step of the production procedure is monitored carefully.”
The rising demand for halal products has opened the need for a well-functioning logistics network. Due to this, Germany’s logistics companies are increasingly eyeing the halal niche market since there is a vast consumer base of more than two billion Muslims worldwide, including the growing Muslim population in Germany itself.
MALAYSIA’S INTERNATIONAL HALAL SHOWCASE
As Malaysia’s National Trade Promotion agency, Malaysia External Trade Development Corporation (MATRADE) has put much effort into promoting Malaysia as a global halal hub and preferred sourcing destination.
MATRADE is the organiser of the largest halal trade event in the world, the Malaysia International Halal Showcase (MIHAS).
The upcoming 20th Malaysia International Halal Showcase (MIHAS 2024) is poised to become the gateway for global exporters to access the fast-growing halal industry, which is expected to reach almost US$5 trillion by 2030.
Hosted by the Ministry of Investment, Trade and Industry (MITI), MIHAS 2024 will be held over four days, from Sept 17-20, at the Malaysia International Trade and Exhibition Centre (MITEC).
MIHAS 2024 is expected to be the largest halal showcase post-pandemic as global, regional and domestic players gear up towards increasing trade and investments in the halal economy.
MATRADE won its first World Trade Promotion Organisations (WTPO) Award under the “Best Use of Information Technology” category for its initiative in organising the virtual edition of the 17th MIHAS in 2021.
EXPLORING OPPORTUNITIES WITH MATRADE
With its presence in Frankfurt, Germany, MATRADE Frankfurt is ready to build a closer connection between the Malaysian and German industry players and forge more strategic partnerships in the halal sector for the future.
Malaysia and Germany can collaborate to explore the potential of this industry through innovation partnership and in sustainable supply chain management.
“MATRADE Frankfurt welcomes all German industry players, not only in the F&B sector but also from other manufacturing segments such as pharmaceuticals and FMCGs, to partner with Malaysia to capitalise on the prospects of the halal industry in the European region.
