Outpacing the Mainstream: Islamic Economy Food and Lifestyle Sector Expenditure to reach US$3 Trillion by 2022
|This article is an extract from the State of the Global Islamic Economy Report 2017/18.
The report can be downloaded from HERE.
The Islamic Economy is at the cusp of major growth and widespread recognition, having gained traction as Muslims assert their religiosity and traditional values. Awareness about the concept of Halal is on the rise, and companies are responding to these consumer needs, be it for products or services. The State of the Global Islamic Economy Report 2017/18 brings you the latest developments and trends from this economy while also highlighting the future direction of this sector.
For the second year running, we have listened to the industry and millennial consumers to gauge views, opportunities and challenges. Sentiment across the board, from Halal Food to Islamic Finance and Modest Fashion, to Halal Travel, Halal Pharmaceuticals and Cosmetics, is overwhelmingly positive at 77 percent of interactions. For the first time, we look at the future state of what the Islamic Economy might be like in 2030 if core challenges and opportunities are addressed, which can see the emergence of multi-billion-dollar, scaled global enterprises.
This Report estimates that Global Muslim spend across lifestyle sectors was $2 trillion in 2016, while the Islamic Finance sector has $2.2 trillion in total assets. Food and beverage leads Muslim spend by category, at $1.24 trillion, followed by clothing and apparel at $254 billion, media and entertainment at $198 billion, travel at $169 billion, and spending on pharmaceuticals and cosmetics at $83 billion and $57.4 billion respectively.
Halal Food is the largest and most diverse sector of the Islamic Economy. New entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, readymade meals, snacks and children’s food.