Halal Exporters Eye Opportunities at Vast China Market

Exporters looking to tap into the rapidly growing and lucrative China market opportunities must evolve their strategies beyond simply offering Muslim-friendly products. As discussed at the Malaysia International Halal Showcase (MIHAS) 2024, the key to success lies in positioning halal food products as not only religiously compliant but also healthy, safe, and environmentally friendly. By doing so, exporters can reach a much broader audience, including non-Muslim consumers who prioritize health and ethical considerations. With China being one of the largest halal markets globally, the potential for halal exporters is vast and full of opportunity.

China Market Opportunities: Expanding the Definition of Halal

While halal is traditionally associated with Islamic dietary laws, its significance in the broader marketplace goes beyond religious adherence. Halal represents cleanliness, ethical sourcing, and sustainability—values that resonate strongly with today’s health-conscious and eco-aware consumers. Jacob Lee Chor Kok, vice president of the Federation of Malaysian Manufacturers, emphasized this point at a MIHAS 2024 panel, stating that halal products appeal to a diverse consumer base because of their inherent qualities of cleanliness and safety.

This broader understanding of halal opens up China market opportunities for exporters. While China’s Muslim population, estimated at over 20 million people, remains a core target for halal products, non-Muslim consumers are increasingly drawn to the health and ethical benefits these products offer. This evolving consumer mindset presents a significant opportunity for growth in China’s vast and diverse marketplace.

The Growth of Halal Products in China

China has emerged as one of the largest consumers of halal products globally, with its Muslim population concentrated in regions like Xinjiang, Ningxia, and Gansu. However, the appeal of halal products is not limited to these areas. Across China, there is a rising demand for health-conscious, safe, and ethically sourced food products—a trend that aligns perfectly with halal principles. This shift in consumer behavior opens the door for Malaysian halal exporters to expand their reach within China.

Malaysia, a leader in halal exports, counts China as one of its top three markets, alongside the United States and Singapore. According to the Malaysia External Trade Development Corporation (MATRADE), the country’s halal exports are set to grow significantly as more Chinese consumers, both Muslim and non-Muslim, become aware of the benefits of halal products. In this context, China’s market opportunities for halal exporters are expanding rapidly, driven by both religious and non-religious factors.

Tailoring Products to Regional Preferences

One of the key takeaways from MIHAS 2024 is the importance of understanding regional preferences within China. Given the size and diversity of the country, consumer tastes and expectations can vary significantly between regions. For example, while health-conscious consumers in metropolitan areas like Beijing and Shanghai may prioritize products with clean labels—such as “no MSG” or “no added sugar”—those in Muslim-majority regions may focus more on religious compliance and traditional dietary habits.

To effectively penetrate the Chinese market, halal exporters must tailor their products and marketing strategies to meet these diverse needs. By positioning halal products as both religiously compliant and health-conscious, exporters can appeal to a broader demographic, thus maximizing their reach in China’s vast consumer landscape.

Case Study: Omni Mal Agencies’ Success in Taiwan

A prime example of how Malaysian halal exporters can successfully penetrate new markets comes from Omni Mal Agencies, a Malaysia-based supplier of halal dates. CEO Chua Hock Tee shared his company’s experience during MIHAS 2024, explaining how Omni Mal carved a niche in Taiwan by marketing date syrup as a low-glycemic alternative to traditional sweeteners.

In Taiwan, many consumers are health-conscious and wary of sugary foods and beverages, which are often associated with negative health effects such as diabetes. Omni Mal’s strategy of marketing their date syrup as a healthy, low-glycemic product resonated strongly with local consumers. The company’s certification that the syrup does not cause spikes in blood sugar levels provided additional reassurance to health-conscious buyers.

Beyond date syrup, Omni Mal also successfully marketed dried dates as gift products and baking ingredients. In Taiwan, consumers are familiar with red dates, which come from the jujube tree. Omni Mal’s dates, sourced from the date palm, were positioned as a unique alternative, offering different health benefits and culinary uses. This approach helped Omni Mal gain a foothold in a market that was already familiar with dates but in a different form.

Hong Kong: A Gateway to the Greater China Market

While Taiwan offers one pathway into the broader Chinese-speaking world, Hong Kong provides another significant entry point for halal exporters. As a densely populated and fast-paced city, Hong Kong presents unique challenges and opportunities for halal brands. According to Pinky Lee, sourcing manager at CEC International Holdings, health-conscious consumers in Hong Kong are particularly interested in products that are free from additives such as MSG, added sugar, and hormones.

Hong Kong’s consumers also favor convenience, as many lead busy lifestyles and prefer products that are easy to grab and consume on the go. For halal exporters, this means focusing on convenient, ready-to-eat products that align with modern, urban lifestyles. Lee noted that CEC International, which operates the 759 Store grocery chain, recently started selling Malaysian halal snacks for the first time—a move made possible through MATRADE’s International Sourcing Program (INSP).

MATRADE’s Role in Facilitating Halal Exports

MATRADE has been instrumental in promoting halal exports to China and other markets. Its International Sourcing Program (INSP), held during MIHAS, is a business-matching initiative that connects Malaysian exporters with international buyers. This year, over 200 buyers from countries like China, India, and the United States participated in the INSP, showcasing the growing demand for halal products in these markets.

One of the notable buyers at MIHAS 2024 was Shanghai-based Vasto International. According to Benson Ong, the company’s sales and marketing director, the INSP provided an invaluable opportunity to meet with reliable halal food suppliers from Malaysia. Ong highlighted the popularity of halal snack foods in China, noting that they have become some of the top-selling products in the company’s portfolio.

Ong also expressed keen interest in halal frozen tiger prawns—a product in high demand in China. This type of product diversification showcases the breadth of China’s market opportunities for halal exporters, extending beyond traditional food categories into seafood, snacks, and other sectors.

The Future of Halal in China

As the demand for halal products continues to grow in China, the future looks promising for Malaysian exporters. The Chinese market offers vast potential, but success will depend on the ability of exporters to adapt to the unique demands of its consumers. Understanding regional preferences, leveraging health trends, and positioning halal products as both religiously compliant and health-conscious will be critical to achieving long-term success in this market.

In addition to food products, there is growing interest in halal-certified pharmaceuticals, cosmetics, and personal care items in China. These sectors offer additional avenues for Malaysian exporters to expand their presence in the Chinese market. MATRADE has already begun facilitating the entry of non-food halal products into China, recognizing the growing consumer demand for ethical, clean, and safe products across various industries.

A World of Opportunities Awaits

For halal exporters, China represents a wealth of opportunities. By going beyond religious compliance and marketing halal products as healthy, safe, and sustainable, exporters can appeal to a diverse and rapidly growing consumer base. The key to success lies in understanding regional market preferences, leveraging health and ethical trends, and participating in business-matching initiatives like MATRADE’s INSP.

With the right strategy, Malaysian halal exporters can continue to expand their presence in China, capitalizing on one of the world’s largest and most dynamic markets for halal products. The China market opportunities for halal products are vast, and with a tailored approach, exporters can unlock the full potential of this exciting market.