Halal: Never Has Been A Concept So Relevant

Understanding the Halal Concept

The term “Halal” is derived from Arabic, meaning “permissible.” In Islamic law, it refers to what is allowed for consumption and use by Muslims. Traditionally, the Halal concept was closely associated with food and beverages, but over time, its relevance has expanded to encompass a wide array of products and services. Today, Halal certification is not limited to food; it extends to pharmaceuticals, cosmetics, clothing, tourism, finance, and more.

To be deemed Halal, a product must undergo a rigorous certification process that adheres to strict Islamic guidelines. This process ensures that the product contains no ingredients or components that are forbidden (haram) for consumption by Muslims. For instance, alcohol and pork products are strictly prohibited in Halal-certified items. The verification process often involves thorough laboratory testing to ensure compliance with these standards.

But Halal certification is not just about what is absent from a product; it’s also about how the product is made. The certification process demands that production methods align with ethical and environmental standards. For example, Halal-certified products must not be produced using methods that harm the environment, deplete natural resources, or involve unethical labor practices, such as slave labor. Even in the case of animal products, Halal guidelines dictate humane treatment and specific methods of slaughter.

The Intersection of Halal and ESG Principles

Beyond its religious origins, the Halal concept is increasingly resonating with a global audience, particularly those who prioritize ethical consumption. In recent years, the principles underpinning Halal have begun to align closely with the widely recognized ESG (Environmental, Social, and Governance) criteria. ESG is a framework used by investors to evaluate a company’s ethical impact and sustainability practices. It focuses on how businesses address environmental challenges, engage with social issues, and uphold governance standards.

The Halal concept, much like ESG, emphasizes the importance of ethical production, fair trade, and social responsibility. Halal-certified products are often associated with higher quality and greater ethical standards, making them appealing to a broader demographic. This shift is particularly noticeable among younger consumers, who are more conscious of the impact their purchasing decisions have on the environment and society.

A study by Accenture Strategy & Consulting highlighted this trend, revealing that 88% of Brazilians aged 15 to 39 prefer to work for companies that adhere to ESG principles. This preference is not just about ethical consumption; it also reflects a growing desire among young professionals to align their careers with their values. They want to work for companies that are committed to sustainability, social responsibility, and ethical governance—principles that are deeply embedded in the Halal concept.

Brazil’s Role in the Global Halal Market

Despite its growing global appeal, the Halal concept remains relatively unfamiliar to many in Brazil, where Muslims represent a small minority of the population. However, Brazil plays a crucial role in the global Halal market. The country is one of the top five suppliers of food and beverages to the Organization of Islamic Cooperation (OIC), a group of 57 countries that includes nearly 2 billion Muslims worldwide.

In 2022, the OIC imported over $220 billion in Halal products, with $23.4 billion of that coming from Brazil. This makes Brazil a significant player in the global Halal market, particularly in the export of Halal-certified meat. According to the Brazilian Animal Protein Association (ABPA), Brazil exported 1.983 million tons of Halal chicken to the Islamic market in 2022, generating revenue of $3.869 billion—a 29.1% increase from the previous year. These figures highlight Brazil’s potential to further expand its presence in the Halal market, contributing to economic growth and job creation.

The importance of Halal exports to Brazil’s economy cannot be overstated. As the global demand for Halal products continues to rise, with projections suggesting that the market could reach $2.8 trillion by 2025, Brazil has a significant opportunity to increase its exports and tap into new markets. This potential is not limited to food and beverages; Brazil’s burgeoning pharmaceutical, cosmetics, and fashion industries also stand to benefit from the growing demand for Halal-certified products.

The Universal Appeal of Halal

While the Halal concept is rooted in Islamic tradition, its appeal has become increasingly universal. In a world where consumers are more informed and conscientious than ever before, the demand for products that are ethical, sustainable, and safe is growing. The COVID-19 pandemic has further heightened awareness of these issues, leading to an increased focus on health and safety in consumer choices.

Halal certification offers a guarantee that a product meets the highest standards of quality and ethical production. This assurance is particularly appealing to consumers who are concerned about the environmental and social impact of the products they purchase. The Halal concept, with its emphasis on ethical sourcing, humane treatment of animals, and environmentally sustainable practices, provides a framework that aligns with these concerns.

Moreover, the Halal concept is increasingly being recognized as a standard that benefits all of humanity, not just Muslims. By adhering to Halal principles, companies can ensure that their products are not only permissible for Muslims but also meet the ethical and environmental standards that are becoming increasingly important to consumers worldwide.

The Future of Halal in Brazil and Beyond

As Brazil continues to grow its presence in the global Halal market, companies need to recognize the broader implications of the Halal concept. By embracing Halal certification, Brazilian companies can position themselves as leaders in ethical and sustainable production, appealing to a global audience that values quality, ethics, and sustainability.

The Halal concept is more than just a religious requirement; it’s a global trend that is reshaping the way we think about consumption. As the demand for Halal products continues to rise, companies that align with these principles will be well-positioned to succeed in a competitive global market.

The Global Halal Brazil Business Forum is not just an event for industry insiders; it’s a reflection of the growing importance of the Halal concept in today’s global economy. For Brazilian companies, the Halal market represents a promising opportunity for growth, innovation, and leadership in ethical and sustainable practices. The future of Halal is bright, and its relevance in today’s world is undeniable. As consumers continue to seek out products that align with their values, the Halal concept will play an increasingly important role in shaping the future of global trade and consumption.