SPC to Open Halal Plants in Southeast Asia and the Middle East

As demand for halal-certified products reaches new heights globally, SPC, the South Korean bakery conglomerate behind the popular Paris Baguette brand, is marking a significant milestone with the launch of its new halal plant in Johor, Malaysia. This move reinforces SPC’s strategic commitment to Southeast Asia and the Middle East, where the halal food industry is rapidly expanding to meet the dietary and ethical standards of Muslim consumers. With the Johor plant set to open within months, SPC is poised to become a key player in the global halal bakery sector, offering certified, high-quality bakery goods to a wide international audience.

Why Johor?

SPC’s choice of Johor, Malaysia, as the site of its new halal plant is no coincidence. Johor, located just north of Singapore, is emerging as a strategic economic zone with a growing manufacturing sector, robust infrastructure, and plans to develop into a global halal hub. The state’s proximity to major shipping routes and access to raw materials have made it attractive for companies like SPC that want to serve both the Southeast Asian and Middle Eastern markets.

In a recent meeting with SPC CEO Hur Jin-soo, Johor State Governor Onn Hafiz Ghazi expressed strong support for the initiative, acknowledging the positive impact it would have on local employment and economic growth. Johor, home to the city of Johor Bahru, Malaysia’s second-largest urban area, has been an agricultural powerhouse, particularly in pineapple production. The region’s agricultural resources and proximity to Singapore make it an ideal hub for food manufacturing, further enhanced by Malaysia’s commitment to positioning itself as a leader in the halal industry.

Investment in Local Economy

With a hefty investment of 40 billion won (around USD 29 million), SPC’s halal plant in Johor is more than just a new facility. It represents a commitment to Malaysia’s economy and an endorsement of local resources and talent. Set on a 12,900-square-meter plot, the facility will focus on producing a range of bakery items under stringent halal certification standards, ensuring that all processes comply with Islamic dietary guidelines. SPC plans to use locally sourced, halal-certified ingredients, supporting Malaysia’s agricultural sector while maintaining transparency and quality in its supply chain.

As Malaysia’s halal industry continues to grow, this facility is expected to create numerous job opportunities, benefiting local communities and helping Johor establish itself as a halal production hub. By employing local workers and sourcing ingredients from Malaysian suppliers, SPC is not only reinforcing its commitment to halal production but also contributing to sustainable economic development in the region. The plant’s focus on halal compliance, transparency, and local sourcing aligns perfectly with the demands of the global halal food market, projected to surpass $2.5 trillion by 2025.

Why Demand is Rising

The global halal market is experiencing exponential growth, driven by a combination of rising Muslim populations and increased awareness among non-Muslim consumers of the ethical and purity standards that halal certification entails. The Muslim population worldwide is expected to reach nearly 2.2 billion by 2030, accounting for about 26% of the global population. As a result, the demand for halal-certified food is increasing, not only in Muslim-majority countries but also in regions like Europe, North America, and Southeast Asia.

Southeast Asia, in particular, has seen a steady rise in demand for halal-certified products due to its significant Muslim population. Countries like Indonesia, Malaysia, and Singapore have implemented stringent halal standards and certification processes to ensure food quality and compliance with Islamic law. SPC’s new plant in Johor allows it to tap into this growing market while also positioning itself to serve the Middle Eastern market, where demand for halal bakery items continues to rise.

SPC’s Halal Journey

SPC Chairman Hur Young-in has long envisioned expanding the company’s reach into halal markets. His focus on the halal sector reflects a broader trend among food companies seeking to meet the diverse dietary needs of global consumers. With the establishment of the Johor halal plant, SPC is bringing this vision to life. This facility will play a pivotal role in the company’s expansion strategy, ensuring that halal-certified, high-quality bakery products can reach customers in Southeast Asia, the Middle East, and beyond.

Chairman Hur’s commitment to halal production is not only about capturing a market segment but also about respecting cultural diversity and consumer preferences. This approach reflects a shift in the food industry, where companies are increasingly recognizing the importance of offering products that cater to various cultural and religious needs. By establishing a halal-certified production line, SPC is setting a precedent for other companies aiming to expand into Muslim-majority markets, reinforcing the idea that halal certification is an asset in today’s diverse food market.

Paris Baguette

The Johor plant will support SPC’s popular Paris Baguette brand, which is renowned for its premium-quality pastries, cakes, and sandwiches. Paris Baguette has already gained a substantial following in Asia, the United States, and Europe, known for its innovative bakery creations and high-quality standards. With the opening of the Johor plant, SPC will be able to produce halal-certified versions of its signature items, catering to Muslim consumers and expanding the brand’s global appeal.

Paris Baguette’s entry into the halal market is significant. While halal certification is most commonly associated with meat products, the demand for halal-certified baked goods has been steadily increasing. Muslim consumers are seeking bakery items that align with their dietary preferences, particularly in regions with sizable Muslim populations. By offering halal-certified pastries, cakes, and bread, Paris Baguette is meeting this demand head-on, reinforcing its commitment to inclusivity and customer satisfaction.

Halal Certification

Halal certification is a rigorous process that involves adhering to specific dietary laws outlined in the Quran. For a product to be certified as halal, it must be free from any substances prohibited in Islam, such as pork or alcohol. Additionally, all production processes, from sourcing ingredients to packaging, must meet halal standards to ensure compliance.

For consumers, halal certification assures that the food they are purchasing meets strict quality and ethical standards. It is not only about religious observance but also about transparency and purity in food production. Many consumers, regardless of religious background, associate halal certification with cleanliness, ethical sourcing, and high production standards. This perception has helped halal products gain traction among non-Muslim consumers who value ethical and health-conscious food options.

The Global Halal Industry

Malaysia has long been at the forefront of the global halal industry, with government support for halal certification, research, and innovation. The country’s Halal Industry Development Corporation (HDC) has positioned Malaysia as a leader in halal standards, setting benchmarks for other nations. With an ecosystem designed to promote halal production, Malaysia offers a conducive environment for companies like SPC to establish operations and meet global halal standards.

SPC’s decision to establish its halal plant in Johor aligns with Malaysia’s ambitions to become a global halal hub. The Malaysian government has introduced various incentives and programs to attract foreign investment in the halal sector, reinforcing the country’s reputation as a leader in halal production. By choosing Malaysia, SPC is not only gaining access to a robust halal ecosystem but also aligning itself with a country that has become synonymous with halal excellence.

Beyond Southeast Asia

While the Johor plant will primarily serve the Southeast Asian market, SPC has plans to extend its reach to the Middle East, a region known for its high demand for halal-certified products. Middle Eastern countries such as Saudi Arabia, the United Arab Emirates, and Qatar have well-established halal standards and offer a lucrative market for halal-certified food items. SPC’s expansion into this region will enable it to capture a significant share of the Middle Eastern bakery market, where consumers are increasingly seeking premium, halal-certified products.

The Middle East is a key region for SPC’s expansion, not only because of the large Muslim population but also due to the region’s robust retail infrastructure and high demand for quality food products. With the Johor plant serving as a base, SPC can efficiently distribute products to Middle Eastern markets, enhancing its brand presence in the region and offering customers access to high-quality, halal-certified baked goods.

The Future of Halal Production

The global halal food industry is expected to continue its rapid growth, driven by demographic changes, increased consumer awareness, and the expansion of halal certification into non-Muslim-majority markets. As more consumers recognize the quality and ethical standards associated with halal-certified products, the demand for such products will likely extend beyond traditional Muslim markets.

However, expanding halal production comes with its own set of challenges. Ensuring compliance with halal standards across diverse markets requires rigorous oversight and a commitment to quality. Companies must invest in halal certification, secure reliable sources of halal-compliant ingredients, and maintain transparency in their production processes. For SPC, establishing a halal-certified plant in Johor is a strategic move that addresses these challenges by creating a centralized facility that adheres to the highest halal standards.

SPC’s Long-Term Vision

With the launch of its Johor plant, SPC is laying the groundwork for its long-term vision of becoming a global leader in halal-certified bakery products. The company’s commitment to halal production reflects a deep understanding of the global market’s evolving needs and an acknowledgment of the importance of catering to diverse consumer preferences. As SPC continues to expand its halal production capabilities, it is setting a standard for the industry and showcasing the potential of halal-certified products to meet the demands of a growing global population.

SPC and the Halal Food Industry

SPC’s foray into halal production marks an exciting chapter in the company’s history and a significant milestone for the global halal food industry. By establishing a halal-certified plant in Johor, SPC is not only catering to Muslim consumers but also reinforcing the importance of ethical and transparent food production. As the company expands its halal offerings, it is well-positioned to become a trusted name in the global halal bakery market, bringing high-quality, halal-certified products to consumers in Southeast Asia, the Middle East, and beyond.

The Johor plant is more than just a production facility; it is a testament to SPC’s dedication to cultural respect, quality, and customer satisfaction. With halal-certified bakery items now on its menu, SPC is poised to capture a new segment of the market and contribute to the growth of the global halal industry. For consumers around the world, SPC’s expansion represents an opportunity to enjoy halal-certified products from a brand they trust, marking the beginning of a new era in the world of halal bakery goods.