Thailand Becomes the 5th Largest Producer of Halal Food

Thailand has rapidly ascended to become a powerhouse in the global halal market, now standing as the fifth-largest producer of halal food worldwide. This remarkable achievement is particularly noteworthy given that Thailand is a Muslim minority country. How did Thailand transform its manufacturing expertise, stringent quality assurance, and rich culinary traditions into a leading role in the halal industry? We will explore the factors behind Thailand’s meteoric rise in the halal sector, examine its current market position, and delve into ongoing initiatives and future trends, incorporating the latest data from the market available. Discover how Thailand’s strategic investments and innovations have propelled it to the forefront of the global halal marketplace and what lies ahead for this dynamic industry player.

Thailand’s Position in the Global Halal Market

Thailand’s halal industry has made remarkable strides, now ranking as the world’s 12th leading exporter of halal products and the fifth largest producer globally. The country holds a leading position in halal export among ASEAN nations, underscoring its significant role in the global halal supply chain. According to the Department of Thai Trade Centre, MENA, halal food accounts for approximately 20% of Thailand’s global food exports, with major markets including Indonesia, Malaysia, and Brunei, which collectively receive more than 60% of Thailand’s halal exports.

The Thai government and private sector have capitalized on the increasing global demand for halal products, leveraging their expertise in manufacturing, quality assurance, and marketing. This strategic approach has been instrumental in Thailand’s rapid rise within the halal market, contributing to its ambitious growth targets.

The Thai Halal Market: Growth and Export Targets

Thailand’s halal market is expected to grow at an annual rate of 20%, reflecting the increasing global appetite for halal products. For 2021, the country set a target to increase its halal exports by 3%, aiming to reach a value of $3.8 billion. This growth is driven by expanding markets and the country’s efforts to enhance its halal product portfolio.

Among Thailand’s notable halal exports are rice, sweet corn, tapioca products, sugar, canned tuna, processed fruits and vegetables, and seasonings. The country is also making significant inroads into other sectors, including cosmetics, poultry, and plant-based meat. This diversification highlights Thailand’s commitment to expanding its halal product range and catering to a broader consumer base.

Thai Halal Initiatives and Certification

A crucial aspect of Thailand’s success in the halal market is its robust certification process. The Central Islamic Council of Thailand (CICOT), established under the Islamic Act, serves as the country’s primary halal certification authority. CICOT ensures that Thai halal products adhere to Islamic principles, providing a critical layer of trust and quality assurance for international consumers.

To enhance its credibility, CICOT has sought accreditation from certification authorities in key Muslim countries. For example, it has engaged with the Emirates Authority for Standardization and Metrology (ESMA) in the UAE to align Thai halal standards with those of major halal markets. This strategic move facilitates smoother access to international markets and demonstrates Thailand’s commitment to meeting global halal standards.

Thailand also boasts a pioneering initiative in halal certification through the Halal Science Centre at Chulalongkorn University. This world-first facility employs cutting-edge technologies to maintain halal standards and support the certification of over 150,000 products from approximately 5,000 companies. The center’s advanced methodologies for detecting haram ingredients reflect Thailand’s investment in ensuring the authenticity and quality of its halal offerings.

Addressing Challenges and Leveraging Opportunities

The global halal industry, like many others, has faced challenges due to the COVID-19 pandemic. However, Thailand has leveraged the increased adoption of digital platforms to mitigate these impacts. The Ministry of Commerce has been proactive in encouraging small and medium-sized manufacturers to utilize online platforms for marketing their products, thereby accessing existing and new markets.

Additionally, the Federation of Thai Industries is optimistic about the future of Thailand’s halal exports, citing the presence of over 20,000 Thai restaurants worldwide. This extensive network provides an opportunity for halal exporters to tap into a growing market, including non-Muslim consumers who are increasingly interested in halal products.

Future Prospects for Thailand’s Halal Industry

As Thailand continues to attract Muslim travelers, there is a growing opportunity for halal manufacturers to expand their domestic portfolio. Supplying halal food and products to local restaurants, hotels, and resorts can enhance the industry’s visibility and growth.

Innovation will play a pivotal role in Thailand’s future success within the halal industry. This innovation must span the entire halal ecosystem, including manufacturing processes, product development, logistics, and marketing strategies. Embracing technological advancements and consumer trends will be crucial in maintaining competitiveness and achieving long-term growth.

Thailand’s established reputation for certified halal-quality products, coupled with a supportive infrastructure, positions the country for continued prominence in the global halal market. As the industry evolves, Thailand’s commitment to excellence and innovation will likely drive its halal sector to even greater heights.

Thailand’s remarkable ascent in the global halal market is a testament to the country’s strategic investments and commitment to quality. From its current position as the fifth largest producer of halal food to its ambitious growth targets, Thailand is poised to continue its influential role in the halal industry. By leveraging its expertise, embracing innovation, and addressing both challenges and opportunities, Thailand is set to further solidify its standing as a major player in the global halal marketplace.

This comprehensive analysis underscores Thailand’s significant contributions to the halal industry and highlights the country’s potential for future growth and success. As global demand for halal products continues to rise, Thailand’s strategic initiatives and ongoing efforts will play a crucial role in shaping the future of the halal market.