As Japan positions itself as a pivotal player in the expanding global halal market, the demand for halal-certified goods within its borders is soaring. In a bold move, Indonesian Minister of Religion, Yaqut Cholil Qoumas, has recently announced a target to triple the halal certification of Japanese products, underscoring a significant leap in trade relations between Indonesia and Japan.
This initiative not only capitalizes on the increasing curiosity and demand from Japan’s domestic consumers but also caters to the needs of international Muslim travelers. The enhanced focus on halal certification opens up vast opportunities for businesses and is set to invigorate bilateral trade, making this an essential development for stakeholders in the halal industry.
Yaqut’s Target for Halal Certification in Japan
Minister Yaqut announced the bold target at the launch of the Indonesian halal certification body in cooperation with the Japan Halal International Trust Organization (HITO) at the Indonesian Embassy in Tokyo. The Indonesian Halal Product Assurance Agency (BPJPH), part of the Ministry of Religion, will be responsible for certifying a diverse range of Japanese products to meet halal standards.
Yaqut’s target to increase halal certification in Japan by 200% is not just an optimistic goal but reflects the growing economic ties between Indonesia and Japan. He aims for this substantial increase to be achieved before the end of President Joko Widodo’s administration in October. “My target is at least a 200% increase over current conditions,” said Yaqut. “It’s a rational expectation for Japanese products to be brought into Indonesia.”
The call for a substantial increase in halal certifications highlights Indonesia’s strategic vision to expand its influence in the global halal market and its desire to enhance trade relations with Japan. The focus is on tapping into Japan’s potential as a significant halal market, backed by an increasing demand for certified products in the region.
Halal Certification in Japan
The halal certification process is an essential element for Muslim consumers who adhere to dietary and lifestyle rules set forth by Islamic law. For products to be certified halal, they must comply with strict guidelines on production, ingredients, processing, and packaging. As of now, there are 150 international halal certification bodies worldwide recognized by Indonesia’s BPJPH, which was established in 2017. BPJPH has since issued around 2 million halal certificates, covering approximately 5 million products globally.
In Japan, halal certification has been gaining momentum. The BPJPH currently certifies 35 Japanese companies, covering 390 halal products, ranging from food items to cosmetics and personal care products. These numbers are expected to see a considerable boost in light of Minister Yaqut’s new target, which emphasizes the importance of facilitating Japan’s growth in the halal industry.
A significant development expected to support this surge is the signing of a Mutual Recognition Agreement (MRA) in October. The MRA will simplify the recognition process for halal certifications across different countries, allowing products certified by recognized bodies in Japan to be easily accepted in other Muslim-majority markets. This streamlined process is anticipated to significantly increase the ease of trade for halal products, both for importers and exporters, and enhance consumer trust in certified goods.
The Rising Halal Market in Japan
Japan has seen a steady rise in interest in halal-certified products, both domestically and among its visitors. This is largely driven by two key factors: the growing local Muslim community and the increasing number of Muslim tourists. According to the Pew Research Center, the Muslim population in Japan is projected to grow steadily, contributing to the rising demand for halal products. Additionally, the Japanese government has been actively promoting “Muslim-friendly tourism,” to cater to the needs of Muslim travelers who require halal food, prayer facilities, and other amenities.
A 2022 survey by Wunderman Thompson Commerce highlighted that Japanese brands are particularly popular among Muslim consumers, boasting an 84% impression rate — even outperforming Indonesian brands in popularity. This makes Japan a focal point in the halal industry, especially among the younger generation who are showing a growing preference for halal products. This trend indicates that the Japanese halal market is not only growing but also has a strong potential for expansion.
In 2021, it was reported that over 1,000 companies in Japan have obtained halal certification. Furthermore, about 30% of Japanese consumers are already showing interest in halal products, indicating a growing awareness and demand for ethically produced and certified goods. This interest is primarily driven by the younger demographic, which has shown a preference for clean, ethical, and sustainable products — attributes often associated with halal certification.
Related: Japan Islamic Trust: The Most Trusted Halal Certification Body in Japan
Indonesia-Japan Trade Relations
The bilateral trade relations between Indonesia and Japan have remained robust, with halal certification expected to further strengthen these ties. In 2023, Indonesia’s exports to Japan were valued at approximately $20.8 million, with mineral goods and oil as the leading export commodities. These two segments alone accounted for over 32% of the total exports. Halal-related products, including food items such as fish and seafood, represented around 7.26% of the total exports to Japan.
Japan’s imports from Indonesia in the same period stood at approximately $16.5 million. The dominant import commodities include machinery, mechanical tools, and vehicles, which account for over 52% of the imports. Imports connected to the halal industry represent around 4.39% of the total imports, indicating a significant opportunity for growth in the halal trade sector.
According to the Indonesian Ambassador to Japan, Heri Akhmadi, the Japanese halal market is projected to reach a value of $68 million by the end of 2024. This projection reflects a 6.3% increase from the previous year, driven by a combination of increased demand from local Muslim consumers and the growth in Muslim tourism.
Advantage for Japanese Companies
For Japanese companies, obtaining halal certification is not only a means to cater to the domestic Muslim population but also to tap into the larger global halal market. The global halal food and beverage market alone is projected to reach $2.5 trillion by 2024, according to the State of the Global Islamic Economy Report. This makes halal certification a strategic advantage for Japanese businesses looking to expand their reach to the 1.9 billion Muslims worldwide.
Japanese businesses have increasingly recognized this potential and have started working with recognized halal certification bodies to align their products with halal standards. This includes halal food products, cosmetics, pharmaceuticals, and even travel services that are tailored to the needs of Muslim tourists.
The MRA signing in October will further ease the process for Japanese companies to gain access to global markets where halal-certified products are in demand. It will also build consumer trust in the certified products, encouraging more businesses to pursue halal certification as a way to meet growing consumer expectations and market demands.
The Role of Halal Tourism in Japan
In addition to consumer products, halal tourism plays a crucial role in expanding Japan’s halal market. Japan has actively been promoting itself as a “Muslim-friendly” destination to attract tourists from Muslim-majority countries such as Indonesia, Malaysia, and the Middle East. Major cities like Tokyo, Kyoto, and Osaka have started offering halal-friendly options, from restaurants to hotels and prayer facilities.
The surge in halal tourism not only drives demand for halal-certified food and consumer products but also creates opportunities for other sectors like travel services, fashion, and beauty products. By aligning their offerings with halal standards, businesses in these sectors can enhance their appeal to Muslim travelers, who often seek destinations that cater to their religious needs.
Japan’s Halal Market Poised for Growth
The Indonesian Minister of Religion’s target to boost halal certification in Japan by 200% reflects the growing potential and opportunity in the Japanese halal market. As more Japanese companies pursue halal certification to cater to both domestic and international consumers, the overall growth in halal products is expected to rise substantially.
With the anticipated signing of the Mutual Recognition Agreement (MRA) and the continuous rise in Muslim tourism, Japan is set to become a significant player in the global halal market. This growth not only strengthens trade relations between Indonesia and Japan but also opens up lucrative opportunities for businesses looking to tap into the expanding demand for halal-certified goods.
For Japanese companies, gaining halal certification is not just about meeting religious dietary requirements — it’s about accessing a global market worth trillions of dollars, driving ethical consumerism, and building a bridge between cultures through shared economic interests. The future of halal certification in Japan looks promising, signaling a new era of growth and opportunity in the halal industry.
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