KUALA LUMPUR, April 4 — The global Muslim market spent US$83 billion on pharmaceuticals alone in 2016 and the sum is projected to grow by eight per cent year-on-year to hit US$132 billion by 2022, according to Thomson Reuters. (US$1 = RM3.86).
Its senior research analyst (Islamic Finance), Abdulaziz Goni said innovation was occurring in the area of health vaccines across the halal pharmaceutical sector, hence paving the way for growth of the industry.
He said Malaysia was now ranked third best developed Islamic economy for halal pharmaceuticals and cosmetics, behind Singapore (#two) and United Arab Emirates (#one).
“The halal ingredient market remains a high growth segment, attracting new sources of supply.
“Robust and scaled halal ingredients proposition can experience substantial growth,” he said in a presentation on halal market insights titled ‘Halal Industry: Pharmaceuticals & Cosmetics Industry’, on the first day of the Malaysia International Halal Showcase (MIHAS) 2018, here, today.
MIHAS, the world’s largest halal trade show returns for its highly anticipated 15th edition from April 4-7 at the Malaysia International Trade and Exhibition Centre (MITEC), here.
Abdulaziz said while halal nutraceuticals (pharmaceutical-grade and standardised nutrients) had been identified as a major growth segment, the halal generics could broaden access to drugs in the Organisation of Islamic Countries (OIC) markets.
“Companies involved in the halal pharmaceutical industry can benefit from dedicated free zones for the halal pharmaceutical sector and substantial opportunities exist for Shariah-compliant funding, and research and development.
“While Muslims are concerned about the food they consume and what goes into their bodies, they are now increasingly aware that the cosmetic products they use, which are absorbed into the body, may not be halal or permissible.”
He said Muslim market spending on personal care and cosmetics amounted to US$57 billion in 2016 and was expected to increase to US$82 billion by 2022.
“With mainstream retailers and cosmetic companies embracing the halal term, the halal cosmetics are addressing broader lifestyle product opportunities.
“New products are emerging, including breathable nail polish. More Gulf Cooperation Council (GCC) perfumes are becoming halal certified, while halal regulations have been extended to cosmetic products and there also have been advancements in halal testing,” he shared. — Bernama