Consumer spending in global halal economy grew 9.5% year on year to US$2.29 trillion in 2022 (halal economy = products and services based on Islamic ethics and values)
- Domestically, the halal lifestyle consumer market, estimated at $63.6 billion in 2022, is the 10th largest globally
- US was the 3rd largest exporter of food and beverages to major halal consumer markets in 2022, with $15.4 billion exports
Washington DC; April 17th, 2024 – DinarStandard, a NJ-based research and advisory firm, presented US’s opportunity findings from its latest edition of the State of the Global Islamic Economy Report 2023/2024 at an event jointly organized with the USDA (the US Department of Agriculture), on April 17th.
First launched in 2013, the tenth edition of the report (2023/24) presents an annual update on the halal ethical economy – encompassing halal products, Islamic finance, and lifestyle sectors being driven by the 2 billion Muslim consumers extending to include a wider global ethical consumer market. This year’s SGIE report indicates that Muslims spent US$2.29 trillion in 2022 on food, pharmaceuticals, cosmetics, modest fashion, travel, and media. Islamic finance assets are estimated to have reached US$3.96 trillion in 2021/22 and will grow to US$5.94 trillion by 2025/26.
The report’s national benchmarking Global Islamic Economy Indicator (GIEI) of 81 countries ranked the US 26th overall. The US ranked 27th in Halal Food, 11th in Islamic-themed media and recreation, and 15th in modest fashion. Malaysia retained the top spot for the 10th consecutive year, followed by Saudi Arabia, Indonesia and the UAE.
Key developments from the US halal economy span sectors from food to finance. HalalGuys represents a successful QSR franchise model that now has almost 100 branches. Examples of other successful halal brands emerging from the US include Haute Hijab in modest fashion and Wahed in Islamic ethical fintech sectors.
Import of halal-related products by the OIC member (Muslim majority) countries was US$359 billion in 2022 and is set to grow at 7.6% CAGR to reach US$492 billion by 2027. The US exported $20.8 billion worth of halal products to the OIC in 2022 ranking 4th globally. The top halal products export destination markets were Indonesia, Egypt, Saudi Arabia, UAE, and Malaysia.
Investments in halal economy-relevant companies increased significantly, reaching $25.9 billion in 2022/23, representing a 128% year-on-year growth. The US ranks #8 with a growth of 17% in 2022/23 compared to the prior year.
Referring to the 10th anniversary of the SGIE report, Rafi-uddin Shikoh, CEO and Managing Director of DinarStandard, said: “The SGIE report, with the grace of God Almighty, has evolved into a global reference point to evaluate the Islamic Economy’s annual developments globally across the seven sectors covered while highlighting potential areas of development. Over the past decade, the Report has reached over 113,000 readers across 85 countries, with over 15,670 report downloads and over 1,570 media mentions. Muslim spending has increased from US$1.62 trillion in 2012 to US$2.29 trillion a decade later.”
The SGIE report also highlights the halal economy’s social impact developments in addressing the United Nations’ 17 Sustainable Development Goals (SDGs), including initiatives addressing the exacerbated poverty and food security crisis, which the halal economy is showing promising signs of impact. The SGIE report 2023/24 has been produced in partnership with SalaamGateway.com, the largest Islamic economy news and media platform, and is supported by Dubai’s Department of Economy and Tourism (DET). The global strategic partner of the report this year is US-based halal certifier IFANCA.
The State of the Global Islamic Economy Report 2023/2024 is available for download at https://salaamgateway.com/specialcoverage/SGIE23
