It’s no secret that Muslim consumers wield considerable spending power. The global Islamic economy is set to be worth over $3 trillion by 2021, according to a special Thomson Reuters report. As more brands wake up to the potential of Muslim consumers across the globe, they are also clocking onto the fact that it’s important to pay attention to consumer categories that are considered “halal” or “Islamic”. However, it doesn’t have to be difficult to tap into Muslim consumers within these segments.
In this post, we list 5 consumer categories where a wave of Muslim-friendly or ‘Halal’ offerings have taken the global Muslim consumer market by storm.
If your business is within one of these highly in demand sectors and not currently using specific growth strategies to tap into the global Islamic economy; then what are you waiting for?
Here are the categories we’ve seen a recent rise in demand for, and how you can tap into the market to create growth for your business.
1. Modest fashion
Fashion is one of the main big markets experiencing a rise in Muslim consumer potential, with Muslim millennials setting new trends in both Muslim and non-Muslim-majority countries. Muslim spend on clothing was at a staggering $270 billion in 2017, and is set to reach $361 billion by 2023. It’s also safe to say that Modest Fashion has become far more mainstream; with retailers like H&M worldwide, Macy’s USA and Marks & Spencer UK launching their own modest fashion lines to serve their Muslim audiences.
If you’re currently in the fashion sector with product lines that could be suitable for Muslims, advertising on Muslim websites could allow you to tap into a whole new audience with minimal or no changes to your existing brand messaging.
The Islamic economy is super up-to-date with the latest developments in technology; especially where Islamic finance is concerned. Increasing numbers of fintech startups are using blockchain technology for payments, to confirm halal compliance, or track food, cosmetics and pharmaceutical products from the manufacturing facility to the retailer. Smart technologies are being used to create clothing like the ‘smart hijab’ and into apps that use GPS systems that show the closest prayer facilities.
There’s no limit to the opportunities presented by the adoption of new technologies. If you’re in the technology sector, the key is to remain consistently visible to key Muslim segments as a lifestyle-agnostic product and capture them at key moments to remain top of mind for when creating new halal ventures.
3. Ethical products and services
The growing appetite across the West for ethical products and supply chains is a trend that the Islamic economy is philosophically aligned with.
So it’s no surprise that one look across Islamic startups from the past 10 years will quickly bring up myriad ethical-halal hybrid companies; from fintechs based on ethical, shariah-based principles, to halal meal-delivery companies tapping into the trend for vegan and vegetarian products.
If your brand is transitioning to more ethical business practices, put this forward as a key message in your advertising to Muslim audiences while using inclusive representation and marketing strategies to draw Muslim audiences to your offer.
4. Halal food
With Muslim spend on food and beverages growing at 6% and expected to reach US$1.9 trillion by 2023, the provision of Halal food inspires the existence of more businesses than any other sector of the Islamic economy.
Increasing numbers of products are halal certified, with the multinationals also starting to offer halal alternatives to their normal product range.
For Muslims in the West, it can currently feel like a minefield trying to ascertain whether a food product is halal or not.
Reading food labels with intense concentration at while grocery shopping or scouring the web for information are not uncommon for the average Muslim consumer.
The best strategy is transparency in this case; with clear labelling on packaging or clear, easy to find information online; on whether your offer is fully halal, partly halal or not halal at all.
5. Halal Travel
The Mastercard-Crescent Rating Global Muslim Travel Index (GTMI, 2017) mentioned that 10% of global travel spend can be traced back to Muslims, and that 121 million Muslim tourists travelled somewhere in 2016 alone; with that figure set to go up to 156 million in 2020.
The Halal travel economy was also claimed to stand at $177 billion in 2017, and is forecast to reach US$274 billion by 2023. While city breaks (amongst others) are popular for millennial Muslims in the West; in the Middle East and beyond, Muslim-friendly beach resorts are particularly in vogue.
According to CrescentRating, if your business is in the hospitality industry then providing halal food at the very least offers the biggest ticket to being seen as attractive for Muslim travellers.
After this, making prayer facilities, Muslim-friendly washrooms and Ramadan-related offerings available could present further opportunities.
We’ve seen a huge increase in Muslim consumer spend in the modest fashion, technology, ethical products, halal food and travel industries; with all of these industries growing rapidly as the Muslim world is faced with a growing middle class and rapidly increasing population.
Tapping into these industries to take advantage of the opportunities means staying visible to key Muslim segments whether online or offline, and offering product extensions where needs are currently being underserved.
Is your business in any of the above sectors? If the answer is yes and you want to increase visibility with Muslim consumers online, send us an email at firstname.lastname@example.org or use the contact form to set up a consultation with one of our experts.