Consumer Behavior in the Halal Industry Current Era
Halal is any object or activity that is permitted to be used or carried out, in the Islamic religion. Halal is an Arabic word which means lawful and permissible. Halal is a Quranic term which means permissible, permissible, lawful or lawful. The opposite is haram (prohibited, unlawful or illegal). According to Sharia, all issues concerning Halal or Haram and even all disputes must refer to the Quran and Sunnah. The number of halal lifestyles in the current global trend has increased the demand for goods and services with a halal lifestyle which is a business opportunity that serves business people and related industries, fulfilling various needs and facilities at their destination. Awareness of the importance of Sharia values in life has turned into a Halal lifestyle. Indonesian market has encouraged many large companies to include halal certification in their products which indirectly makes the halal market grow. The Muslim population has the fastest growing consumer segment in the global market. If any business is not targeting this segment, it is considered a missed opportunity.
The global halal market has emerged as a new growth sector in the global economy and is creating a strong presence in developed countries. The most promising halal market is the fast economic growth in Asia, the Middle East, Europe and America. With a growing consumer base, and increasing growth in many parts of the world, this industry will become a competitive force in the world’s international trade. Every Muslim must ensure that what they eat comes from a Halal source. In the Islamic religion not only in checking the ingredients, but also to ensure that the entire process is in accordance with sharia principles. The halal industry has now expanded beyond the food sector to include pharmaceuticals, cosmetics, health products, toiletries and medical devices as well as service sector components such as logistics, marketing, print and electronic media, packaging, branding, and financing. The current halal industry has expanded further towards lifestyle offerings including halal travel and hospitality services as well as fashion. This development was fueled by the changing mindset of Muslim consumers as well as the worldwide trend of ethical consumers.
Factors that influence consumer consumption patterns in the Halal Industry:
1) Religion
Companies are starting to understand the huge opportunity represented by Muslim consumers. The global Muslim population is expected to grow by around 35 per cent over the next 20 years, increasing from 1.6 billion in 2010 to 2.2 billion in 2030, or 26.4 per cent of the projected total world population of 8.3 billion. By 2050, the Muslim population could grow to 2.6 billion and represent nearly 30 percent of the projected population globally (Fleishman Hillard Majlis 2011) many of whom will attach great importance to the halal certification of the products they buy.
2) Cosmetics
Within the scope of halal cosmetics, the concept includes components in its production such as halal composition and the use of permitted ingredients that must be made, stored, packaged and shipped in accordance with Sharia requirements according to the Qur’an and Sunnah. Interestingly, halal cosmetics are also gaining momentum in all circles, one of which is modern consumers who are aware of environmental ethics and are willing to pay high prices for organic, natural and clean cosmetic products that suit their modern lifestyle.
3) Tourism and Travel
In the tourism sector, Halal is currently gaining popularity, and is now fast becoming a novelty in the tourism industry in general. It refers to tourism products that provide hospitality services in accordance with Islamic beliefs and sharia-compliant practices. These include serving Halal food, having separate swimming pools, spas and recreational activities for men and women, alcohol-free dining areas, prayer facilities, and even women-only beach areas with Islamic swimming etiquette. Traditionally, halal tourism is often associated with the Hajj and Umrah pilgrimages.
So it can be arranged in the halal industry in the current era has developed far beyond the food sector which is increasingly expanding the potential of the halal economy. Halal no longer only applies to the production and consumption of food. The halal industry has now developed and has even gone beyond food into the realm of business and commerce and is fast becoming a global symbol of quality assurance and a lifestyle choice for Muslims and non-Muslims, in other words, for all people.