Unlocking Bangladesh’s Potential in Halal Food Exports: Opportunities and Challenges

Bangladesh has significant potential to tap into the growing global halal food market as a Muslim-majority country with a robust agricultural sector and familiarity with halal consumption. The halal food market is forecasted to grow from US$ 2.71 trillion in 2024 to US$ 5.91 trillion by 2033, driven by a rising demand for halal-certified products among Muslims and non-Muslims, and increased focus on food safety and ethical consumption. [1]

In Arabic, halal means ‘lawful’ or ‘permitted’ under Islamic teachings. In the context of food, halal refers to items that comply with Islamic dietary laws. [2] While many foods like fruits, vegetables and grains are inherently halal, meat must come from selected animals (e.g., cattle, camels and poultry) that are treated humanely and slaughtered in the name of Allah according to Islamic guidelines (zabiha), by cutting across the animal’s throat to ensure swift drainage of blood. [3]  The opposite of halal is ‘haram’ (forbidden), which includes prohibited items like pork, insects, reptiles, carnivores, and alcohol. [4] Fish fed with pork or impure animal derivatives are also considered haram. [5]      

While the global halal industry spans many sectors including food, pharmaceuticals, finance, tourism, cosmetics, fashion, etc., Bangladesh is particularly well-positioned to expand its halal food exports, thanks to its diversified agriculture, well-established livestock and dairy industries, fertile land, extensive river networks, and cost-competitive labor.

Market size of halal food

The global halal food market is thriving. OIC (Organisation of Islamic Cooperation) members imported US$293.6 billion in halal food in 2023, projected to reach USD 442.3 billion by 2028 at 8.5% annual growth.[6]  Indonesia’s annual halal food expenditure surpassed $159 billion in 2023. Europe’s halal food market is worth approximately $66 billion. [7]  France leads the market, accounting for around $17 billion. In the United States, Muslims spend around $13 billion on halal food each year.

Performance of global market players

The top buyers of halal food from OIC are Saudi Arabia, Indonesia, Turkey, Malaysia, the United Arab Emirates (UAE), Egypt, Iran, Iraq, Algeria and Morocco. [8]  The top suppliers to OIC markets are Brazil, India, Russia, USA, Turkey, UAE, China, Indonesia, Australia and Argentina. Notably, Indonesia is the largest national market by expenditure on halal food, followed by Bangladesh and Egypt. Top halal food items exported to OIC countries are cereals (21.22%), animal and vegetable oils (10.07%), sugar (7.07%), followed by oil-seeds and oleaginous fruits (6.51%), dairy and animal products (6.25%), and industrial residues and animal feed (5.89%). 

In Brazil, halal certification is provided by FAMBRAS Halal, which functions under FAMBRAS (The Federation of Muslim Associations in Brazil). FAMBRAS Halal is accredited by the Gulf Cooperation Council Accreditation Center (GAC), Turkey’s Halal Accreditation Agency (HAK) as well as JAKIM (The Department of Islamic Development Malaysia). [9]  Other certifiers in Brazil include the Latin American Islamic Information Center (CDIAL Halal) and the Islamic Inspection Service (SIILHalal).  [10]

India has several halal certification bodies for businesses, including the Jamiat Ulama-i-Hind Halal Trust. For halal meat and meat products, Indian exporters can export to 15 designated countries, including Bangladesh, only after obtaining certification under the “India Conformity Assessment Scheme (I-CAS)-Halal” of the “Quality Council of India (QCI)” . [11] After shipment, exporters must share their I-CAS Halal certificates with buyers, which are issued by certification bodies accredited by the National Accreditation Board for Certification Bodies (NABCB). Additionally, exporters must comply with the importing country’s halal regulations and, where applicable, obtain certificates approved by the authorities of the importing country.

Although halal-certified food is consumed principally by Muslims, Muslim-majority countries are lagging behind in their exports. However, several Muslim countries like Malaysia [12]  and Indonesia [13] have taken initiatives to capture the global halal market by establishing internationally recognized halal accreditation and certification bodies, offering financial incentives to halal product exporters, enforcing strict compliance with halal standards, etc. Notably, Malaysia’s JAKIM and Indonesia’s Halal Product Assurance Organizing Agency (BPJPH) not only certify local businesses but also accredit foreign halal certifying authorities. For example, JAKIM has accredited Bangladesh’s Islamic Foundation. [14]

Turkey, the only Muslim-majority country among the top 10 exporters of halal food, established HAK to accredit Turkish and foreign halal certification bodies, in line with the standards of SMIIC (The Standards and Metrology Institute for Islamic Countries).[15] SMIIC aims to achieve harmonization and mutual recognition of standards between OIC (Organisation of Islamic Cooperation) countries to facilitate trade among them. [16]

Current state of Bangladesh’s halal exports 

Data on Bangladesh’s halal food exports is currently not available from any institutional framework. As of November 2021, Islamic Foundation has certified around 254 companies including packaged food, meat, fish, cosmetics, pharmaceutical and chemical companies. [17]  , while BSTI (Bangladesh Standards & Testing Institution) had certified 9 companies as of August,2023, including food, pharmaceutical and chemical companies. [18] Bangladeshi companies exported halal goods worth $843.03 million in FY 2022-23, mostly to Muslim countries. [19]  

Bangladesh’s leading food exports include fish and seafood; cereal and milk-based products (such as bread, pasta, and starch); fats and oils derived from animals, plants, and microbes; fruits and nuts; spices and tea; and, vegetables, roots and tubers. [20]  These five categories represent around 83% of the country’s food export. The primary markets for these items are India, EU, China, UK, Saudi Arabia, USA, and Japan.