Global Halal Industry : Halal Opportunity

Transcription

1 Global Halal Industry : by Rohaizad Hassan, Director of Halal LSG Group

2 Today s Presentation LSG Sky Chefs Global Halal Industry Opportunities for German Companies Who are we? What is Halal? Commercial Options Driving factors Conclusion Best-In Class Appendix 1

3 Who are we? 2

4 Whatever it is, you can count on us Brand Name LSG Sky Chefs Shareholder Lufthansa AG (100%) Group Sales bn Market Share 29% Presence 214 airports in 51 countries Customer Service Centers/ Delivery Points 210 Airline Meals 578 mil (p.a.) Airline Customers over Employees 32,843 (excluding JVs) Experience more than 70 years

5 Delivering the taste of the world all over the world North/ Latin America Europe/ Middle East/ Africa Asia/ Pacific Wholly owned facilities 47 Joint venture facilities 36 Delivery 8 Number of CSCs 83 Wholly owned facilities 42 Joint venture facilities 39 Strategic partnerships 2 Delivery 16 Number of CSCs 81 Wholly owned facilities 9 Joint venture facilities 26 Strategic partnerships 2 Number of CSCs 36 4

6 5 Air France/ KLM Air New Zealand Aeroflot Air Canada Air China Alitalia Alaska All Nippon Airways American Asiana British Airways/ Iberia Brussels Cathay Pacific China Eastern China Southern COPA Delta Air Lines Dragonair Emirates Ethiopian Etihad Finnair Germanwings Hainan Japan Monarch Rossyia Russian Ryanair Sichuan Korean Air LATAM Group Lufthansa Qantas Qatar Saudi Arabian Singapore Sun Express Swiss Intl. TAAG Angola TAP Thai Intl. Airways Thomas Cook TUI Turkish United Virgin Virgin America Atlantic 7 Eleven Starbucks Customers whose customers can enjoy a better day

7 Northport, Malaysia Global Halal Industry

8 What is Halal? In the Quran, mankind is introduced with the concept of Halalan Toyibban, one of the path for way of life in Islam. Halalan or Halal is an arabic word which means permissible, lawful. It also refers to things and actions permitted by Syariah Law; Whereas Toyibban refers to the food safety factor that plays a significant contributor in determining the toyibban i.e. wholesome (safe, clean, nutritious, quality) aspects of the food. Based on a study, Halal food considerations most important when traveling for leisure Among considerations that are most important for leisure travel Halal food (66.8%), overall trip price (52.9%), and a Muslim-friendly experience (49.1%) stand out as top considerations. Source: Global Muslim Lifestyle Travel Market Halal : Culture Awareness

9 8 What is Halal? Muslims believe that their physical intake directly affects their spiritual life. That's why Muslim consumers are so intent on ensuring what they consume is halal. Eco-Halal: How Food Brands Can Market to Muslims 2012 Halal Trend ReligiousRequirements Lifestyle Choice Halal : Culture Awareness

10 Driving force of Halal Industry 3. Emergence of World Halal Players 2. Growing economic development in Muslim countries Between 1990 and 2010, GDP per capita for Muslims worldwide has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8% ** Muslim Lifestyles : Tourism & Cuisine The Growth of Halal Eco-System 1. Sizeable and growing Muslim population Muslim population (2012) = 2.1 bil Forecasted to grow at twice the rate by 2030 representing 27% of global population * 4. Marketing & Promotions Global Halal Trade 2013 US$2.3 Trillion*** *Source: Pew Research Centre **Source: United Nation and IMF *** Source : HDC 9

11 10 The Halal industry has witnessed an increased demand. Firstly, the Muslim Population has spread from the Middle East region extending to many Western and European countries Sizeable and growing Muslim population The Halal Food market in Europe was valued at US$68.13 billion in It is expected to reach US$72.84 billion by 2016, growing at a CAGR of 1.68 percent.* Turkish descent in Germany have an estimated purchasing power of 20 billion per year.** *Source : Global Halal Food Market ** Source : Speigel Map Source : HDC

12 11 Over the years the demographics of Muslim consumer have significantly shifted from the low to middle class population across the world, including Western nations such as the USA and France Growing economic development in Muslim countries Source: AT Kearney, Addressing the Muslims Market

13 In addition, countries that are key producers and exporters of processed food are also key markets for Halal exporters especially for ingredients and industrial chemicals Emergence of World Halal Players Halal Processed Food Giants : Source: Pew Templeton, Global Religious Futures: Future Global Muslim Population; BusinessVibes Regulated by > 150 Certification Body Globally Major Meat Producer : 12

14 Best-In Class Company Nestle, for example, has devoted 85 of its 482 global processing plants to Halal products. Nestle's halal sales are estimated to be in excess of $5 billion annually. Frits Van Dijk, Executive Vice President, Nestle Suisse 13

15 Marketing & Promotions Halal Trend (Attributes) Promotions High Awareness 14 Halal Apps & Social Media

16 Muslim Lifestyles : Tourism & Cuisine The global Muslim travel market was worth $140bn in 2013 (excluding Hajj and Umrah, which alone is worth $16bn), which represents 11.5 percent of global expenditure. Prediction that the segment is expected to be worth $238bn in 2019 Source: Global Muslim Lifestyle Travel Market) Muslim tourists globally represent a major niche market a market that has a young demographic, is growing in affluence, and is increasingly asserting its unique needs on the travel, tourism and hospitality market. 15

17 The Growth of Halal Eco-System The eco-system is integrated in various clusters and industries. The eco-system is the catalyst to create a sustainable supply-chains that restores the integrity for Halal with the enabler s supports. On-Going Government Agenda : Malaysia Global Halal Hub Cluster Development Market Access Certification Advance Program UAE Economic Zone Logistic & Hub Saudi Arabia World Largest Knowledge City Far East : Japan, Korea & China Halal Cuisine Japan : Olympic (Halal Friendly) & New Business Flagship China : Halal Tourism & Economic Zone 16

18 Opportunities for German Companies 17

19 18 Currently the world Halal demand and supply gap is ~80% or approximately USD654 billion. As such, there is a huge opportunity for exporters to try to meet the world Halal demand. 1. Existing Gaps in Halal Industry Sources and Assumptions: World Halal demand refers to data from various sources (refer to individual product group analysis) and Ipsos analysis. Assumption; world Halal demand = 10% of world demand. World Halal supply refers to Ipsos analysis; assumption Malaysia Halal export = 5% of total world Halal supply for Food & Beverages, Industrial Chemical, Cosmetic & Personal Care and Pharmaceutical and15% for Ingredients. Malaysia Halal export refers to data from HDC, DOS, JAKIM, Custom Department & MATRADE (Halal Product Statistic Coordination Committee) and Ipsos analysis.

20 19 Currently the world Halal demand and supply gap is ~80% or approximately USD654 billion. As such, there is a huge opportunity for exporters to try to meet the world Halal demand. 1. Existing Gaps in Halal Industry Sources and Assumptions: World Halal demand refers to data from various sources (refer to individual product group analysis) and Ipsos analysis. Assumption; world Halal demand = 10% of world demand. World Halal supply refers to Ipsos analysis; assumption Malaysia Halal export = 5% of total world Halal supply for Food & Beverages, Industrial Chemical, Cosmetic & Personal Care and Pharmaceutical and15% for Ingredients. Malaysia Halal export refers to data from HDC, DOS, JAKIM, Custom Department & MATRADE (Halal Product Statistic Coordination Committee) and Ipsos analysis.

21 20 In terms of market size, Muslim spending on pharmaceutical products was estimated at $75 billion in 2014, representing 6.7 percent of global spend. 2. Existing Gaps in Biotechnology ie. Halal Vaccine Indicative Muslim spend on vaccines was $1.8 billion in 2014 and this is projected to grow to $2.3 billion by 2020, according to Salaam Gateway analysis. Halal vaccine supplies at the moment only have a fulfilment rate less than 5% of its global needs. Source : Seban Scaria, Global Islamic Economy Gateway Jan 2016

22 Exploding market of B2B is still far beyond grasp to fulfil the needs of Halal online demands that currently only spearheaded by 2 renowned projects 3. European Halal Drop-Shipping To combine drop-shipping with B2B that connects with European MNC or SME specifically with Halal compliant products. This is a game changer that shall foster the growth of Halal supply chain. Traceability would be an added value to support the product origin information. At the moment : 1. Global Halal Data Pool connects with GS1 database in Brussels and the data will be synchronized with the Halal companies listing under the certification bodies around world. 2. Zilzar is a fairly new B2B / B2C platform Successful Model by a German Company : 3. Rocket Internet is a German based company located in Singapore. They are the largest online provider in Asia Pacific. More likely to be the low-hanging fruit. 21

23 Malaysian Global Halal Export worth 9.5 Billion per year, it s Halal Export to Europe is hovering around 0,7 Bil to 1,0 Bil. Less than 5 European Halaloperated companies have local presence in Malaysia. 4. Participating in the Global Halal Hub Top Malaysian Halal Export to Europe in Netherlands 338 Mil 2. Germany 73 Mil 3. Spain 52 Mil 4. United Kingdom 45 Mil 5. France 39 Mil Source : Halal Datawarehouse HDC, Government of Malaysia 2013 Why Malaysia? Halal Parks with various clusters Specialized Grants Recognized Halal Logo Halal Talents-ready Modern Infrastructure Market Access : MIHAS Global Halal Support Centre Dedicated agency : HDC 22

24 Why Malaysia : Modern Infrastructure The new KL Metropolis Comprising a world-class exhibition space, architecturally advanced office buildings, luxury condominiums, boutique hotels, museum, art complexes and a specialist healthcare precinct along with a variety of shopping, dining and entertainment experiences, this breakthrough development also boasts an landmark mixed used tower, which will further cement KL Metropolis as Malaysia s new iconic landmark. 23

25 Conclusion Halal Park, Iskandar Corridor, Malaysia National Halal Park, Port Klang, Malaysia Estimated Halal Market in Europe is approximately 70 Bil per annum whereas the Malaysian Halal Export outbound to Europe is ranging from 0,7 Bil to 1,0 Billion. There are an enormous potentials in Halal Industry and it is growing rapidly. Consider to be in Malaysia where all Halal Industry initiatives and support can make you another global leader in years to come. 24

26 Vielen Dank Rohaizad Hassan Director of Halal LSG Sky Chefs LSG Lufthansa Service Holding AG FRA ZC OQ Dornhofstrasse Neu-Isenburg Germany Phone: Fax: Mobile:

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