ISLAMABAD, Oct 4 (APP): Global spending on Islamic food and lifestyle is projected to hit $3 trillion in five years as the Islamic finance sector, which has assets currently worth $2 trillion, is poised to touch $3.3 trillion by 2021 on the back of growing awareness about its product offerings.
Khaleej Times on Tuesday reported that the Dubai Islamic Economy Development Centre in its ‘State of the Global Islamic Economy Report’ prepared in partnership with Thomson Reuters and DinarStandard estimates that global Muslim spending on food and beverages is expected to reach $1.9 trillion by 2021.
The report’s findings show that global Muslim spending across sectors was over $1.9 trillion in 2015. Food and beverage tops Muslim spending by category, at $1.17 trillion in 2015, followed by clothing and apparel at $243 billion, media and recreation at $189 billion, travel at $151 billion and spending on pharmaceuticals and cosmetics at $78 billion.
The study, being released in the lead-up to the Global Islamic Economy Summit 2016 (GIES), set to take place on October 11 and 12 at the Madinat Jumeirah in Dubai, also estimated the revenue generated by halal-certified food and beverage companies worldwide to be at $415 billion.
“Halal food, the largest Islamic economy pillar by revenue, has shown clear signs of maturity with increased private equity investments in the sector. Upgrades in regulations are also occurring, with the introduction of accreditation to oversee certifiers set to reduce complexity and encourage more players to enter the halal food industry,” said the report.
The Islamic economy continues to evolve, driven by young Muslims asserting their values, and requiring companies to provide products and services that meet their faith-based needs and no longer being considered niche segments in the global economy.
“Islamic economy is one of the fastest-growing tranches of the global economy. The convergence between the Islamic economic sectors is strongly expected to enhance the Islamic economy space going forward,” managing director, Middle East and North Africa, Thomson Reuters, Nadim Najjar said.
While halal travel is a niche sector building momentum, it is expected to grow with Muslim spend on outbound travel expected to reach $243 billion by 2021.
Modest fashion is gaining mainstream interest. Spending on modest fashion is projected to reach $368 billion by 2021.
Muslim spending on pharmaceutical and cosmetics products is expected to reach $213 billion by 2021 in aggregate.
Halal media and recreation is driving a positive reinforcement of Muslims. As new genres are addressed, Muslim spending is expected to reach $262 billion by 2021.