Saturday 23 October 2021

The rise of Thai halal industry

Dubai, UAE, September 19, 2021

In the global halal marketplace, Thailand is emerging as a major supplier of a wide range of products and services deemed permissible for consumption under Islamic law.

Despite having a Muslim minority domestically, Thailand’s government and private sector have leveraged the country’s manufacturing, quality assurance and marketing experience as well as its rich culinary traditions in taking advantage of a growing global appetite for halal products, according to the Department of Thai Trade Centre, MENA.

Currently, Thailand is the world’s 12th leading global exporter of halal products, and 5th largest producer of halal foods. According to its Board of Investment, the country also ranks first for halal export among ASEAN countries. Halal food currently accounts for 20% of Thailand’s global food exports with more than 60% of halal exports going to Indonesia, Malaysia, and Brunei.

And with a market that is expected to grow 20% annually according to the latest Global Islamic Report, Thailand is hoping to take a bigger slice of the pie. For 2021, the country is targeting a 3% increase in its exports - valued at $3.8 billion - to OIC countries, its second biggest export market next to China.

Among Thailand’s notable food exports include rice, sweet corn, tapioca products, sugar, canned tuna, processed fruit and vegetable products as well as seasonings. It has also been aggressively expanding its halal portfolio with products and services in other sectors, such as cosmetics, poultry and plant-based meat, among others.

Thai halal initiatives

The Central Islamic Council of Thailand (CICOT) which has been established under the Islamic Act is the country’s certification authority. Its main responsibility is to ensure that Thai Halal products are produced according to the requirements of Islamic law.      

In a strategic move, CICOT has sought accreditation with certification authorities in Muslim countries, such as the Emirates Authority for Standardization and Metrology in the UAE, to ensure Thai exporters and their products meet their destination markets’ standard and regulations.

One of Thailand’s top state universities also hosts a dedicated facility that conducts halal inspection and certification processes. A world first, the Halal Science Centre Chulalongkorn University helps maintain halal standards, using the latest technologies, for all its outbound products, benefitting some 5,000 companies producing over 150,000 Made in Thailand Halal products and services.

Since detecting haram ingredients has become more sophisticated with advances in methodologies and technological innovations, the centre is a significant investment and a bold initiative on Thailand’s part, as it seeks to become more competitive in producing truly authentic halal products.

Challenges and opportunities

Just like the rest of the world, the global halal industry has also been affected by the Coronavirus pandemic. But the increasing adoption of digital platforms has somehow mitigated the impact, a window of opportunity that Thailand has been quick to leverage.

Since the early part of this year, Thailand’s Ministry of Commerce, by the Department of Business Development, has been aggressively pushing small and medium sized manufactures to utilise online platforms to market their products, to enable them to continue to tap existing markets but have limited importations because of restrictions, or to prospect new ones that they have not previously explored.

The Federation of Thai Industries is also optimistic about the continued robustness of Thailand’s halal exports, given that more than 20,000 Thai restaurants are operating around the world, a captive market that halal exporters can also look into as halal products are also gaining in popularity even among non-Muslims.

But as Thailand is already a popular holiday destination for Muslim travellers, halal manufacturers can also look into expanding their portfolio domestically by supplying halal food and other products to local restaurants, hotels and resorts.

Innovation will be a critical factor for Thailand’s continued success and will need to encompass the whole halal industry ecosystem, from manufacturing to product development as well as logistics and marketing.

With a robust support system in place and an established reputation for certified-halal quality products, Thailand will no doubt see its halal industry rise to greater prominence and competitiveness.--TradeArabia News Service



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