Used to be mainly in the context of food & beverages, Halal has now made headway into pharmaceuticals as Muslims become more discerning as to what goes into their bodies.
The worldwide market for Halal Pharmaceuticals is expected to grow at a compound annual growth rate (CAGR) of roughly 14.5% over the next five years, will reach 540 million US$ in 2023, from 240 million US$ in 2017, according to a new GIR (Global Info Research) study.
To overcome the ambiguity that has shrouded this market for a long time, the Department of Standards of Malaysia has developed a guideline for Halal certification & compliance and this has served as a reference for the pharmaceuticals industry. This certification guideline has led to increased confidence among consumers. Malaysia is one of the most lucrative markets for Halal pharmaceutical products in terms of production and consumption.
A robust research initiative is needed to develop new products in order for the Halal pharmaceuticals to develop a viable business model and to reach a wider range of consumers. Growth capital is needed in R&D, expanding manufacturing capabilities and penetrating new markets. This is where multinational companies have a role to play in providing Halal products as well as an investor.
Investments from pharmaceutical companies to spearhead innovation to cater to the increased demand have come pouring in, such as the first Halal vaccine manufacturing centre to be built in Malaysia and exported around the world.
JAKIM, Malaysia’s religious authority, recently gave out Halal license to Chemical Company of Malaysia (CCM) for the manufacture of prescription medicine. While UAE’s Emirates Authority for Standardization and Metrology (ESMA) will require all Halal imports to be certified.
The industry has taken huge leaps forward as of late, but if more companies get involved, it could go even further, opening up whole new possibilities.