Entering the Global Halal Market: 5 Mistakes Businesses Should Avoid

Some companies view halal certification simply as another document required to sell products in certain markets.

In reality, halal compliance goes beyond the certificate itself. It involves product integrity, sourcing, manufacturing processes and the way products are handled throughout the supply chain. Obtaining certification is an important step, but maintaining compliance requires ongoing attention and commitment.

Businesses should therefore integrate halal requirements into their everyday operations, from supplier selection and production to quality control and product handling. Halal should be part of the overall business strategy, not just a requirement to fulfil before entering a market.

A product's main ingredients may appear suitable, but other components, processing aids, additives and manufacturing practices may also affect its halal compliance.

Halal integrity extends throughout the supply chain, from ingredient sourcing and production to storage and transportation. Inadequate segregation, handling or cleaning procedures can create compliance risks.

Companies should pay close attention to ingredient origins, supplier documentation, production processes and storage conditions. Employee training is equally important to ensure that halal requirements are understood and consistently followed across all relevant operations.

Not all halal certificates are automatically recognised in every country. Different markets have their own requirements regarding halal certification bodies, their accreditation and their recognition by relevant authorities.

A company may invest time and money in certification only to discover that its chosen certification body is not recognised in its intended export market. This can result in additional costs, delays and difficulties when entering new markets.

Before selecting a certification body, businesses should identify their target markets and verify the applicable requirements. The certification body must hold the relevant accreditation and have the necessary recognition for the destination market.

For example, companies exporting to Malaysia should check the recognition requirements established by JAKIM (Department of Islamic Development Malaysia). Businesses targeting Indonesia need to consider the applicable requirements of BPJPH (Halal Product Assurance Agency). For Gulf markets, relevant accreditation and recognition requirements, including those involving the Gulf Accreditation Center (GAC), should also be assessed.

Choosing the right certification partner from the beginning can save considerable time and resources during international expansion.

A marketing strategy that works in one country may not necessarily resonate with customers in another. Consumer preferences, purchasing habits, expectations and market conditions can vary significantly between regions.

A halal certificate does not automatically guarantee customer interest or market success. Businesses also need to communicate the value of their products in a way that reflects local market expectations.

Understanding the target audience, local language, pricing, product preferences, distribution channels and communication habits is essential when introducing a brand to a new market. Local research and partnerships can provide valuable insights and help companies avoid costly marketing mistakes.

Food and beverages represent an important part of the halal economy, but business opportunities extend well beyond this sector.

Cosmetics, personal care, pharmaceuticals, tourism, logistics and other industries also offer opportunities where halal requirements and market demand are relevant.

Companies that focus exclusively on food may overlook promising opportunities in other sectors. Exploring these areas can open new possibilities for product development, market expansion and business diversification.

The key is to understand how halal requirements apply to each industry and assess the actual market potential before making investment decisions.