Why Thailand could become a halal food powerhouse

Thailand is emerging as a competitive force in the global halal food market, looking to capture a share of the booming sector.

Offering more than 160,000 halal-certified products, the country aims to position itself as a regional halal hub over the next four years, leveraging its proximity to Muslim-majority Southeast Asian countries as well as increasing food exports to the Middle East.

“Under the current government, the Industrial Economics Bureau of the Ministry of Industry has established a new strategy that will see the Thai halal industry become the halal center in ASEAN by 2028,” Dr. Winai Dahlan, director of the Halal Science Center at Chulalongkorn University says Salaam Gate.

To achieve this vision, the Office of Industrial Economics intends to develop the local halal industry to ensure the highest quality and standards, as well as reduce restrictions and change regulations regarding halal accreditation, says Dahlan.

The Halal Science Center is a government-funded facility that plays a key role in developing halal standardization systems in Thailand.

In early 2024, the Thai government established the National Halal Industry Committee to lead the development of the halal food sector and the Thai Halal Industry Center to promote local food products internationally.

These efforts are part of a broader strategy to develop and promote a variety of halal products and services, including fashion and tourism, as well as the development of a halal economic corridor through the southern border provinces of Yala, Pattani, Narathiwat, Satun and parts of Songkhla. The plan is expected to increase GDP by 1.2% by 2028, while creating approximately 100,000 jobs annually.

Halal prospects in Thailand
About 64,000 Thai companies are halal certified for their food products	There are over 160,000 halal certified products	Certified by the Central Islamic Council of Thailand
Source: Department for the Promotion of International Trade

Trade promotion

Despite being a predominantly Buddhist country where Muslims make up only 5.8% of the population, Thailand has undertaken strategic initiatives to develop the halal food sector and is conducting intensive trade promotion campaigns to seize opportunities in promising markets.

“The halal food sector is a large market where consumers have a lot of purchasing power. It accounts for a global market value of approximately $1.2 trillion,” says Phusit Ratanakul Sereroengrit, director general of Thailand’s Department of International Trade Promotion (DITP). Salaam Gate.

“DITP has implemented various projects to enhance the potential of Thai halal products in international markets, including building the brand of such products and promoting their export to target countries.”

DITP is subordinated to the Ministry of Trade.

For example, according to data from the Ministry of Commerce, 134 companies participated in the Thailand Pavilion at the Gulfood exhibition held in Dubai in February, and trade negotiations reached a total value of $207.6 million. These include immediate orders totaling approximately $9.2 million.

Next on the DITP agenda is the promotion of Thai halal food products at the upcoming Thaifex 2024, one of the largest F&B industry events in Asia, as well as among foreign stores and importers, with meetings scheduled in key cities of Chicago (USA) and Doha (Qatar). ) in the next month.

As a major promoter of Thai exports, DITP also organizes business partner matching and trade negotiation activities for halal F&B products.

Following a series of such meetings in the MENA region in April 2024 – attended by 10 foreign importers and 21 Thai exporters for a total order value of USD 25.9 million – DITP has planned similar events in Southeast Asia in July and in Asia Eastern and South Asia in September.

“The Muslim market in ASEAN is huge, and Thailand has a significant advantage in terms of logistics and product diversity to meet the needs of this consumer segment,” says Sereroengrit.

“Thanks to the efforts of the Central Islamic Council of Thailand (CICOT) and institutions that inspect and certify various halal standards in accordance with Islamic regulations, halal products have become one of Thailand’s key export sectors and have won the trust of consumers around the world for their quality and standards.”

Thailand’s free economic system, which allows for fair competition and is based on open market mechanisms, has also allowed the private sector to contribute to the development of the halal food sector.

“The state is responsible for controlling and preventing the creation of advantages and disadvantages for an individual enterprise or group of enterprises and for stimulating competition in terms of price, quality and style of products. It plays a small role in determining the direction of the country’s industrial development,” explains Dahlan.

He adds that the business case for halal is moving in the same direction.

“The rapid development of halal food in Thailand is therefore the work of the private sector – whether through agricultural or industrial production; the service sector and the sector of Islamic organizations to ensure the halality of products. The state only provides support in various areas, including halal science and technological work carried out within state universities,” Dahlan adds.

A gigantic jump in halal exports

As a result of government support for the industry and private sector efforts, Thai halal food exports have seen a 24-fold increase over the past two decades, with the lion’s share going to the 57 member countries of the Organization of Islamic Cooperation (OIC). – says Dahlan.

According to data from the Ministry of Commerce, Thailand’s halal F&B exports to OIC countries amounted to $6.2 million in 2023, up 5.3% year-on-year. Commodities exported included rice (35%), sugar (22%), canned and processed seafood (10%), cassava products (4.3%), wheat and ready-to-eat products (3.4%), and fresh and frozen chicken (3.4%).

Export volume is expected to increase by 3% in 2024 and reach $6.4 million.

Indonesia, Malaysia, Iraq, the United Arab Emirates and Mozambique accounted for almost 76% of Thailand’s total halal food exports to OIC countries in 2023.

However, the country plans to diversify halal food export markets. In addition to countries, the OIC is looking at non-Muslim majority countries with large Muslim populations, such as India, China, Russia, the US and the UK, as well as countries that receive large numbers of Muslim tourists, such as Singapore, Japan, and Hong Kong.

Halal compliance

A distinctive feature of Thailand’s involvement in the halal industry is compliance with international standards. This commitment led to Thailand’s admission as a member of the Standardization and Metrology Institute for Islamic Countries (SMIIC) of the OIC in 2017, making it the first non-Muslim country accredited as an OIC/SMIIC participant.

Additionally, CICOT – the government organization responsible for issuing the Thai Halal Certification Mark – requires companies that have never been halal certified to undergo training from the Halal Standards Institute of Thailand before applying for certification.

Representing a step forward for the country’s halal food industry, CICOT received accreditation from the Saudi Food and Drug Authority in 2023 and the Emirates International Accreditation Center in the United Arab Emirates in 2024, enabling Thailand to export various halal goods to both Middle Eastern countries.

“The halal certification of products in Thailand is in accordance with the Administration of Islamic Organizations Act BE 2540 (1997), which is governed by CICOT in cooperation with the Islamic Committee of Provinces (ICOP) Offices,” says Dahlan.

“As a result, there are 41 halal certification bodies in Thailand: one CICOT office along with 40 ICOP offices, with all parties agreeing to use a common halal certification mark. About 160,000 products are halal certified, and almost 7,000 plants and factories use the common mark.

The activities of the Halal Science Center have also led to greater confidence in the safety of halal food products from Thailand. The center plays a major role in strengthening the industry through science and technology and helps other countries analyze food samples.

Since its establishment in 2003, it has developed various innovations, such as the HAL-Q quality management system enabling the integration of halal standards with food safety, and H-numbers – the world’s first database of chemicals used in the food industry.

With the rapid development of technology and its impact on the development of commercial enterprises, the Halal Science Center intends to apply blockchain, artificial intelligence and Shariah-compliant cloud computing in its operations in order to build greater trust in the halal economy, says Dahlan.

As Thailand continues to implement its strategy, including its plan to transform the Southern Economic Corridor into a halal food hub, the country is poised to become a major force in the global halal market.