The Halal Economy Beyond Food: Unlocking Global Potential

Baba Yunus Muhammad

The global halal economy, long associated primarily with food and beverages, has evolved into a multi-trillion-dollar ecosystem spanning lifestyle, retail, travel, tourism, and financial services. According to the State of the Global Islamic Economy Report 2024, the halal economy is projected to reach $3.7 trillion by 2025, with lifestyle and retail sectors, travel and tourism, and halal finance contributing substantially to this growth. This expansion is driven by a combination of demographic trends, rising consumer consciousness, and increasing global demand for products and services aligned with ethical, cultural, and religious principles.

Halal lifestyle and retail have emerged as some of the most dynamic components of this broader economy. The modest fashion segment alone is now valued at over $365 billion and is projected to grow at a compound annual growth rate (CAGR) of approximately 5–6% over the next five years. Countries such as Indonesia, the UAE, and Turkey are leading this growth, with local designers gaining international recognition for blending cultural authenticity with contemporary aesthetics. Platforms such as Zalora Malaysia’s Muslimah Collection and Haute Hijab in the United States illustrate the potential for modest fashion to reach global markets while maintaining cultural integrity. READ MORE>>