Potencies and Opportunities of Halal Market in Global Industry: An Empirical Analysis of Malaysia and Indonesia.

Abstract

The halal industry has experienced substantial growth in recent years, with an estimated value of USD 2.3 trillion. This rapid expansion has positioned the halal market as a promising sector with significant potential in the global economy. Interestingly, the market has transcended its traditional Muslim consumer base, attracting non-Muslims as well. This paper aims to provide an in-depth analysis of the global halal industry, focusing on the potencies and opportunities it presents within the worldwide market. Specifically, it seeks to identify the factors that drive the demand for halal products in Malaysia and Indonesia and examine the potential for these countries to become leaders in meeting global halal requirements. The research methodology employed in this study relies on secondary data from reputable journals and proceedings. The findings indicate that the GDP of Malaysia and Indonesia exerts a positive and significant influence on the halal market. Both countries exhibit similar potentials and opportunities in the halal sector, although their rates of expansion may vary based on market-specific factors and duration of market presence. The insights derived from this research aim to inform future researchers, scholars, practitioners, and policymakers, aiding them in making informed decisions regarding the strategic development of the halal market. By understanding the realities and opportunities of the global halal industry, stakeholders can navigate a path towards sustainable growth and capitalize on the emerging prospects within the halal market.