Fast-growing Thai halal industry poised for big leap in 2025
Thailand has set an ambitious goal of becoming one of the world's top five halal exporters, as it shows significant growth driven by the burgeoning Muslim population, which presents substantial opportunities.
This lucrative sector, worth more than £1.6 trillion, includes a diverse range of products and services, with food accounting for the majority.
Despite its potential, Thailand's halal exports currently rank 11th globally.
Trade barriers, the credibility of Thai halal certification, and high transportation costs have slowed progress.
However, recent developments bode well for the Thai halal industry. The establishment of the Halal Department and the National Halal Industry Committee, combined with the restoration of diplomatic relations with Saudi Arabia, has strengthened Thailand's position as a regional halal hub.
Supawan Teerarat, director of the National Food Institute (NFI), said that the halal market included a wide range of products such as textiles, wellness, health, spas, and tourism, with food accounting for 80-85% of the market value.
"The products that have received halal standards are likely to continue to grow due to the expansion of the Muslim population around the world, especially in Southeast Asia, including Indonesia, Malaysia, Brunei, as well as the Middle East and Africa, where it is estimated that by 2050 there will be about 2.8 billion Muslim people," she said, adding that those countries with a majority Muslim population have a low level of food security, making them more dependent on food imports.
In addition, consumers prefer halal-certified products. Non-Muslims are becoming more aware of the strictness of halal certification due to quality concerns and a desire for safety. As a result, many countries have focused on and developed policies to help domestic industries achieve halal certification in a concrete way, including Thailand, to expand the export market.
Thailand's export value for halal products in 2023 was 222.247 billion baht. It is ranked 11th in the world and is expected to grow at 4% per year.
Paisan Promyong, president of Samut Prakan Province's Islam Council, highlighted some of the challenges. He said that Thailand had received government support to promote halal products over the last 10 years, but it was yet to meet the target due to numerous weaknesses such as trade barriers, the credibility of Thai halal certification, and the quality of Thai halal certification.
"People think that Thailand is a Buddhist country, and the high cost of transport makes it difficult to compete on price," he said.
Despite the challenges, the Thai halal industry is poised for growth. Thailand has the potential to become a global halal market leader thanks to strong government support, an increasing number of halal-certified businesses, and rising global demand.
"2025 will be an excellent opportunity for halal entrepreneurs in Thailand," he said.
He emphasised the importance of religious organisations and institutions that promote higher education knowledge in producing personnel for the Halal Business System Management curriculum.
Meanwhile, the financial institution partner creates special loan programmes for halal entrepreneurs, as well as promotes and supports organisations that help entrepreneurs reach the export market in a concrete way.
Furthermore, the government's policies have contributed to the perception that Thailand has restored diplomatic relations with Saudi Arabia in order to expand trade with the Arab world, which began in 2022.
In 2023, the Halal Department was established to promote Thailand as the ASEAN region's halal centre, and the prime minister chaired the National Halal Industry Committee. This makes it easier to communicate and implement policies.
In 2024, the Thai Halal Industry Centre was established as a responsible agency that connects the cooperation framework of 12 halal-related government agencies into a one-stop service to facilitate and speed up business operations.
"The supply chain, which is now an integral part of Thailand's halal industry for export, is the key to the company's success. It is the best opportunity for Thai halal in all dimensions, and I believe it will quickly rise to the top five exporters. The question is, how long will Thailand work together to become a global halal centre?" Paisan stated.
