Thailand's halal exports reach US$8 billion, unlocking new business potential

Krungthep Turakij held a seminar titled Thailand’s New Prospect to mark the 55th anniversary of Nation Group on November 12, where the economic direction of Thailand was discussed. A major focus was the halal industry, identified as a key driver of Thailand's economic future.

Supakit Boonsiri, Director General of the Office of Industrial Economics (OIE), in his special talk "Thailand’s New Prospect: The Global Halal Economy," highlighted that the OIE’s 2023 study shows halal is no longer limited to food but encompasses a wide range of products and services such as pharmaceuticals, cosmetics, chemicals, clothing, medical tools, herbal products, supplements, animal feed, packaging, as well as tourism and transportation.

In 2023, the global halal market was valued at US$1.36 trillion, with halal products totaling US$546 billion, led by halal food at 43%, chemicals at 26%, and medicine at approximately 11%. Services related to halal are worth US$815 billion, with major sectors being tourism, transport, and business services, all contributing 20-22% of the service market.

Despite the large global market, Thai halal exports currently stand at US$8.85 billion, which represents just 1.6% of the global halal market (US$546 billion). This indicates substantial room for growth.

“Currently, Thailand’s main exports are food, accounting for 67% of halal export value (around US$6 billion), followed by chemicals at 20% (US$1.75 billion),” said Supakit.

China leads global halal exports

The top five global halal export countries are China, the US, India, Germany, and Brazil, with the largest importers and consumers being the Organization of Islamic Cooperation (OIC) countries, led by Turkey at 18% (about US$45 billion), Saudi Arabia, Indonesia, the United Arab Emirates (UAE), and Malaysia—key markets with high potential for Thai exporters.

Supakit added that while the global halal market grows at an average rate of 6-8% annually, Thai halal exports have only grown by 4.2%, below their true potential. Therefore, a strategic push is needed to achieve growth of at least 10%, positioning Thailand as "the halal hub of ASEAN."

To support this, the OIE has outlined a five-year development plan for the halal industry (2024-2028) to elevate international halal standards, improve production and logistics infrastructure, and establish a “Halal Industrial Park” to attract future investment.

“Halal is the new economic gateway for Thailand, leveraging the country's strengths in food, tourism, and healthcare. The OIE will push Thai businesses to become global leaders in the halal industry,” he concluded.

Pinpointing the "Halal Economy" as a new engine driving GDP growth

Pattarapon Limpakdee, Deputy Director General of OIE, stated during the panel discussion “Halal Economy: A New Economic Treasure” that halal is a "new engine" with the potential to drive industrial GDP growth, noting that Thailand’s halal exports currently represent just 1.6% of the global market, highlighting a significant "opportunity gap" for expansion. 

The OIE has developed a five-year plan (2024-2028) to systematically drive Thailand's halal economy through three main measures:

• Demand: Promote trade and raise global awareness of Thai halal products and services.
   
• Supply: Elevate product quality and production processes to international standards, focusing on low-carbon and renewable energy production trends, which will be crucial for future exports.
   
• Ecosystem: Strengthen the supply chain from upstream to downstream and develop supporting mechanisms in line with the Quick-Big-Win policy across short, medium, and long-term horizons.

OSMEP proposes "Halal One Stop Service" to boost SME development

Dr Panita Shinawatra, Acting Director General of the Office of Small and Medium Enterprises Promotion (OSMEP), emphasized the agency’s focus on developing SMEs by addressing their weaknesses in management, production processes, marketing, and product quality. 

One key challenge is the lack of access to essential information, particularly in the halal sector, where many businesses view certification and halal approval as cumbersome, creating barriers to market expansion. 

“I want all parties to push forward the concept of ‘Halal One Stop Service’ to elevate the standards of Thai products, both halal and non-halal, to international recognition, while also building consumer trust worldwide,” she said.

Driving SME halal growth with three key initiatives

Phichit Mitrawong, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank), stated that the bank is actively supporting halal SME operators by enhancing their potential through the “DX Platform,” offering comprehensive financial and development services. 

The bank has outlined three key initiatives for halal business growth:

• Capital injection: Offering suitable credit and funding options for halal SMEs, making it easier to access capital for sustainable business expansion.
   
• Entrepreneur development: Preparing SMEs for accessing funding through training, knowledge sharing, and developing tools that help entrepreneurs manage their businesses more effectively.
   
• Investment collaboration: Reducing financial burdens on operators by encouraging investment partnerships, offering opportunities for business expansion without solely relying on loans.

"We should establish the 'Halal Economy Integration Centre' to serve as a central hub for policy and coordination under a single command," Phichit said.

Halal economy: A global driving force

Narongdej Sukchan, Deputy Secretary-General of the Central Islamic Council of Thailand, explained that Thailand’s halal certification standards are not just for Muslims in the country but represent Thailand's halal certification as a whole, under the name “The Central Islamic Council of Thailand.” 

With a long-standing reputation dating back to 1949, this certification is globally recognized, allowing Thai halal products to be sold worldwide, earning the trust of markets in both Muslim-majority countries like Arabia, Indonesia, Malaysia, and non-Muslim countries alike.

Changing mindsets to unlock economic opportunities

Dr Thaweelap Rittapirom, Managing Director of the Islamic Bank of Thailand, emphasized that Thailand must shift the mindset of entrepreneurs to understand and adapt to halal standards in order to unlock more economic opportunities.

He suggested positioning Thailand as a "Muslim-friendly country" to capitalize on the massive potential of the halal economy. With 1 in 4 people globally being Muslim, the halal market, particularly in sectors like food, tourism, and travel, offers substantial growth opportunities. 

Most notably, the young Muslim population presents a significant future purchasing power, providing vast growth potential.