Rising star in global market: Azerbaijan’s halal food industry takes shape

The halal food sector is undeniably one of the fastest-growing segments of the global food market, driven by the increasing demand from Muslim consumers worldwide. Despite being in its early stages, Azerbaijan's halal food industry is showing a promising trajectory, positioning the country to emerge as a major player in this market. The recent "Azerbaijan Halal Business and Tourism Forum" (AZHAB Forum) held in Baku highlights Azerbaijan's ambitious growth. With support from the Ministry of Economy, the Small and Medium Business Development Agency (KOBIA), and the State Tourism Agency, the forum successfully brought together officials and business leaders from 20 countries to explore lucrative opportunities in halal business and tourism.

Despite the challenges of implementing halal food standards, interest in this sector is growing every year. The increasing interest is driven by the lucrative opportunities and impressive growth potential of the halal products market. In 2009, the global halal food market was valued at $500 billion. According to the State of the Global Islamic Economy Report, it is projected to reach $2.4 trillion by the end of 2024, representing an almost fivefold increase. This surge means that halal products will make up over a fifth of the global food market, creating a vast and rapidly expanding sector that numerous food producers are eager to enter.

The Role of Tourism in Accelerating Halal Industry Growth: A Compelling Perspective

The halal food sector’s growth in Azerbaijan is closely linked to the country's tourism prospects, especially from Muslim-majority countries. Azerbaijan’s position as a Muslim-majority nation and its rich Islamic heritage make it an attractive destination for halal-conscious travelers from regions like the Middle East, North Africa, and Southeast Asia. The ongoing efforts to promote halal tourism alongside the halal food sector will serve to enhance the country’s appeal in this regard. Notably the current tourist season has proven exceptionally favourable for expanding Azerbaijan's tourism ties with various countries, including afore-mentioned Muslim States. According to the State Statistics Committee, in the first six months of 2024, the number of visitors from Persian Gulf countries reached 258.8 thousand, marking a 39.6% increase in comparison to the previous year. In particular, the AZHAB Forum spotlights the potential for halal tourism, encouraging collaboration between local businesses and international stakeholders to build a solid infrastructure that can cater to the needs of halal-conscious tourists. Services such as halal-certified hotels, restaurants, and entertainment options are essential components of this strategy, as Azerbaijan seeks to attract a larger number of Muslim travelers. Azerbaijan is actively pursuing the introduction of a "Halal Hotel" certification for tourist facilities, following the establishment of a new state standard for halal tourism services. This bold initiative aims to draw significant tourist traffic from Arab and Central Asian countries, as well as Iran and Turkey, establishing a robust client base for domestic halal hotels. As a result, a substantial rise in tourist numbers can be anticipated in the upcoming calendar year.

Another crucial milestone towards Azerbaijan’s development of the halal food sector is the establishment of a robust halal certification system. The "Halal" certificate is a vital tool designed to instill unwavering consumer confidence in halal products and services, guaranteeing strict adherence to international standards. This proactive step is poised to propel substantial growth in both the domestic and export markets.

“Halal product certification in Azerbaijan will be categorized into four areas: the slaughter of cattle, poultry, milk and dairy products, and processed goods,” announced Goshgar Tahmazli, head of the Azerbaijan Halal Certification Organization (APBA), during the forum. Efforts are actively being made to streamline the application process, introduce innovative communication solutions for public catering entities, and set up certification and arbitration committees to facilitate the halal certification process.

The Azerbaijan Standardization Institute’s "AZSTANDART Halal" Certification Body has successfully obtained accreditation from Türkiye's Halal Accreditation Body (HAK), empowering it to issue halal certifications that fully align with international accreditation requirements. The primary objective of this certification is to unequivocally ensure that products, services, and management systems strictly conform to the high halal standards that consumers demand. Furthermore, in 2022, Azerbaijan proudly secured membership in the Organization of Standardization and Metrology of Islamic Countries (SMIIC), further cementing the country's formidable position in the global halal market.

Azerbaijan's entry into the halal food market illustrates the country's progressive approach to economic diversification. With a robust certification framework and a thriving tourism sector, the country is strategically positioning itself to access the lucrative global halal market. Furthermore, by aligning the halal food sector with the country's broader tourism objectives, Azerbaijan can attract a new wave of Muslim tourists, thereby contributing to the growth of its non-oil economy.