Emerging Halal Trends: How ASEAN Can Capitalise on the Next Wave of Growth

In a world increasingly shaped by values-driven consumption, regulatory transformation, and economic realignment, the Halal economy stands at the intersection of ethics, opportunity, and scale. It is no longer a niche market exclusive to Muslim-majority nations, nor is it limited to dietary compliance. Halal has evolved into a sophisticated global framework that underpins trade, branding, innovation, and strategic market positioning.

This evolution carries significant implications for ASEAN. With a combined population of 620 million — around 42% of whom are Muslims — ASEAN has both the market size and strategic location to emerge as a global Halal hub. Yet the region’s potential remains underdeveloped, constrained by fragmented standards, limited SME awareness, and structural barriers to cross-border certification and trade.

At the Vietnam–Singapore Halal Trade Seminar (24 May 2025), co-organised by Vietnam Trade Office, Vietnam Halal Certification Authority, Maybank Singapore and Dawn Horizon Pte Ltd, I shared insights on how ASEAN, particularly Singapore and Vietnam, can navigate the shifting Halal landscape. This article synthesises those ideas, offering a roadmap for businesses, regulators, and trade stakeholders to engage with this next wave of Halal growth.

Reframing Halal: From Religious Obligation to Economic Lever

At its core, ‘Halal’ refers to what is lawful or permitted under Islamic law. But the contemporary Halal economy has transcended its religious roots to become a universal value proposition — centred on ethical production, health, safety, and transparency.

This redefinition of Halal is reflected in the sectors it now encompasses:

• Halal food & beverages

• Halal pharmaceuticals & supplements

• Modest fashion & cosmetics

• Islamic finance & insurance

• Muslim-friendly travel & hospitality

• Halal-certified logistics and digital platforms

Driven by a Muslim consumer base projected to reach 2.2 billion by 2030, the Halal market is estimated to exceed USD 10 trillion in value by the end of the decade. But beyond its size, the Halal economy’s true significance lies in its cross-market relevance: Halal is increasingly appealing to non-Muslim consumers who prioritise sustainability, wellness, and ethical sourcing.

Strategic Shifts Redefining the Halal Landscape

To unlock the Halal economy, ASEAN must first understand the three macro-level shifts that are fundamentally reshaping the market:

1. The Rise of Ethical and Conscious Consumerism

Modern consumers, particularly millennials and Gen Z, seek alignment between their values and their purchases. Halal, with its embedded focus on hygiene, cruelty-free practices, and social responsibility, offers precisely this alignment. In this context, Halal overlaps with global movements such as clean-label eating, organic consumption, veganism, and environmental sustainability.

2. Shifting Trade and Supply Chain Dynamics

Global trade flows are undergoing structural realignment. US-imposed tariffs, the war in Ukraine, and China’s recalibration of its manufacturing priorities have prompted multinational companies to diversify their supply chains. This “China+1” strategy has made ASEAN an attractive alternative. If properly positioned, Halal-certified manufacturing in ASEAN could fill the gap for markets in the Gulf, Europe, and beyond.

3. Food Security as a Strategic Imperative

In the post-pandemic world, food security has become a top policy concern. For many Muslim-majority nations, Halal certification is increasingly seen as integral to national food security frameworks. It signals trust, traceability, and compliance with health protocols. ASEAN must recognise Halal not as a religious niche, but as a strategic trade enabler with implications for safety, standards, and sovereign resilience.

The Five Trends Businesses Must Watch

These shifts have birthed five key trends that are now shaping the next decade of Halal:

1. Halal Meets Technology

Digital transformation is accelerating across the Halal supply chain. Certification authorities are moving toward e-certification, blockchain-based traceability, and AI-powered compliance management. These innovations reduce cost, improve scalability, and open the market to SMEs that were previously deterred by bureaucratic complexity.

At Dawn Horizon, we developed the Halal Personal Advisor —an AI-powered platform that simplifies the compliance journey for companies. It enables document management, material tracking, regulatory advisory, and team collaboration—all through a secure digital interface.

2. Health, Wellness, and the Toyyib Principle

There is growing consumer demand for Halal products that are also “Toyyib”—meaning pure, wholesome, and ethical. This includes Halal-certified vegan protein, functional beverages, natural supplements, and organic cosmetics. Businesses that combine Halal compliance with wellness and sustainability are more likely to command consumer trust.

3. Cross-Border Halal E-commerce

E-commerce has democratised Halal trade. Beauty brands from Indonesia, supplement makers in Thailand, and artisanal food products from Vietnam are finding buyers in the Middle East, North America, and Europe—thanks to platforms like TikTok Shop, Shopee, and Amazon.

But without proper Halal recognition, market access becomes constrained. Companies must understand not only how to sell online, but how to meet destination-specific certification requirements.

4. Halal Tourism Rebound

The global Muslim travel market is expected to reach USD 411 billion by 2032. Singapore, Malaysia, and Thailand have long led the way in Muslim-friendly tourism, but Vietnam is an emerging destination with significant potential. With growing infrastructure, cultural diversity, and Cham Muslim communities, Vietnam can build an inclusive tourism offering—if the hospitality sector is trained in Halal requirements.

5. Regulatory Tightening

Perhaps the most significant development is the mandatory Halal certification law in Indonesia, effective October 2024. It requires all food, beverages, and consumer goods sold in the country to be Halal-certified—either locally or via approved foreign certifiers. This single regulation could impact thousands of ASEAN exporters and underscores the need for cross-border regulatory readiness.

ASEAN's Halal Trade Gap: Challenges and Constraints

While the region is well-placed geographically and demographically, there are systemic barriers that must be addressed:

• Limited Halal capability among SMEs, especially in non-Muslim-majority countries like Vietnam, the Philippines, and Cambodia.

• Fragmented Halal standards across ASEAN, leading to duplicative audits and higher compliance costs.

• Insufficient public-private coordination, with Halal development often siloed between ministries, agencies, and industry.

• High administrative burdens for certification, particularly for businesses managing multiple product lines or export destinations.

Unless these constraints are resolved, ASEAN risks losing its Halal leadership position to more coordinated players in the Middle East, South Korea, and even Europe.

A Strategic Partnership: Singapore & Vietnam as Halal Catalysts

At the heart of ASEAN’s Halal potential lies a strategic collaboration between Singapore and Vietnam. These two economies are highly complementary: Singapore offers regulatory strength, innovation, and export connectivity, while Vietnam brings cost-efficient production, abundant resources, and an agile SME base.

Key Collaboration Pillars:

By aligning on training, certification, and cross-promotion, both nations can lead ASEAN in Halal production, innovation, and trade.

Dawn Horizon: Empowering the Halal Transition

To support this vision, we at Dawn Horizon offer a suite of Halal-enabling tools:

• Halal Personal Advisor: An AI-powered compliance platform to streamline the certification journey.

• Halal Industry Essentials Course: An on-demand training program covering fundamentals, certification, product innovation, and export strategies.

• Halal Business Mission to Indonesia: A market immersion trip offering strategic insights, networking, and B2B connections.

• Halal Made Simple Programme: Customised advisory, training, and trade support for companies in Vietnam and Singapore (In partnership with Vietnam Go!)

• Halal Market Mastery Newsletter: Weekly insights and global trends for industry leaders.

These tools are designed to make Halal accessible, efficient, and scalable—especially for SMEs navigating new markets.

Conclusion: From Trend to Transformation

The Halal economy is not just growing—it is maturing. What was once a niche requirement is now a mainstream expectation in global trade. ASEAN—home to 240 million Muslims, rich in diversity, and central to global supply chains—has the potential to lead.

But leadership requires readiness. It requires capability building, regulatory coherence, and cross-border partnerships. It demands that we embrace Halal not just as a certification process, but as a strategic economic lever.

Singapore and Vietnam, through coordinated action, can serve as models for the region. And with the right tools and vision, ASEAN can claim its place as the trusted Halal hub of the future.

Dewi Suratty is the Founder and CEO of Dawn Horizon Pte Ltd, a Singapore-based consultancy advancing ethical prosperity and Halal market transformation across Asia. She is a frequent advisor to governments, trade agencies, and private sector leaders on Halal certification, compliance, and cross-border strategy.