Five Muslim Consumer Trends to Watch in Asia

Governments in Asia are playing an influential role in shaping halal economic activity. Indonesia is a regional leader. It is scaling up mandatory halal certification across various segments, such as foods, cosmetics, and pharmaceuticals. It believes a dynamic halal ecosystem could add USD 5.1 billion annually to GDP from domestic consumers and exports. Malaysia wants to utilize its geographical location to become a consumer travel hub for Asian Muslims who travel each year to Saudi Arabia for Umrah pilgrimages.

State institutions are introducing new services to support the diversification of halal living. Indonesia’s postal service launched Pospay Gold, a gold trading and investment app that conforms to Sharia finance principles.

Digital and lifestyle services platforms are adapting to meet the changing online shopping preferences of Muslim consumers. Lazada Malaysia launched a halal-certified online store called Laz Halal. Users can select local and global products verified by Malaysia’s Department of Islamic Development. Also in Malaysia, the food services app foodpanda introduced a home delivery halal menu with all dishes and snacks fully certified.

Imported from China, social commerce is a thriving hybrid concept in Southeast Asia. Bespoke iterations combining retail and social media are evolving. Evermos (an abbreviation of “Everyday Need for Every Muslim”) is an Indonesian app that connects resellers of local fashions, foods, personal care, and homeware items with a youthful customer base. It raised USD 39 million in funding to expand its reach among the world’s largest Muslim population.

Halal beauty, grooming, and wellness is an increasingly competitive arena. Certified start-ups and established brands are building market share in key markets, with Indonesia leading the way. Youth-focused halal beauty brand Mad for Makeup created an online social club for its Gen Z fans. Members are incentivized to review products and provide feedback to help the brand develop new halal-certified clean cosmetics for different Asian skin types.

Creative collaborations with complementary brands are developing. Garuda Indonesia partnered with cosmetics brand Wardah and male grooming brand Kahf to distribute skincare gift sets to Hajj and Umrah passengers traveling to Saudi Arabia. Containing no alcohol or artificial fragrances, the halal-certified sunscreen, cleanser, and moisturizer are specially formulated from natural ingredients to protect the skin in extreme heat.

Travel is recovering across Asia, and Muslim travel consumers are big spenders on retail, dining, hotels, and experiences. In 2022, there were 110 million Muslim visitors worldwide, according to the 2023 Global Muslim Travel Index (GWTI). This figure is forecast to reach 140 million in 2023, 160 million in 2025, and 230 million in 2028. Asia is a global hub of Muslim leisure and business travel, with 31 percent of arrivals to the region in 2022 identifying as Muslim.

The GWTI highlights the ever-more influential role of Muslim women travelers. “When female Muslims travel with family, they research where to go, where to stay, activities to enjoy, and places to eat,” says Soumaya T. Hamdi, Managing Director at Halal Travel Guide. “More Muslim women are also willing to travel independently, either solo or on a group tour.”

The concept of halal is often associated with food. Halal monitoring of food products and preparation and handling methods is rigorous in Indonesia, Malaysia, Singapore, Brunei, and parts of Thailand and the Philippines. Restaurants in Japan, South Korea, and Hong Kong also promote their halal credentials to attract Muslim business travelers and tourists.

Halal cuisine is enjoying an era of creativity and innovation and its appeal is crossing cultures. Fine-dining halal restaurants in the region report a mix of Muslim and non-Muslim guests. In 2024, the HalalTrip Gastronomy Awards will be launched in partnership with the Singapore Halal Culinary Federation. The goal is to “be as authentic as the Michelin star standard for culinary excellence in the halal dining ecosystem.” Initially centered on Singapore, the awards will expand to promote exemplary halal dining across Southeast Asia.