The Impact of the Pandemic on the Halal Industry

What is the Islamic Perspective of Trials and Tribulations?

In life, we are not exempt from facing tests and experiencing trials and tribulations. As believers, we are informed that we will be faced with difficulty. In the Holy Qur'an, Allah says:

"And We will surely test you with something of fear and hunger and a loss of wealth and lives and fruits, but give good tidings to the patient; Who, when disaster strikes them, say, "Indeed we belong to Allah, and indeed to Him we will return." Those are the ones upon whom are blessings from their Lord and mercy. And it is those who are the [rightly] guided." [2:155-157]

"Do you think that you will enter Paradise without undergoing such trials as were experienced by the believers before you? They met with adversity and affliction and were so shaken by trials that the Prophet of the time and his followers cried out, when will Allah's help come? (Then only they were comforted with the good tidings:) "Yes, Allah's help is near!" [2:214]

These verses from the Holy Qur'an indicate that trials and afflictions on believers are from Allah. Allah does not intend to punish us through tests; instead, Allah offers us an opportunity to earn His Mercy and draw closer to Him.

The Impact of the Pandemic on the Halal Food Industry

Amid lockdown restrictions, the halal food industry was among the sectors that experienced a significant boost.  According to a recent report by the Savola Group, a Saudi Arabian company that deals in retail and frozen food sales, it was recorded that the halal food sector has seen a net profit increase of about 271.69% between April and June 2021. Likewise, Abdullah Al Othaim Market's profit increased by nearly 113.26% as the need for halal food and groceries increased. The United Kingdom Halal Monitoring Committee (HMC), a halal certifying body in the UK, reported a substantial rise in the demand for halal meat due to the coronavirus outbreak.

However, foodservice; catering companies, and airlines were significantly hit when international and local travel ceased. Furthermore, the risk of contracting COVID-19 has made people more conscious of what they consume. Subsequently, this has led to an increased awareness of consuming hygienic and healthy halal food. Consumers are now trying to avoid purchasing non-halal food, groceries, alcoholic drinks, and food items that have gone through the correct quality control methods. Instead, consumer behavior and trends are shifting towards more halal-food as it has proven to be more hygienic. As a result, the increased sanitary concerns have made the halal food industry gain more popularity, especially during a global epidemic.

The Impact of the Pandemic on the Halal Tourism and Hospitality Industry

Islam is a religion that encourages travel and tourism. Muslims are permitted to travel to different parts of the world to seek knowledge, education, gain a better life, and perform Umrah or Hajj. However, traveling - for a religious duty or leisure - is subject to Islamic Law guidelines. In the event of potential danger, Muslims are required to abstain from travel.

Additionally, the Holy Prophet (SAW) recognized and preached the significance of travel bans and quarantine in areas that are plagued with disease. The reason behind his sage advice is to prevent the further spread of disease.

The Prophet Muhammad said, "If you hear of an outbreak of plague in a land, do not enter it; and if the plague breaks out in a place while you are in it, do not leave that place." (Sahih Al-Bukhari)

Due to the pandemic, inbound and outbound flights were suspended in all countries. Halal tourism countries and destinations such as Saudi Arabia, Turkey, Egypt, Malaysia, and so forth were among those that stopped flight movements. Even more, entry into Islamic religious destinations and places in Saudi Arabia, including Makkah and Madinah, was strictly prohibited. Moreover, umrah and Hajj rites were put on hold until further notice.

Unfortunately, the suspension of inbound and outbound flights led to substantial direct and indirect losses to Halal tourism destinations. Such losses have had a significant adverse effect on the Halal travel & hospitality companies and the tourism industry. Likewise, the cancellation of Hajj and Umrah generated substantial negative economic and financial implications for the Halal hospitality industry.

The Impact of the Pandemic on the Halal Cosmetic Industry

Since the pandemic, the global halal cosmetic, modest fashion, and fragrance markets have suffered financial losses. Because of lockdown, consumers worldwide have been restricted to shopping for essential goods. Subsequently, consumer spending power has reportedly dropped by 2.5% to US$64 billion.

Additionally, due to stay-at-home restrictions, social distancing, and wearing masks, the demand for beauty and cosmetic products is expected to reduce. However, this has created opportunities for above-the-mask products such as face creams, hand creams, eye-care products, and hand sanitizers.

Conclusion

The coronavirus pandemic has affected the halal industry in both positive and negative ways. The halal food and halal pharmaceutical sector were among those positively affected by the pandemic. Conversely, the halal tourism and halal cosmetic industry were affected negatively due to lockdown and travel restrictions and decreased income and spending power. We pray that He showers us with His mercy and infinite blessings during these unprecedented times.