This presentation was given by Shahlan Hairalah, CEO of Sahl International Pte Ltd, at the Vita Foods Conference in Hong Kong, 2-3 September 2014

1. Halal Nautraceuticals - Lessons from the Food Industry

2. Overview
•2 Take-aways
–The Demand
–The Minefields
•Consumers
•Regulatory/Certification

3. The Market
•Drivers to nutraceuticals industry
–Changes in lifestyles
–Mal-nutrition
–Meeting basic nutrition needs
–Diseases
–Increased health awareness
–A case in point: Obesity

4. The Market
•Worldwide obesity has nearly doubled since 1980
•In 2008, more than 1.4 billion adults, 20 and older, were overweight. Of these over 200 million men and nearly 300 million women were obese
•35% of adults aged 20 and over were overweight in 2008, and 11% were obese
•65% of the world's population live in countries where overweight and obesity kills more people than underweight
•More than 40 million children under the age of 5 were overweight or obese in 2012.
•Obesity is preventable
Source: WHO Factsheet No. 311

5. The Market
•Due to
–an increased intake of energy-dense foods that are high in fat; and
–an increase in physical inactivity due to the increasingly sedentary nature of many forms of work, changing modes of transportation, and increasing urbanization
Source: WHO Factsheet No. 311
Change of Lifestyle

6. The Market
•Growing obesity rates
•The problem was most acute in the Middle East and North Africa,
•Bahrain, Saudi Arabia, Oman and Kuwait saw big increases
Source: Reuters US - 28 May 2014; The Lancet

7. The Market
Source: The Straits Times; June 2014
ARABIAN BUSINESS.COM
GCC states named among world's
most obese
By Daniel Shane
Tuesday, 9 July 2013 12:05 PM
Populations in the Gulf have been rated as among the world’s fattest, according to a
new United Nations report, with almost half of adults in Kuwait classed as obese.
The State of Food and Agriculture study said that rising obesity rates could cost the
global economy $47trn over the next two decades, due to loss of labour productivity
and fees associated with treating lifestyle diseases such as diabetes and heart
disease.
Kuwait led the way in highest proportion of obese adults in the GCC, with 42.8
percent falling into this bracket in 2008, followed by Saudi Arabia at 35.2 percent. In
the UAE, 33.7 percent of the population were identified as having a serious weight
problem, while in Qatar it was 33.1 percent and Bahrain 32.6 percent.
In terms of the Gulf, obesity was least prevalent in Oman, although at more than a
fifth (22.1 percent), it was broadly in line with developed European countries.
The report said that the prevalence of overweight and obese adults was rising in
nearly all regions, with the global average increasing from 24 percent in 1980 to 34
percent to 2008.
The countries with the world’s most endemic obesity problem were found in Oceania,
with almost two-thirds (64.1 percent) of Cook Islanders falling into this category.
“Overweight and obesity... impose economic costs on society directly through
increased health care spending and indirectly through reduced economic
productivity. Most of the losses occur in high income countries,” the report read.
The UN study blamed rising obesity rates on factors including lower prices of food
and increased availability of highly-processed food products, as well as genetic pre-disposition.
“The most immediate cause of overweight and obesity is overconsumption of energy
relative to physical requirements, yet nutritionists have long recognised that this does
not explain why some people consume more than they need,” the report added.
The GCC countries have some of the highest rates of lifestyle diseases in the world,
with the International Diabetes Foundation last year forecasting that about 20 percent
of the population is afflicted by the disease.
Overall spending on healthcare in the Gulf, according to figures from Deloitte, is just
$1,200 per capita, compared to $5,000 in developed countries.
ARABIAN BUSINESS.COM
GCC states named among world's
most obese
By Daniel Shane
Tuesday, 9 July 2013 12:05 PM
Populations in the Gulf have been rated as among the world’s fattest, according to a
new United Nations report, with almost half of adults in Kuwait classed as obese.
The State of Food and Agriculture study said that rising obesity rates could cost the
global economy $47trn over the next two decades, due to loss of labour productivity
and fees associated with treating lifestyle diseases such as diabetes and heart
disease.
Kuwait led the way in highest proportion of obese adults in the GCC, with 42.8
percent falling into this bracket in 2008, followed by Saudi Arabia at 35.2 percent. In
the UAE, 33.7 percent of the population were identified as having a serious weight
problem, while in Qatar it was 33.1 percent and Bahrain 32.6 percent.
In terms of the Gulf, obesity was least prevalent in Oman, although at more than a
fifth (22.1 percent), it was broadly in line with developed European countries.
The report said that the prevalence of overweight and obese adults was rising in
nearly all regions, with the global average increasing from 24 percent in 1980 to 34
percent to 2008.
The countries with the world’s most endemic obesity problem were found in Oceania,
with almost two-thirds (64.1 percent) of Cook Islanders falling into this category.
“Overweight and obesity... impose economic costs on society directly through

8. The Market
•Ready Markets mentioned:
–Kuwait
–Qatar
–Malaysia
–Bahrain
–Oman
–Saudi Arabia
These form parts of the Halal Market

9. The market
•Modern lifestyle challenges leads to the rise in the importance of :
–Balanced Diet (better nutrition, Support nutrition, super foods)
–Work life balance (supports familial, mental and physical well- being
–Stress management
–Exercise
–Lifestyle diseases
•Diabetic treatment and drugs
•Coronary heart disease treatments and drugs
•Hypertension treatment and drugs

10. The market
•Modern lifestyle challenges leads to the rise in the importance of :
–Stamina and strength
–Immunity
–Virility
–Beauty/Youthfulness
–Sports Nutrition
–Ageing “Facilitators”
•The global share of older people (aged 60 years or over) increased from 9.2 per cent in 1990 to 11.7 per cent in 2013 and will continue to grow as a proportion of the world population, reaching 21.1 per cent by 2050
UN Report “World Pupulation Ageing 2013”

11. The market
•Drivers for Halal demand
–Increased in Health awareness
–Demand is huge
–Doubt: Unsure Halal or otherwise
–Medicines: Non-Halal versions available but Halal alternatives preferred
–In line with the Halal concept

12. The Market Lessons from the food industry
..What the Council says it has found in this year's re-audit of the Ajinomoto taste enhancer is that the company is now using the bactosoytone pig enzyme in its production process instead of the polypeptone enzyme it used in the past. The reason is that while both enzymes can be used as a medium to cultivate the bacteria needed to produce the compounds necessary for the production of the enhancer, the bactosoytone enzyme produces more bacteria and thus also more compounds. Some experts have argued that this is not really a problem since the pig enzyme does not actually get into the product. It is used only to grow the bacteria and is not included in the bacteria……
…..Fortunately, the Ajinomoto company has had the good sense to pay serious heed to the MUI's demands, thereby avoiding a possible confrontation. It has changed its bacterium growing medium to a plant derivative while promising to withdraw its dubious products from the market.
excerpt from Jakarta Post, 4 Jan 2001

13. Source: News 5 – ChannelNewsAsia; Mediacorp
The Market Lessons from the food industry

14. •Why did the market react the way they did?
•What is stopping Halal consumers from buying seemingly beneficial products?
•What is Halal anyway?
•Why demand for Halal?
The Market Lessons from the food industry

15. Important Concepts
• Halal
• Toyyib
• Mashbuh
• Toyyib
• Najis
• Khabith

16. Basic Concept of Halal Consumption
•Halal - An Arabic word meaning “permissible”
•Not limited to only eating and drinking
•Includes consumption, usage, actions, words, and thoughts
•Halal concept is a lifestyle concept –
way of life
•For Muslims, sinful not to live Halal

17. •Tayyib
–Wholesome; good. Nutritious; benefit to growth and repair; SAFE
–Do not cause you harm; cancer causing, allergens
•Muslims are strongly encouraged to consume Halal & Tayyib
Basic Concept of Halal Consumption

18. •Mashbuh (dubious; doubtful)
–Means food that is doubtful of its Halalness
–Halal and Tayyib on the outset but feels unsure
–Muslim customers are taught to stay away from actions or items that are considered Mashbuh
•To prevent doing non-Halal action or consuming non-Halal food accidentally; doing or consuming non-Halal food is not allowed and sinful
Basic Concept of Halal Consumption

19. Najis
•An Arabic word, literally meaning filthy / dirty
•Items which are not allowed to be on the body when performing prayers; it is sinful if it does
•Non-Halal for consumption
•There are two types of Najis:
oNajis substances are well-defined in the Islamic religion
oThings that are tainted with the Najis substances. e.g Halal drinks that are mixed with alcoholic beverages
Basic Concept of Halal Consumption

20. •Najis substances
Blood
Non-Halal slaughtered poultry and meat
Non-approved animals for slaughter (incl, meat, innards)
Alcoholic beverages
Swine
Dogs/Loosed hair of cats
Urine
Feces
Vomit
Basic Concept of Halal Consumption

21. Light
Intermediate
Heavy
Urine of:
• <2 year old boy
• fed on mothers’ milk only
• Alcoholic beverages
• Blood
• Excrement
• urine
• non-Halal chicken/beef
• pigs
• dogs
Spray with clean water and wipe clean
Wash with detergent/soap and water until no trace of
• smell
• colour
• texture
2 step wash:
1.Wash 1x with earth solution
2.Wash 6x with clean water
Examples
Cleaning Method
Basic Concept of Halal Consumption

22. •Khabith (Disgusting) items/substances
Category is generally defined by community at large
Considered as non-Halal
Eg.
Most insects (eg. Ophiocordyceps sinensis)
Sago Worm Larvae/earthworm/bamboo worm
Tree Lizards/monitor lizards
Garden snails
Basic Concept of Halal Consumption

23. •It is a religious requirement for Muslims customers to consume Halal and Wholesome (Tayyib); sinful if not
•Muslims cannot consume Najis substances, or food that are tainted with Najis substances; in medicine, where there are Halal alternatives – it will be strongly preferred
•Khabith (disgusting) items are non-Halal for consumption. Some are considered Najis
•Always manufacture using raw materials, processing aids and other materials that are Halal and Tayyib (Tayyib concept applies to all)
•Consumers have various levels of understanding of Halal and food manufacturing
Basic Concept of Halal Food

24. •Looks like ( or with images of najis/non-Halal)
Religious Sensitivity
& Cultural Discomfort

25. •Taste like (similar tastes like najis/non-Halal)
–tastes or creation of perception that bears resemblance of :
•Alcoholic beverages; wines etc
–Technology in food is so advanced
–Friends can identify the taste
Religious Sensitivity
& Cultural Discomfort

26. •Sounds like (names of najis/non-Halal)
–Names that create the of perception that bears resemblance of:
•Pigs/pork
–Bak Kut Teh
•Alcoholic beverages
–Non-Alcholic wines; Tonic wines
Religious Sensitivity
& Cultural Discomfort

27. Regulatory and Certification

28. Regulatory and Certification
•Regulations
–Halal-related laws in various Halal markets exists including :
•USA (eg. New York, Maryland)
•Singapore
–Different approaches to enforcement of laws
–Not all markets has got Halal Laws; labeling laws

29. Regulatory and Certification
•Certification
–No ONE Halal standard
•Not all certification recognised by all
•Competition
–“unclear” or perceived to be lack of transparency
–inconsistent requirements
–“inefficient” or perceived to be lack of urgency

30. Regulatory and Certification
•Approach the Halal market as import requirement
–Legal requirements
–Consumer requirements
•Approach the Halal market sensitively
–Market/consumer dynamics
–Certification dynamics
•Approach the Halal market with commitment

31. Conclusion
•Halal market for food and nutraceuticals is huge and growing..a market worth growing into
•A market with religious sensitivities
–It is a religious market
–Approach carefully
–Can potentially be more explosive than a health scare

32. Thank you