ABSTRACT
The term "halal" implies anything, including food, drinks, medicines, cosmetics, or other consumption items, which is made according to the requirements of the Islamic dietary and ethical laws. Taiwan does not embrace the religion of Islam. Yet, the halal industry finds its way here because more and more Muslim tourists are coming, the local Muslim population is increasing progressively, and the global demand for halal-certified products is increasing. This paper provides an overview of the emergence and development of the halal industry in Taiwan, including insights from a business ecosystem perspective, as well as future prospects. It examines the role of halal certification bodies in government policies and private sector initiatives aimed at creating a halal-friendly environment. Also, it highlights the challenges faced by companies in Taiwan in the halal market and the opportunities that can benefit them in terms of growth and expansion. By analyzing the strategic efforts of Taiwan and its market dynamics, this study aims to give a comprehensive view of the business ecosystem of halal industry prospects in Taiwan.
Keywords: Halal Industry, Halal Certification, Business Ecosystem, Taiwan, Islamic Dietary Laws
INTRODUCTION
The halal industry in Taiwan is proving to be a key player among emerging global market participants, driven by both local concerns and international trends. Institutions such as the Taiwan Halal Integrity Development Association (THIDA) have been established as critical pillars of halal product growth, which stretches across food and cosmetics (Anatasha & Malahayatie, 2024). Certainly, being a Muslim-minority country has not stopped companies in Taiwan from venturing into the halal business because they perceive value and also trend orientation, which indicates that there is an enabling internal and external environment for halal activities (Amalia et al., 2023). There is currently no formal development policy governing the industry, which hampers cohesive growth and international competitiveness. The local Muslim community and mosques support for halal certification in Taiwan builds confidence among consumers (Adham et al., 2020). Although it is characterized by affordability and impulse product purchases, the market has considerable room for improvement compared to South Korea and Japan in terms of brand identity (Muhamad et al., 2020). The New Southbound Policy, therefore, aims to enhance Taiwan's presence in the global halal market, particularly in Malaysia (Muhamad et al., 2020).
The halal industry in Taiwan has a significant impact on a wider circle, encompassing more than US$1 trillion worth of global halal markets. Food, cosmetics, and finance are among the sectors included in this industry, which has a growing ecosystem supported by several local initiatives and certification bodies. This will be described in the following subsections, which outline the major highlights and prospects of the halal industry and its business ecosystem in Taiwan. For halal certification, local Muslims and mosques are the first step toward the foundation needed for industry growth (Adham et al., 2020). The halal industry is making a great part of the future of Taiwan in bringing importance to the economic sector concerning the global demand for halal products and furthering trade (Siradjuddin et al., 2024).
The adoption of halal practices is expected to stimulate innovation and perceived value in firms, thereby encouraging more companies to offer halal products (Amalia et al., 2023). More importantly, Taiwan has not yet developed a systematic policy for the development of the halal industry, which, therefore, makes it very incoherent in planning and strategy visibility (Adham et al., 2020). Based on the statement of Yang (2019), who studied consumer attitudes toward halal-labelled meat in Taiwan. The research found that most Taiwanese consumers are unfamiliar with halal standards, but those who understand halal principles are more likely to purchase halal-certified meat. Pratiwi et al. (2024) explored the purchasing decisions of Indonesian Muslim students in Taiwan when buying uncertified halal food products. The study highlights that, despite demand, many Muslim students struggle to find halal-certified food, leading them to rely on imported products or homemade meals. Muhamad et al. (2020) analyzed the internationalization of Taiwan’s halal food industry, focusing on exports to Malaysia. The study found that while Taiwan’s halal products have potential in international markets, challenges remain in branding, halal assurance, and consumer trust.
The paper's objectives are to investigate the halal industry in Taiwan as well as the business ecosystem challenges, opportunities, and prospects in other regions.
RESEARCH METHOD
This study attempts to increase and investigate all possible entries on the introduction of the halal industry and the business ecosystem prospects in Taiwan in a deep literature review approach. The methodology consists of extensive reading and analysis of academic journals, industry reports, government policies, and international benchmarks in conjunction with the halal industry. Some themes that emerge in the research study include Taiwan's current halal certification processes, market dynamics, consumer behaviors, and the roles played by the government and private sectors in promoting the halal ecosystem. By systematically reviewing the existing literature, this study will discover critical gaps, SWOT analysis, and opportunities within Taiwan's halal market, especially regarding the alignment of local practices with global standards. The method will also feature comparisons with other thriving halal ecosystems worldwide to draw applicable insights and recommend actions for Taiwan.
RESULTS AND DISCUSSION
Overview of the halal industry in Taiwan
The agricultural halal industry in Taiwan has developed along with the increased interaction of Taiwan with Muslim countries and the growth of the main global demands of such nations. Indeed, it mainly consists of several sectors such as food and beverages, cosmetics, pharmaceuticals, and tourism, with an aim at establishing Taiwan as a Muslim-friendly destination.
Table 1. Overview of the halal industry in Taiwan
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Aspects
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Details
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Historical context and development
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The evolution of the halal industry initially had limited involvement but later expanded due to increased awareness and partnerships with Muslim-majority nations.
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Milestones include the formation of certification bodies like the THIDA. Partnerships with ASEAN countries for halal trade.
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Key developments include increasing certification of food products, government training initiatives, and halal tourism projects, particularly under Taiwan's New Southbound Policy (NSP).
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Current market landscape
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The halal market in Taiwan is experiencing growth, driven by its export potential and the influx of Muslim tourists from Southeast Asia.
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Key sectors are dominated by food and beverages, with emerging interests in halal cosmetics, pharmaceuticals, and tourism infrastructure.
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Key players include local authorities, local producers, and export-oriented food manufacturers, and active government-backed initiatives in tourism development.
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Government Policies and Support
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Under the NSP, the government promotes the development of halal products and tourism. Certification training, alignment with international standards (e.g., Malaysia’s JAKIM), and support for small and medium enterprises (SMEs).
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Sources : (Taiwan Halal Integrity Development Association (THIDA), 2021; Taiwan External Trade Development Council (TAITRA), 2022; Wardhani, et al, 2021; Chantarungsri, et al., 2024).
The development of the halal industry in Taiwan has not been alien to its specific historical background as a Muslim-minority society. This special growth involved several aspects, including certification processes, market strategies, and consumer perceptions, which all shape the industry discussed in relation to each of these themes, providing insights into the current state and future potential of the industry. The local Muslim community, mosques, and the like play their roles in creating a facilitative environment and thus play a big part in advancing halal certification (Adham et al., 2020).
Multiple certification bodies exist in Taiwan, providing varying emphases from business- to community-based. Poor development policy for the halal industry has made collective growth a necessity. Integrated strategies for strengthening the sector are essential. A new Southbound Policy, which commenced in 2016, aimed to enhance Taiwan's presence in the global halal market in Malaysia. Research results show that non-Muslim consumers in Taiwan are generally receptive to halal products, with a considerable number willingly buying them. Despite such accomplishments, a significant challenge still lingers: developing a strong brand name that will give it a competitive advantage over other Muslim-minority countries, such as South Korea and Japan, which are also entering the halal market.
Table 2. SWOT Analysis Table: Overview of the halal industry in Taiwan
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Factors
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Description
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Strengths
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Taiwan has a growing number of halal-certified restaurants and hotels catering to Muslim tourists.
The government supports halal certification through local authorities.
Strong technological and food innovation capabilities in the food sector.
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Weaknesses
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Limited awareness among local businesses regarding halal compliance.
High cost of halal certification and lack of standardized regulations.
Low domestic demand for halal products due to a small Muslim population.
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Opportunities
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Growing Muslim tourism market, especially from Southeast Asia.
Expanding halal exports to neighboring Muslim-majority countries like Indonesia and Malaysia.
Potential for halal cosmetic and pharmaceutical industries.
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Threats
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Competition from regional players like Malaysia, Indonesia, and Thailand in halal market dominance.
Stringent international halal certification requirements make export processes complex.
Geopolitical factors affecting trade agreements with Muslim-majority countries.
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Sources: (Adham et al., 2020; Houda, 2023; Houda, 2023; ElMassah, 2015; Wibowo & Khoiruddin, 2020; Napitupulu et al., 2024; Lamsali et al., 2023; Anggara, 2017; Lubis & Dzakirah, 2023; Sulaiman et al., 2023).
Taiwan’s halal industry is growing, driven by government policies and innovation in the food sector. The biggest challenge is limited local awareness, as well as the high cost of Halal certification. Expansion in tourism and exports presents new economic opportunities. Competing with major halal hubs like Malaysia and Indonesia requires stronger international halal certification standards (Adham et al., 2020).
The New Southbound Policy (NSP) will help Taiwan's halal upliftment products reach markets such as Malaysia; however, it still requires more time, as brand promotion and product assortment are lagging behind those of countries like South Korea and Japan (Muhammad et al., 2020). The absence of a formalized halal industry development policy further limits strategic planning and coordination (Adham et al., 2020). Consumer awareness: The demand for halal products is driven by health and faith considerations ingrained in Muslim consumers (Noor et al., 2023). Innovation-oriented companies that understand the value of halal and are also innovation-oriented are assumed to be more successful in the market (Amalia et al., 2023).
There is no proper policy-supported and regulatory framework within which countries such as Taiwan can focus on halal certification; thus, the development of the industry is limited in terms of international competitiveness (Adham et al., 2020). With mosques and local Muslim communities, halal certification is very significant in Indonesia as a lingering basis for the industry within a Muslim-minority situation (Adham et al., 2020). The New Southbound Policy would facilitate Taiwan's relationship with the rest of the world in terms of the halal market; however, the brand and products are still lagging behind those of other competitors, such as South Korea (Muhamad et al., 2020).
Business ecosystem and prospects of the halal industry in Taiwan
The halal industry in Taiwan has just begun its journey as a major player in the international market, with potential business ecosystems and opportunities. Taiwan is a Muslim-minority country without a significant establishment for halal business development but has set a foundation for growth. The government is, however, lacking a formal development policy to further boost its ecosystem (Anatasha & Malahayatie, 2024; Adham et al., 2020). The halal certifies and markets halal products. Certification processes have a considerable involvement of local Muslims and mosques to foster the creation of trust and engagement within the community. For instance, there is recognition in Malaysia of Taiwan's certification bodies to assist it in entering the global halal market. The global halal market is estimated to be worth more than US$1 trillion, creating a wide scope for lucrative opportunities for Taiwan’s players (Adham et al., 2020).
Table 3. Business ecosystem and prospects of the halal industry in Taiwan.
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Aspects
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Details
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Business Opportunities
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Growth sectors are predominantly food and beverage, with an emerging focus on halal tourism, cosmetics, and pharmaceuticals. Taiwan’s manufacturing capabilities support the production of high-quality, halal-certified products.
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Opportunities attracting investments for halal-certified exports, partnerships with ASEAN nations, and Muslim-friendly tourism infrastructure catering to Southeast Asian travellers.
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Investments and Trade
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Investment trends and government incentives under the New Southbound Policy encourage halal certifications. Increasing private investments in food technology, packaging, and compliance with global halal standards.
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Key export markets Malaysia, Indonesia, and the Middle East are major export destinations. Collaboration with global halal certification bodies fosters international trade.
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Trade partnerships enhanced bilateral agreements and participation in trade expos to showcase Taiwanese halal products.
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Challenges and Barriers
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Regulatory challenges complexities in adhering to international halal standards; need for consistency in certification processes.
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Market entry barriers include limited awareness of halal certification benefits among local businesses. addressing misconceptions about halal being restrictive or exclusive to Muslim consumers.
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Consumer education promoting awareness of halal as a marker of quality, hygiene, and inclusivity.
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Sources: (Lip, 2023; Rahman, et al,. 2020; Napitupulu, et al, 2024; Shaarani, et al,. 2023; Chen, & Pandia, 2021; Abdullah, et al, 2018; Salaheldeen, M., & Battour, M. 2024; Hijriah, et al, 2024; Hoontrakul, P. 2017).
Firms that understand the benefits of halal and are innovation-oriented are likely to be the most successful in this sector (Amalia et al., 2023). Taiwan's New Southbound Policy is also intended to establish the country's increased presence in the global halal market, which could potentially include Malaysia (Muhamad et al., 2020). The halal industry in Taiwan holds enormous potential but faces challenges from established players such as South Korea and Japan in the international halal market (Muhamad et al., 2020).
Align Taiwan's halal certification standards with global regulatory bodies, such as JAKIM (Malaysia) and MUI (Indonesia). Develop joint ventures with ASEAN halal industry players. Enhance domestic awareness and business participation. Conduct workshops and training for local food companies on halal certification and market opportunities. Introduce tax incentives for businesses adopting halal standards. Expand halal tourism and trade networks. Invest in halal-friendly infrastructure (e.g., prayer rooms, halal-certified restaurants). Market Taiwan as a Muslim-friendly travel destination to attract tourists from ASEAN and the Middle East. Leverage Taiwan’s technological edge in halal product innovation. Utilize AI, blockchain, and IoT for traceable and transparent halal supply chains. Develop value-added halal-certified products (e.g., organic halal food, halal beauty products) (Amalia et al., 2023).
The halal market in Taiwan reflects the challenges and opportunities for foreign investors. While the industry is flourishing, it still requires technical navigation for development. To benefit from its possible avenues of success, one has to know the local context as well as consumer behaviors. There is no coherent development policy on the halal industry in Taiwan, which could create uncertainty for investors, particularly on regulation and standards (Adham et al., 2020). Most of Taiwan’s people are unaware of halal products, which may hinder market entry strategies (Yang, 2019). Compared to its easily neighboring established halal markets in South Korea and Japan, it may be challenging to recognize its brand and gain a market share (Muhamad et al., 2020). There is a growing interest in halal products among non-Muslims with substantial willingness to purchase halal-labelled items (Nugraha et al., 2022).
Case studies and success stories of halal businesses in Taiwan
The halal business context in Taiwan offers several case studies, along with success stories highlighting the significant growth and promise of halal-certified firms. These firms thrive in a Muslim minority context due to varying internal and external pressures vis-à-vis perceived value and innovation. The organizations that create opportunities for discovering new ways and means have a higher likelihood of being successful in the halal market, as they tend to be more proactive at such actions and would easily catch up with the customers as in their needs and preferences (Amalia et al., 2023). The role of externals was believed to induce an entry of firms into the halal practices, like consumer demand for halal products (Amalia et al., 2023).
Table 4. Case studies and success stories of halal businesses in Taiwan.
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Aspects
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Details
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Successful Halal Businesses
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This includes food manufacturers such as Ve Wong Corporation, halal-certified beverage brands, and niche cosmetics producers.
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Strategies for success focus on certification from trusted bodies, such as the Chinese Muslim Association (CMA); innovation in product packaging; and alignment with global halal standards to penetrate international markets.
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Market penetration leveraged Taiwan’s New Southbound Policy to access ASEAN markets. Effective use of halal certification in branding and consumer trust-building.
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International Collaborations
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Key partnerships and collaborations with Malaysia's JAKIM and Indonesia's MUI for halal certification. Partnerships with halal food expos to showcase Taiwan’s products globally.
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Impact on Taiwan's industry enhanced credibility of Taiwan’s halal-certified products, increased market access to Muslim-majority nations, and improved global reputation in halal trade and tourism.
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Innovative Practices
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Leveraged blockchain for halal supply chain traceability; integrated halal principles with environmental sustainability in product development.
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Source : (Amalia, et al., 2023; Chen & Pandia, 2021; Rahman, et al., 2020; Shaarani, et al., 2023; Salaheldeen & Battour, 2024; Napitupulu, et al., 2024; Sulaiman, et al., 2023; Battour & Ismail, 2016; Junejo, et al., 2023; Al-Shami & Abdullah, 2023).
Products from Taiwan’s halal food industry are increasingly being exported and positioned at markets such as Malaysia for impulse purchases, while Taiwan itself is still behind more competitive countries such as South Korea (Muhamad et al., 2020). Case studies have shown evidence of the present and future prospective trends in the development of the halal industry in Taiwan; however, it still has a considerable number of hurdles, especially in terms of generating a strong brand identity and increasing product variety for global competitive advantage. Case studies and projects reporting the success of halal businesses in Taiwan give information on how much they have grown and adapted in a predominantly non-Muslim society.
Case studies of halal food promotion in Taipei with the Taiwan Halal Integrity Development Association shoulder most of the projects in promoting halal food in Taipei, where it plays a very important role in providing certification facilitation and standard compliance in the Kota (Rifa'i, 2018). Consumer insights research indicates that halal-certified firms in Taiwan base their operations on perceived value and innovation when enhancing their market presence and consumer trust (Amalia et al., 2023). Halal tourism initiatives like Muslim-friendly hotels in Taiwan are increasingly utilizing halal certificates and showing halal logos to entice Muslim tourists, which greatly benefits customer satisfaction (Mandalia & Hidayat, 2022). Such empirical market research studies can shed light on the fact that understanding the needs of Muslim travellers will lead to better services and facilities, ultimately improving the entire tourism experience in Taiwan (Mandalia & Hidayat, 2022).
Future prospects and recommendations for Taiwan's Halal industry
The scope of Taiwan in terms of its halal industry is brightened by the current trend of increasing global demand, coupled with vigorous infrastructure and certification systems. There are key areas that Taiwan has to work on to establish its presence in the halal market, so much so that it wants to take advantage of the prospect that has appeared on the horizon. The halal market is promising in terms of market expansion and consumer education, with rapid growth that boasts a significant consumer base of more than 1.3 billion Muslims worldwide (Regenstein et al., 2014). This involves developing infrastructure by establishing a robust halal industrial framework to ensure sustainability and growth (Siradjuddin et al., 2024). Among other things, this will include strengthening supply chains and improving halal certification processes in compliance with international standards (Abdullah et al., 2024). Integration with Islamic finance will integrate the halal industry, as this combination would complement a robust ecosystem to encourage business growth and innovation (Hassan et al., 2021).
The future is very bright for the halal sector of Taiwan because of the increasing world's inclination toward halal goods. However, Taiwan needs to work on several areas, including policy development, marketing strategies, and international cooperation, for the promise to be fulfilled. There is no formalized halal industry development policy in the integrated halal industry policy of Taiwan, which hinders the cohesive growth of the halal industry. A comprehensive policy would have coordinated activities of all parties involved and would streamline procedures of certification (Adham et al., 2020). A post-COVID-19 competition can be advantageous when implemented in the form of a halal value chain (Sari et al., 2023). This strategy establishes a sustainable ecosystem in the safety and comfort of customer consideration. Internally, internationalization would involve expanding beyond the Malaysian market to reach other markets where Taiwan’s halal products are concerned; this would, therefore, enhance the company's brand identity and value share (Muhamad et al., 2020). Taiwan can develop international partnerships with countries where halal markets are established, such as Malaysia and Indonesia, thereby facilitating knowledge transfer and enhancing halal assurance systems in Taiwan (Anatasha & Malahayatie, 2024).
Taiwan's halal industries offer a good opportunity to capitalize on its geographical proximity to Southeast Asia, thereby increasing market share. In this regard, Taiwan is taking initiatives to strengthen economic ties with Southeast Asia, making it easier for Taiwanese halal products to access the corresponding markets (Muhamad et al., 2020). More than USD 852 billion has been invested by Taiwan in Southeast Asia as FDI, which could be used for extensive development of trade relations for the promotion of halal products (Yang & Hsiao, 2016).
CONCLUSIONS
Taiwan's halal market is experiencing dynamic growth, supported by various government initiatives, including the New Southbound Policy, and strong global demand for halal-certified products. Key sectors include food, beverages, tourism, and cosmetics. The industry appears set to take off in initiatives around halal tourism, blockchain-enabled supply chains, and green halal product development. Key strategies for penetrating and driving trade include strategic collaborations with ASEAN and the Middle East. Synchronizing regulations, consumer science, and demystification will still be considerable hurdles. Ensuring a robust ecosystem for a thriving halal ecosystem requires seamless collaboration between businesses, government, and industry bodies. Investment in business R&D, infrastructure, and consumer outreach will be crucial for sustainable long-term growth and competitiveness. Governments will take the lead with incentives and great policies. Innovations will meet global halal standards, and businesses will develop new products. Industry associations should serve as bridges for knowledge sharing and access to markets. The halal industry, to a large extent, can make Taiwan a viable source of halal products for a dynamic and growing international Muslim market. That way, Taiwan can also develop a well-integrated and innovative system to spur competition in this lucrative economic sector.
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The Overview of the Agricultural Halal Industry and Its Business Ecosystem Prospects in Taiwan
ABSTRACT
The term "halal" implies anything, including food, drinks, medicines, cosmetics, or other consumption items, which is made according to the requirements of the Islamic dietary and ethical laws. Taiwan does not embrace the religion of Islam. Yet, the halal industry finds its way here because more and more Muslim tourists are coming, the local Muslim population is increasing progressively, and the global demand for halal-certified products is increasing. This paper provides an overview of the emergence and development of the halal industry in Taiwan, including insights from a business ecosystem perspective, as well as future prospects. It examines the role of halal certification bodies in government policies and private sector initiatives aimed at creating a halal-friendly environment. Also, it highlights the challenges faced by companies in Taiwan in the halal market and the opportunities that can benefit them in terms of growth and expansion. By analyzing the strategic efforts of Taiwan and its market dynamics, this study aims to give a comprehensive view of the business ecosystem of halal industry prospects in Taiwan.
Keywords: Halal Industry, Halal Certification, Business Ecosystem, Taiwan, Islamic Dietary Laws
INTRODUCTION
The halal industry in Taiwan is proving to be a key player among emerging global market participants, driven by both local concerns and international trends. Institutions such as the Taiwan Halal Integrity Development Association (THIDA) have been established as critical pillars of halal product growth, which stretches across food and cosmetics (Anatasha & Malahayatie, 2024). Certainly, being a Muslim-minority country has not stopped companies in Taiwan from venturing into the halal business because they perceive value and also trend orientation, which indicates that there is an enabling internal and external environment for halal activities (Amalia et al., 2023). There is currently no formal development policy governing the industry, which hampers cohesive growth and international competitiveness. The local Muslim community and mosques support for halal certification in Taiwan builds confidence among consumers (Adham et al., 2020). Although it is characterized by affordability and impulse product purchases, the market has considerable room for improvement compared to South Korea and Japan in terms of brand identity (Muhamad et al., 2020). The New Southbound Policy, therefore, aims to enhance Taiwan's presence in the global halal market, particularly in Malaysia (Muhamad et al., 2020).
The halal industry in Taiwan has a significant impact on a wider circle, encompassing more than US$1 trillion worth of global halal markets. Food, cosmetics, and finance are among the sectors included in this industry, which has a growing ecosystem supported by several local initiatives and certification bodies. This will be described in the following subsections, which outline the major highlights and prospects of the halal industry and its business ecosystem in Taiwan. For halal certification, local Muslims and mosques are the first step toward the foundation needed for industry growth (Adham et al., 2020). The halal industry is making a great part of the future of Taiwan in bringing importance to the economic sector concerning the global demand for halal products and furthering trade (Siradjuddin et al., 2024).
The adoption of halal practices is expected to stimulate innovation and perceived value in firms, thereby encouraging more companies to offer halal products (Amalia et al., 2023). More importantly, Taiwan has not yet developed a systematic policy for the development of the halal industry, which, therefore, makes it very incoherent in planning and strategy visibility (Adham et al., 2020). Based on the statement of Yang (2019), who studied consumer attitudes toward halal-labelled meat in Taiwan. The research found that most Taiwanese consumers are unfamiliar with halal standards, but those who understand halal principles are more likely to purchase halal-certified meat. Pratiwi et al. (2024) explored the purchasing decisions of Indonesian Muslim students in Taiwan when buying uncertified halal food products. The study highlights that, despite demand, many Muslim students struggle to find halal-certified food, leading them to rely on imported products or homemade meals. Muhamad et al. (2020) analyzed the internationalization of Taiwan’s halal food industry, focusing on exports to Malaysia. The study found that while Taiwan’s halal products have potential in international markets, challenges remain in branding, halal assurance, and consumer trust.
The paper's objectives are to investigate the halal industry in Taiwan as well as the business ecosystem challenges, opportunities, and prospects in other regions.
RESEARCH METHOD
This study attempts to increase and investigate all possible entries on the introduction of the halal industry and the business ecosystem prospects in Taiwan in a deep literature review approach. The methodology consists of extensive reading and analysis of academic journals, industry reports, government policies, and international benchmarks in conjunction with the halal industry. Some themes that emerge in the research study include Taiwan's current halal certification processes, market dynamics, consumer behaviors, and the roles played by the government and private sectors in promoting the halal ecosystem. By systematically reviewing the existing literature, this study will discover critical gaps, SWOT analysis, and opportunities within Taiwan's halal market, especially regarding the alignment of local practices with global standards. The method will also feature comparisons with other thriving halal ecosystems worldwide to draw applicable insights and recommend actions for Taiwan.
RESULTS AND DISCUSSION
Overview of the halal industry in Taiwan
The agricultural halal industry in Taiwan has developed along with the increased interaction of Taiwan with Muslim countries and the growth of the main global demands of such nations. Indeed, it mainly consists of several sectors such as food and beverages, cosmetics, pharmaceuticals, and tourism, with an aim at establishing Taiwan as a Muslim-friendly destination.
Table 1. Overview of the halal industry in Taiwan
Aspects
Details
Historical context and development
The evolution of the halal industry initially had limited involvement but later expanded due to increased awareness and partnerships with Muslim-majority nations.
Milestones include the formation of certification bodies like the THIDA. Partnerships with ASEAN countries for halal trade.
Key developments include increasing certification of food products, government training initiatives, and halal tourism projects, particularly under Taiwan's New Southbound Policy (NSP).
Current market landscape
The halal market in Taiwan is experiencing growth, driven by its export potential and the influx of Muslim tourists from Southeast Asia.
Key sectors are dominated by food and beverages, with emerging interests in halal cosmetics, pharmaceuticals, and tourism infrastructure.
Key players include local authorities, local producers, and export-oriented food manufacturers, and active government-backed initiatives in tourism development.
Government Policies and Support
Under the NSP, the government promotes the development of halal products and tourism. Certification training, alignment with international standards (e.g., Malaysia’s JAKIM), and support for small and medium enterprises (SMEs).
Sources : (Taiwan Halal Integrity Development Association (THIDA), 2021; Taiwan External Trade Development Council (TAITRA), 2022; Wardhani, et al, 2021; Chantarungsri, et al., 2024).
The development of the halal industry in Taiwan has not been alien to its specific historical background as a Muslim-minority society. This special growth involved several aspects, including certification processes, market strategies, and consumer perceptions, which all shape the industry discussed in relation to each of these themes, providing insights into the current state and future potential of the industry. The local Muslim community, mosques, and the like play their roles in creating a facilitative environment and thus play a big part in advancing halal certification (Adham et al., 2020).
Multiple certification bodies exist in Taiwan, providing varying emphases from business- to community-based. Poor development policy for the halal industry has made collective growth a necessity. Integrated strategies for strengthening the sector are essential. A new Southbound Policy, which commenced in 2016, aimed to enhance Taiwan's presence in the global halal market in Malaysia. Research results show that non-Muslim consumers in Taiwan are generally receptive to halal products, with a considerable number willingly buying them. Despite such accomplishments, a significant challenge still lingers: developing a strong brand name that will give it a competitive advantage over other Muslim-minority countries, such as South Korea and Japan, which are also entering the halal market.
Table 2. SWOT Analysis Table: Overview of the halal industry in Taiwan
Factors
Description
Strengths
Taiwan has a growing number of halal-certified restaurants and hotels catering to Muslim tourists.
The government supports halal certification through local authorities.
Strong technological and food innovation capabilities in the food sector.
Weaknesses
Limited awareness among local businesses regarding halal compliance.
High cost of halal certification and lack of standardized regulations.
Low domestic demand for halal products due to a small Muslim population.
Opportunities
Growing Muslim tourism market, especially from Southeast Asia.
Expanding halal exports to neighboring Muslim-majority countries like Indonesia and Malaysia.
Potential for halal cosmetic and pharmaceutical industries.
Threats
Competition from regional players like Malaysia, Indonesia, and Thailand in halal market dominance.
Stringent international halal certification requirements make export processes complex.
Geopolitical factors affecting trade agreements with Muslim-majority countries.
Sources: (Adham et al., 2020; Houda, 2023; Houda, 2023; ElMassah, 2015; Wibowo & Khoiruddin, 2020; Napitupulu et al., 2024; Lamsali et al., 2023; Anggara, 2017; Lubis & Dzakirah, 2023; Sulaiman et al., 2023).
Taiwan’s halal industry is growing, driven by government policies and innovation in the food sector. The biggest challenge is limited local awareness, as well as the high cost of Halal certification. Expansion in tourism and exports presents new economic opportunities. Competing with major halal hubs like Malaysia and Indonesia requires stronger international halal certification standards (Adham et al., 2020).
The New Southbound Policy (NSP) will help Taiwan's halal upliftment products reach markets such as Malaysia; however, it still requires more time, as brand promotion and product assortment are lagging behind those of countries like South Korea and Japan (Muhammad et al., 2020). The absence of a formalized halal industry development policy further limits strategic planning and coordination (Adham et al., 2020). Consumer awareness: The demand for halal products is driven by health and faith considerations ingrained in Muslim consumers (Noor et al., 2023). Innovation-oriented companies that understand the value of halal and are also innovation-oriented are assumed to be more successful in the market (Amalia et al., 2023).
There is no proper policy-supported and regulatory framework within which countries such as Taiwan can focus on halal certification; thus, the development of the industry is limited in terms of international competitiveness (Adham et al., 2020). With mosques and local Muslim communities, halal certification is very significant in Indonesia as a lingering basis for the industry within a Muslim-minority situation (Adham et al., 2020). The New Southbound Policy would facilitate Taiwan's relationship with the rest of the world in terms of the halal market; however, the brand and products are still lagging behind those of other competitors, such as South Korea (Muhamad et al., 2020).
Business ecosystem and prospects of the halal industry in Taiwan
The halal industry in Taiwan has just begun its journey as a major player in the international market, with potential business ecosystems and opportunities. Taiwan is a Muslim-minority country without a significant establishment for halal business development but has set a foundation for growth. The government is, however, lacking a formal development policy to further boost its ecosystem (Anatasha & Malahayatie, 2024; Adham et al., 2020). The halal certifies and markets halal products. Certification processes have a considerable involvement of local Muslims and mosques to foster the creation of trust and engagement within the community. For instance, there is recognition in Malaysia of Taiwan's certification bodies to assist it in entering the global halal market. The global halal market is estimated to be worth more than US$1 trillion, creating a wide scope for lucrative opportunities for Taiwan’s players (Adham et al., 2020).
Table 3. Business ecosystem and prospects of the halal industry in Taiwan.
Aspects
Details
Business Opportunities
Growth sectors are predominantly food and beverage, with an emerging focus on halal tourism, cosmetics, and pharmaceuticals. Taiwan’s manufacturing capabilities support the production of high-quality, halal-certified products.
Opportunities attracting investments for halal-certified exports, partnerships with ASEAN nations, and Muslim-friendly tourism infrastructure catering to Southeast Asian travellers.
Investments and Trade
Investment trends and government incentives under the New Southbound Policy encourage halal certifications. Increasing private investments in food technology, packaging, and compliance with global halal standards.
Key export markets Malaysia, Indonesia, and the Middle East are major export destinations. Collaboration with global halal certification bodies fosters international trade.
Trade partnerships enhanced bilateral agreements and participation in trade expos to showcase Taiwanese halal products.
Challenges and Barriers
Regulatory challenges complexities in adhering to international halal standards; need for consistency in certification processes.
Market entry barriers include limited awareness of halal certification benefits among local businesses. addressing misconceptions about halal being restrictive or exclusive to Muslim consumers.
Consumer education promoting awareness of halal as a marker of quality, hygiene, and inclusivity.
Sources: (Lip, 2023; Rahman, et al,. 2020; Napitupulu, et al, 2024; Shaarani, et al,. 2023; Chen, & Pandia, 2021; Abdullah, et al, 2018; Salaheldeen, M., & Battour, M. 2024; Hijriah, et al, 2024; Hoontrakul, P. 2017).
Firms that understand the benefits of halal and are innovation-oriented are likely to be the most successful in this sector (Amalia et al., 2023). Taiwan's New Southbound Policy is also intended to establish the country's increased presence in the global halal market, which could potentially include Malaysia (Muhamad et al., 2020). The halal industry in Taiwan holds enormous potential but faces challenges from established players such as South Korea and Japan in the international halal market (Muhamad et al., 2020).
Align Taiwan's halal certification standards with global regulatory bodies, such as JAKIM (Malaysia) and MUI (Indonesia). Develop joint ventures with ASEAN halal industry players. Enhance domestic awareness and business participation. Conduct workshops and training for local food companies on halal certification and market opportunities. Introduce tax incentives for businesses adopting halal standards. Expand halal tourism and trade networks. Invest in halal-friendly infrastructure (e.g., prayer rooms, halal-certified restaurants). Market Taiwan as a Muslim-friendly travel destination to attract tourists from ASEAN and the Middle East. Leverage Taiwan’s technological edge in halal product innovation. Utilize AI, blockchain, and IoT for traceable and transparent halal supply chains. Develop value-added halal-certified products (e.g., organic halal food, halal beauty products) (Amalia et al., 2023).
The halal market in Taiwan reflects the challenges and opportunities for foreign investors. While the industry is flourishing, it still requires technical navigation for development. To benefit from its possible avenues of success, one has to know the local context as well as consumer behaviors. There is no coherent development policy on the halal industry in Taiwan, which could create uncertainty for investors, particularly on regulation and standards (Adham et al., 2020). Most of Taiwan’s people are unaware of halal products, which may hinder market entry strategies (Yang, 2019). Compared to its easily neighboring established halal markets in South Korea and Japan, it may be challenging to recognize its brand and gain a market share (Muhamad et al., 2020). There is a growing interest in halal products among non-Muslims with substantial willingness to purchase halal-labelled items (Nugraha et al., 2022).
Case studies and success stories of halal businesses in Taiwan
The halal business context in Taiwan offers several case studies, along with success stories highlighting the significant growth and promise of halal-certified firms. These firms thrive in a Muslim minority context due to varying internal and external pressures vis-à-vis perceived value and innovation. The organizations that create opportunities for discovering new ways and means have a higher likelihood of being successful in the halal market, as they tend to be more proactive at such actions and would easily catch up with the customers as in their needs and preferences (Amalia et al., 2023). The role of externals was believed to induce an entry of firms into the halal practices, like consumer demand for halal products (Amalia et al., 2023).
Table 4. Case studies and success stories of halal businesses in Taiwan.
Aspects
Details
Successful Halal Businesses
This includes food manufacturers such as Ve Wong Corporation, halal-certified beverage brands, and niche cosmetics producers.
Strategies for success focus on certification from trusted bodies, such as the Chinese Muslim Association (CMA); innovation in product packaging; and alignment with global halal standards to penetrate international markets.
Market penetration leveraged Taiwan’s New Southbound Policy to access ASEAN markets. Effective use of halal certification in branding and consumer trust-building.
International Collaborations
Key partnerships and collaborations with Malaysia's JAKIM and Indonesia's MUI for halal certification. Partnerships with halal food expos to showcase Taiwan’s products globally.
Impact on Taiwan's industry enhanced credibility of Taiwan’s halal-certified products, increased market access to Muslim-majority nations, and improved global reputation in halal trade and tourism.
Innovative Practices
Leveraged blockchain for halal supply chain traceability; integrated halal principles with environmental sustainability in product development.
Source : (Amalia, et al., 2023; Chen & Pandia, 2021; Rahman, et al., 2020; Shaarani, et al., 2023; Salaheldeen & Battour, 2024; Napitupulu, et al., 2024; Sulaiman, et al., 2023; Battour & Ismail, 2016; Junejo, et al., 2023; Al-Shami & Abdullah, 2023).
Products from Taiwan’s halal food industry are increasingly being exported and positioned at markets such as Malaysia for impulse purchases, while Taiwan itself is still behind more competitive countries such as South Korea (Muhamad et al., 2020). Case studies have shown evidence of the present and future prospective trends in the development of the halal industry in Taiwan; however, it still has a considerable number of hurdles, especially in terms of generating a strong brand identity and increasing product variety for global competitive advantage. Case studies and projects reporting the success of halal businesses in Taiwan give information on how much they have grown and adapted in a predominantly non-Muslim society.
Case studies of halal food promotion in Taipei with the Taiwan Halal Integrity Development Association shoulder most of the projects in promoting halal food in Taipei, where it plays a very important role in providing certification facilitation and standard compliance in the Kota (Rifa'i, 2018). Consumer insights research indicates that halal-certified firms in Taiwan base their operations on perceived value and innovation when enhancing their market presence and consumer trust (Amalia et al., 2023). Halal tourism initiatives like Muslim-friendly hotels in Taiwan are increasingly utilizing halal certificates and showing halal logos to entice Muslim tourists, which greatly benefits customer satisfaction (Mandalia & Hidayat, 2022). Such empirical market research studies can shed light on the fact that understanding the needs of Muslim travellers will lead to better services and facilities, ultimately improving the entire tourism experience in Taiwan (Mandalia & Hidayat, 2022).
Future prospects and recommendations for Taiwan's Halal industry
The scope of Taiwan in terms of its halal industry is brightened by the current trend of increasing global demand, coupled with vigorous infrastructure and certification systems. There are key areas that Taiwan has to work on to establish its presence in the halal market, so much so that it wants to take advantage of the prospect that has appeared on the horizon. The halal market is promising in terms of market expansion and consumer education, with rapid growth that boasts a significant consumer base of more than 1.3 billion Muslims worldwide (Regenstein et al., 2014). This involves developing infrastructure by establishing a robust halal industrial framework to ensure sustainability and growth (Siradjuddin et al., 2024). Among other things, this will include strengthening supply chains and improving halal certification processes in compliance with international standards (Abdullah et al., 2024). Integration with Islamic finance will integrate the halal industry, as this combination would complement a robust ecosystem to encourage business growth and innovation (Hassan et al., 2021).
The future is very bright for the halal sector of Taiwan because of the increasing world's inclination toward halal goods. However, Taiwan needs to work on several areas, including policy development, marketing strategies, and international cooperation, for the promise to be fulfilled. There is no formalized halal industry development policy in the integrated halal industry policy of Taiwan, which hinders the cohesive growth of the halal industry. A comprehensive policy would have coordinated activities of all parties involved and would streamline procedures of certification (Adham et al., 2020). A post-COVID-19 competition can be advantageous when implemented in the form of a halal value chain (Sari et al., 2023). This strategy establishes a sustainable ecosystem in the safety and comfort of customer consideration. Internally, internationalization would involve expanding beyond the Malaysian market to reach other markets where Taiwan’s halal products are concerned; this would, therefore, enhance the company's brand identity and value share (Muhamad et al., 2020). Taiwan can develop international partnerships with countries where halal markets are established, such as Malaysia and Indonesia, thereby facilitating knowledge transfer and enhancing halal assurance systems in Taiwan (Anatasha & Malahayatie, 2024).
Taiwan's halal industries offer a good opportunity to capitalize on its geographical proximity to Southeast Asia, thereby increasing market share. In this regard, Taiwan is taking initiatives to strengthen economic ties with Southeast Asia, making it easier for Taiwanese halal products to access the corresponding markets (Muhamad et al., 2020). More than USD 852 billion has been invested by Taiwan in Southeast Asia as FDI, which could be used for extensive development of trade relations for the promotion of halal products (Yang & Hsiao, 2016).
CONCLUSIONS
Taiwan's halal market is experiencing dynamic growth, supported by various government initiatives, including the New Southbound Policy, and strong global demand for halal-certified products. Key sectors include food, beverages, tourism, and cosmetics. The industry appears set to take off in initiatives around halal tourism, blockchain-enabled supply chains, and green halal product development. Key strategies for penetrating and driving trade include strategic collaborations with ASEAN and the Middle East. Synchronizing regulations, consumer science, and demystification will still be considerable hurdles. Ensuring a robust ecosystem for a thriving halal ecosystem requires seamless collaboration between businesses, government, and industry bodies. Investment in business R&D, infrastructure, and consumer outreach will be crucial for sustainable long-term growth and competitiveness. Governments will take the lead with incentives and great policies. Innovations will meet global halal standards, and businesses will develop new products. Industry associations should serve as bridges for knowledge sharing and access to markets. The halal industry, to a large extent, can make Taiwan a viable source of halal products for a dynamic and growing international Muslim market. That way, Taiwan can also develop a well-integrated and innovative system to spur competition in this lucrative economic sector.
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