2020 Tokyo Olympic Games: Halal Business Opportunities

Over the years, the Olympic Games have brought about economic and social benefits to the hosting nations. With the approaching 2020 Tokyo Summer Olympics and Paralympic Games, Japan is expected to receive up to 40 million visitors, and the Japanese Government has been steadily opening up their economic borders for new business opportunities. One promising area is the halal food and beverages (F&B) industry. 

Focusing on the summer games event alone, Japan will be hosting up to 450,000 athletes and delegates from all over the world, with 40% consuming and focusing on halal food products. This opens up a USD300 million worth of market translated in numerous segments in the food industry, particularly on halal ready-toe at meals (RTM), and nutritional and high energy food products. It is estimated that the sports delegations will need up to 140 million serving of halal meals during their stay at the Athletes Village. 

Recognising the massive potential of this emerging halal market, the Malaysian Government is steadily enriching the halal agenda to penetrate the Japanese market, 2020 Tokyo Olympic Games: Halal Business Opportunities December 2019 | 7 in terms of capacity development of local manufacturers and service providers as well as securing economic partnership through Government-to- Government (G2G) agreements. Several key strategic thrusts have been identified as enablers to realise the aspiration of having Malaysian F&B industry players tap into this market. 

One of the central enablers is Malaysia’s holistic halal certification and standards. Being a modern and progressive Islamic country with an open economy and a well-developed physical and institutional infrastructure to support the whole halal ecosystem, Malaysia has the edge in the development of the halal industry. Malaysia currently houses 13 halal and halal related standards covering food products, cosmetics, pharmaceutical and logistics. This Halal certification can be regarded as an extension of the existing standards in manufacturing and related services sector such as Good Manufacturing Practice (GMP) Hazard Analysis and Critical Control Points (HACCP) and Food Safety Standards (FS2200). 

With this globally recognised halal certification and standards, local industry players can leverage its reputation to showcase that their products and services are at par with global standards. Adhering to the principles of halal is not just being permissible according to the Islamic law, but it is in line with other global values such as using ethically sourced materials, hygienic, environmentally friendly and safe manufacturing practices as well as producing nutritionally balanced products. It is not surprising that Japan has agreed to sign a Memorandum of Cooperation (MoC) with Malaysia on Halal Cooperation on 26 November 2018 and to be the only country to secure such co-operation, it serves as a testament of high standards practised by the country in regards to halal.

The second enabler is providing the right products to the targeted consumers – the athletes and visitors. As the demand for halal food peak during the Olympic Game season, fast and fresh alternatives food will be preferable compared to traditional processed food. Hence, halal central kitchen and halal ready-to-eat products will be the business model of choice in tapping this market potential. 

Malaysian F&B players are encouraged to diversify into ready-to-eat meals–shelf-stable fresh food in advanced packaging such as retort pouches that will appeal to a broader range of consumer given its convenience. Simultaneously, central kitchens dedicated to preparing halal meals will serve almost 140 million fresh halal meals during the event. Continuous research and development (R&D) are essential in developing these products to meet the nutritional demand and taste preferences of the end consumers. Malaysian producers need to incorporate local Japanese taste into their end products, indirectly offering a halal option for Japanese consumers.