Halal Innovation: Opportunities and Challenges in the Development of the Thai Halal Industry

Abstract

Amid intensifying global competition, the Thai halal industry is facing a critical turning point within a global halal market currently valued at over 2.8 trillion USD and expected to reach 9.45 trillion USD by 2034.This study aims to analyze the role of “halal innovation” as a decisive factor for the sustainable development and global competitiveness of the Thai halal industry. The primary problem the industry is facing is its reliance on traditional production, lack of application of modern technology, and an inability to create differentiation to meet the demands of modern consumers who are concerned with health and sustainability. The study employed documentary research, reviewing literature related to halal innovation, global market trends, and the situation of the Thai halal industry to systematically synthesize opportunities and challenges. The findings reveal that Thailand has immense opportunities to develop halal innovation through the application of advanced technologies such as blockchain for traceability, biotechnology, and artificial intelligence, on the basis of the “Halalan Toyyiban” principle as its core. However, the industry faces four significant challenges: 1) structural and policy issues, 2) capital and investment, 3) human resources, and 4) perception and acceptance. The study concludes that innovation is not an “option” but a “necessity” and the key to leading the Thai halal industry to a position of sustainable leadership in the global market.