The market's growth is being shaped by Indonesia’s halal product assurance law, which will soon require mandatory halal certification for all imported goods. This shift is already having ripple effects in Japan. 

“There are currently more than 1,000 halal-certified companies in Japan, primarily focused on exports,” says Hind Remon, chairperson of the Japan Halal Association (JHA). “While food remains a key category, demand is now expanding to include raw materials used in cosmetics, ahead of Indonesia’s planned implementation of the law for non-food items in October 2026.”

A growing emphasis on raw materials used in food, cosmetics, and pharmaceuticals—particularly chemical and biochemical ingredients—has emerged as one of the most notable trends in Japan’s halal sector. These materials now account for about 60–70% of Japan’s halal-certified exports, according to Remon.

Consumer-ready halal goods represent a smaller portion of the market, although exports of halal-certified Wagyu beef, especially to Malaysia and Indonesia, are on the rise. 

“While exact certification numbers are difficult to obtain, Japanese export-oriented companies are increasingly seeking halal certification, especially in the food ingredient and cosmetics sectors,” says Shinya Yokoyama, co-founder of Food Diversity Inc., Japan’s leading halal food information provider.

Domestic demand is still nascent

At home, Japan’s halal market primarily serves the country's growing Muslim population and inbound Muslim tourists. According to Kyodo News, Japan’s Muslim population reached around 350,000 at the start of 2024, up from 110,000 in 2010, a more than threefold increase.

In terms of inbound tourism, Malaysia and Indonesia made up a combined 2.8% of Japan’s total inbound arrivals in 2024, with 506,883 and 517,651 visitors, respectively. Meanwhile, travelers from the Middle East represented just 0.5%, or roughly 166,259 visitors.

“Halal products in Japan still primarily serve inbound Muslim tourists and residents, though some spillover into local consumer interest is emerging,” Yokoyama notes. 

“While many Japanese consumers have heard the word 'halal,’ their understanding remains limited. They tend to choose restaurants based more on taste and quality than on whether the food is halal certified. With the growing popularity of Asian cuisine, there is potential for increased consumption by Japanese consumers in the future.”

This article was originally from here, click to continue reading.