Published On: Sat, Nov 11th, 2017

Muslim population all over the world, a huge potential for consumption

Muslim population all over the world is a huge potential for consumption

As the competition among companies in the business world toughens potential markets for consumption become more important and even vital for survival of such companies and they put in their best efforts to find new markets for their products and services. In the past, when referred to consumption – and especially electronic and/or luxury goods – most people would think of the developed western societies mainly with Christian populations. But, times have changed and we have a very different picture today.

To provide an example, based on the results of the research conducted in 24 countries to include Turkey, Indonesia and India, increasing consumption in such Muslim country markets due to increased purchasing power and the gradual development of Islamic banking will enable this group of countries to have a say in the global economy (consumption and hence production) in the very close future.

It is a confirmed fact that one in four people in the world are Muslims, and contrary to what is believed, there is a large Muslim population outside the Middle East and Asia as well. In fact, it is observed that Muslims now represent the fastest growing religious group in the world and it is expected that the current 1.7 billion Muslim population will double in the second half of the 21st century and that Muslims will surpass Christians in number and become the world’s largest religious group. This is one of the major reasons why experts believe the role of Muslims in the global economy will be much stronger in the coming decades.

Based on research, the global Islamic consumption market is forecasted to be around USD 3.6 trillion dollars currently and experts believe it will exceed 5 trillion dollars in 2020. This is certainly not the only reason for the eventual future picture but we also need to consider the fact that in Muslim markets consumption is rapidly accelerating due to increased purchasing power and the gradual development of Islamic banking in these countries.

Last but not the least, populations in Muslim countries are observed to have a much greater hunger for technology – and goods as compared to others. So when we put all these facts and observations together it would not be very difficult to determine for companies to put more emphasize on referred consumer groups and populations in Muslim countries, to include detailed marketing and preference surveys and ways of penetrating said markets to grab the shares that would help them to survive.