Halal Supply Chain: Challenges of Halal Certification in Japan

Abstract

Following to the significant growth of the Muslim population and Muslim-friendly tourism in Japan, halal products and services have gradually been accepted and popular in the Japanese market. Clearly, firms from Muslim and non-Muslim backgrounds have united and developed a plan to participate in the halal supply chain paradigm. This favourable circumstance has increased demand for halal certification. With the halal certification, Japanese companies would be able to gain access to the Islamic market and demonstrate the company’s high transparency and safety standards. However, unlike in Muslim-dominant countries such as Malaysia and Indonesia, there is no such governmental body and no approval system in Japan that makes the certification process, which can be complicated and costly. There are more than 30 halal certification bodies (HCBs) in Japan. The standards of Halal certification will vary depending on the certification body that grants the certification. While there are vast opportunities to explore, there are also numerous challenges faced by the halal players in Japan. This drives this paper's investigation of the halal industry's growth and the difficulties in running a halal supply chain. Based on in-depth interviews with a number of HCBs in Tokyo and Osaka, this study offered insightful information about the state of the halal supply chain in Japan at the time. It is believed that this paper would increase knowledge of the halal business, foster a better understanding of it, and suggest steps Japan may take to make its halal supply chain more sustainable.