Across Southeast Asia today, generations of Muslims are living vastly different lives than their parents did, shaped by two potent forces: a resurgence of faith and the spread of Western-style consumerism.
Influenced by the Middle East—the birthplace of Islam—yet rooted in local culture and circumstances, they are fueling a rapidly evolving market for halal fashion, beauty, travel, finance, technology and food in the key markets of Indonesia, Malaysia, Singapore and Brunei.
The Muslim population here numbers some 250 million, or roughly 40% of the population, and is part of the 1.9 billion global Muslim population, who spent a total of $2 trillion in 2021, according to research firm DinarStandard—with expenditure forecast to reach $2.8 trillion by 2025. Islamic financial assets stood at $3.6 trillion globally in 2021, up 7.8% from a year earlier.
Malaysia ranks first and Indonesia fourth in DinarStandard’s Global Islamic Economy Indicator, which looks at the robustness of sectors including Islamic finance, halal food, halal travel and modest fashion.
Saudi Arabia and the United Arab Emirates rank second and third, respectively.
That makes Southeast Asia not just a mass market but also a test bed for new trends. Big brands and startups alike are entering this competitive field, fronted by founders who blend the personal and the spiritual with commerce.
Connected by technology to the global ummah, or world community of Muslims, some local brands are making a leap to world markets— targeting Muslim minorities in North America, Europe and elsewhere, and leaving big global brands playing catch-up.
Our report, “The New Muslim Consumer: How Rising Observance is Reshaping the Consumer Landscape in Southeast Asia and Beyond,” is a collaboration between Wunderman Thompson Intelligence and VMLY&R Commerce’s Muslim Intel Lab. This study includes original consumer data from a survey of 1,000 consumers in Indonesia and Malaysia, conducted in May 2022 by SONAR™; new trends; interviews with experts, analysts and influencers; and five original case studies.
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