Summary
Why Halal Certification Remains Elusive in the Philippines: A Story of Good Intentions and Hard Realities
A 2025 study from MSU-Iligan Institute of Technology examines why halal certification uptake remains low among food service businesses in the Philippines. Despite a global halal food market worth USD 2 trillion and a domestic Muslim population of 11 million, the country lags behind neighbours like Malaysia, Indonesia, and Singapore.
The research surveys 220 food business owners in Iligan City, Mindanao, and interviews 12 in depth. It applies the Theory of Planned Behavior, extended with awareness, preparedness, age, and gender.
Three factors significantly predict intention to seek certification. Perceived behavioural control is strongest — owners who believe they can navigate the process are more likely to try. Preparedness follows — businesses already segregating halal products show higher intention. Subjective norms rank third — customer demand substitutes for religious obligation in a Muslim-minority context.
Age has a direct negative effect. Younger owners are more willing; older owners with established customer bases see less incentive. Attitude, surprisingly, shows no significant effect. Positive feelings do not translate into action when practical barriers loom.
The qualitative interviews reveal the barriers. Financial constraints top the list — certification fees, renewal costs, and expensive halal supplies. Supply chain limitations follow — few certified suppliers exist locally. Procedural complexity confuses owners who lack clear information. Infrastructure costs demand separate kitchens and equipment.
Gender moderates these relationships. Female owners face structural barriers limiting their ability to act on perceived control. Male owners respond more strongly to social expectations as primary decision-makers.
The study offers recommendations. Create a central information hub. Develop common requirements across certifying bodies. Offer financial support through tax deductions and subsidies. Address supply chain gaps by encouraging local manufacturers. Target younger owners in training. Streamline certification through a centralised system.
Limitations exist. Iligan City does not represent all regions. The study examines intention, not behaviour. Other stakeholders were not included. Future research should replicate nationwide, explore alternative theories, and examine customer demand.
The findings offer lessons beyond the Philippines. When religious obligation is absent, economic incentive must lead. When awareness is high but capability is low, resources matter more than education. When attitude is positive but action stalls, preparedness and confidence decide.
For Muslim consumers seeking halal options and business owners wanting to serve them, the path forward requires more than goodwill. It requires information, investment, and institutional support.
A new study from Iligan City reveals why most food businesses want to go halal — but few actually do. The reasons are simpler than you might think: money, information, and the daily struggle to keep a small business alive.
The Halal Paradox: Demand Without Supply
The global halal food market is booming. Valued at roughly USD 2 trillion, it is expected to grow by 13.5% every year until 2030. Muslim consumers worldwide spent USD 1.17 trillion on halal food in 2019 alone, making it the second-largest sector after Islamic finance.
Meanwhile, the Philippines sits on the sidelines. Despite hosting Southeast Asia’s third-largest Muslim population — around 11 million people, or roughly 10% of Filipinos — the country lags far behind neighbours like Singapore, Malaysia, and Thailand in halal-certified products.
A 2025 study led by Kamille A. Buenafe and colleagues at MSU-Iligan Institute of Technology examines this gap. The research surveys 220 food service business owners in Iligan City, Mindanao, and interviews 12 of them in depth. What emerges is a portrait of business owners who see the opportunity but cannot reach it.
The study’s title asks the central question plainly: why does halal certification remain elusive?
A City at the Crossroads
Iligan City was chosen deliberately. Located in Mindanao, it hosts a population of 363,115, of whom 11.48% are Muslim — the largest minority in the city. The local government has actively pushed to expand halal-certified businesses, passing a comprehensive Halal Ordinance in 2024.
The city’s economy depends on heavy industry, agriculture, and food processing. Banana, coconut, corn, coffee, livestock, and poultry all flow through its markets. For food service businesses, the Muslim community represents a growing customer base.
Yet most food establishments remain uncertified. The study set out to understand why.
The Theory Behind the Question
The researchers anchored their work in the Theory of Planned Behavior (TPB), a widely used framework for predicting human action. According to TPB, behaviour flows from intention, which in turn is shaped by three factors: personal attitude, social pressure, and perceived control.
The study extended this model with four additional variables. Awareness captures what business owners know about halal certification requirements. Preparedness measures operational readiness — whether a business already segregates halal and non-halal products. Age and gender were added as moderating factors.
Religiosity and government support were deliberately excluded. Most Filipino food business owners are not Muslim, so religious obligation does not apply. Government assistance varies wildly across regions and could not be modelled consistently.
What the Numbers Say
The quantitative phase surveyed 220 business owners. The average age was 36.8 years, and the average business had operated for 4.84 years. Most respondents were aged 30 with just one year of operation. Women outnumbered men 139 to 81.
Business owners generally agreed that halal certification assures Muslim consumers of Islamic compliance, scoring 6.55 on an eight-point scale. They also somewhat agreed that customers distinguish between certified halal establishments and those merely offering no-pork dishes.
Social pressure told a different story. Owners slightly disagreed that family and friends expect them to become certified, scoring 4.02. Yet they slightly agreed that customers expect halal certification, scoring 5.23. The demand comes from the market, not from personal circles.
On perceived behavioural control, owners slightly agreed that certification is relatively quick and information is easy to find. Preparedness scored 5.65, suggesting moderate segregation practices already exist.
Awareness averaged 12.8 out of 18. Owners knew roughly two-thirds of certification requirements. Intention to apply scored only 5.04 — barely above neutral.
What Drives Intention to Seek Halal Certification
| Factor | Effect on Intention | Statistical Significance |
|---|---|---|
| Perceived behavioural control | Positive, strongest predictor | Significant (p = 0.001) |
| Preparedness | Positive | Significant (p = 0.003) |
| Subjective norms | Positive | Significant (p = 0.006) |
| Age | Negative | Significant (p = 0.021) |
| Awareness | Not direct | Significant only via age interaction |
| Attitude | Not significant | — |
| Years of operation | Not significant | — |
The Barriers Business Owners Face
| Barrier | Description | Frequency in Interviews |
|---|---|---|
| Financial constraints | High certification fees, renewal costs, expensive halal supplies | Recurring theme |
| Supply chain limits | Few halal-certified suppliers in Iligan; costly imports | 8 of 12 participants |
| Procedural complexity | Unclear steps, insufficient information, confusing requirements | 7 of 12 participants |
| Infrastructure costs | Need separate kitchens, air-conditioned storage, new equipment | Recurring theme |
| Awareness gaps | Owners unsure which improvements are required | Recurring theme |
What Actually Predicts Action
Three factors emerged as significant direct predictors of intention. Perceived behavioural control topped the list, with the strongest effect size. Business owners who believe they can navigate the process are far more likely to try.
Preparedness came second. Businesses that already segregate halal and non-halal products in storage and transport show markedly higher intention. This makes intuitive sense: owners who have already invested in operational changes have signalled commitment.
Subjective norms ranked third. Pressure from customers, family, and peers drives intention even when personal attitude does not. In a Muslim-minority context, market demand substitutes for religious obligation.
Age had a direct negative effect. Younger owners are more willing to pursue certification. Older owners, with established customer bases and traditional mindsets, see less incentive.
Attitude, surprisingly, showed no significant effect. Neither did years of operation.
The Moderating Role of Age and Gender
Age and gender shaped how other factors translated into intention.
Age negatively moderated the link between perceived behavioural control and intention. Younger owners convert confidence into action more readily. Older owners may feel capable but remain resistant to change.
Age positively moderated the link between awareness and intention. Older owners who understand halal certification are more motivated by that knowledge. Their experience gives them market insight younger owners lack.
Gender negatively moderated the control-intention relationship. Female owners face structural barriers — limited financing, societal expectations, family responsibilities — that prevent them from acting on perceived capability.
Gender positively moderated the norms-intention relationship. Male owners respond more strongly to social expectations. As primary decision-makers, they feel obligation to meet community needs.
Voices from the Field
The qualitative interviews brought these numbers to life. Twelve business owners shared their experiences, and their words reveal the gap between good intentions and hard realities.
“We have little knowledge about the process and the qualifications; that’s the main concern,” one owner said. “We have no idea how to proceed.”
Another described the financial strain: “If we pursue halal certification, there’s a fee, and it needs to be renewed. This is another challenge for a small business like us.”
Supply chains posed a recurring obstacle. “One of the biggest challenges we faced was finding a halal supplier,” one participant explained. “It’s really difficult to find one here in Iligan, and they’re too expensive.”
Yet customer demand kept the idea alive. “We noticed that most of our customers were Muslims, and they would ask, ‘Is this halal?’ That’s why we’re considering it.”
Some owners took proactive steps. One described renovating to meet requirements: “We have already started making improvements to our kitchen setup. We have a specific area that we air-conditioned, and we’re planning to do the same in another section.”
Why Attitude Does Not Matter Here
The study’s most striking finding is the irrelevance of attitude. Business owners generally view halal certification favourably. They believe it benefits Muslim customers. Yet this positive feeling does not translate into intention.
Researchers suggest that in weak halal ecosystems, capability trumps sentiment. When certification demands substantial resources and offers uncertain returns, positive attitude alone cannot overcome practical barriers. Awareness similarly fails to drive action without the means to act.
This contrasts sharply with Muslim-majority countries like Malaysia and Indonesia. There, religious obligation and government mandates create a different calculus. In the Philippines, economic opportunity must carry the weight.
The Preparedness Connection
Preparedness emerged as a theoretical contribution. Unlike perceived behavioural control, which reflects an owner’s self-confidence, preparedness measures the business’s actual operational readiness.
Businesses that already segregate halal and non-halal products, source certified ingredients, or maintain no-pork policies show higher intention. These are not abstract beliefs but concrete investments. They signal that the owner has moved beyond thinking and into doing.
The study recommends adding preparedness to the TPB framework when studying halal certification. It bridges the gap between psychological factors and actual behaviour.
What Government and Certifiers Should Do
The study offers practical recommendations for policymakers and halal certifying bodies.
First, create a central information hub. A government website should gather all learning resources on halal — simple explanations, benefits, and requirements for different industries. Social media links would speed dissemination.
Second, develop a common list of requirements across certifying bodies. Owners currently face confusion because different bodies have different procedures.
Third, offer financial support. Tax deductions, certification fee subsidies, or loans for halal-compliant upgrades would ease the burden on small businesses. Local governments and agencies like DTI and DOST could assist with kitchen layouts, workforce training, and supplier sourcing.
Fourth, address the supply chain. Local manufacturers should be encouraged to seek halal certification, and grocery stores should carry their products. Imported items should be made accessible and affordable.
Fifth, target younger business owners in training campaigns. Their flexibility and openness make them ideal early adopters.
Sixth, streamline the certification system. A centralised, uniform process aligned with international standards would reduce complexity. An online one-stop platform could handle applications.
The Road Ahead
The study acknowledges limitations. Iligan City, despite its large Muslim population and proactive local government, does not represent all Philippine regions. The research focused on intention, not actual behaviour. Other stakeholders — customers, certifiers, policymakers — were not examined.
Future research should replicate the study nationwide. Alternative theories like Behavioral Reasoning Theory could explore reasons for and against certification. Longitudinal studies could track business performance before and after certification.
Most importantly, researchers should examine demand from Muslim Filipino customers. Some business owners claimed Muslim patrons do not actively seek certified establishments. If true, this perception shapes the entire calculus.
Why This Matters Beyond the Philippines
The halal certification gap is not unique to the Philippines. Muslim-minority countries everywhere face similar challenges. The study’s findings offer lessons for any context where demand exists but supply lags.
When religious obligation is absent, economic incentive must lead. When awareness is high but capability is low, resources matter more than education. When attitude is positive but action is stalled, preparedness and confidence become the deciding factors.
For the millions of Muslim consumers seeking halal options, and the thousands of business owners who want to serve them, the path forward requires more than goodwill. It requires information, investment, and institutional support.
The demand is there. The intention flickers. What remains is the hard work of making certification achievable for the small businesses that form the backbone of the Philippine economy.
