Economic Insights: Exploring Ramadan’s Influence on Food, Fashion, and Beauty Industries

The holy month of Ramadan brings a rich tapestry of cultural traditions and heightened economic activities. Beyond its spiritual significance, Ramadan observes dynamic shifts in consumer behavior, propelling certain industries to new heights of prosperity. During Ramadan, the rhythm of daily life transforms, ushering in a season of spiritual reflection, communal gatherings, and familial celebrations.

In this bustling landscape, three key industries emerge as focal points of economic activity: Food and Beverage, Clothing and Fashion, and Beauty and Personal Care. Each sector experiences a pronounced uptick in consumer spending, driven by unique cultural norms and market dynamics that define the Ramadan experience. Let’s delve into the thriving commerce of Ramadan, uncovering untapped potential and strategic opportunities for savvy entrepreneurs and marketers in those industries.

Food and Beverage

There’s a 30-100% surge in food expenditure compared to regular months. The focus on pre-dawn meals (Sahur) and post-dusk feasts (Iftar) meant for breaking fast attributed to the percentage spike. During Ramadan, people typically purchase specific food items such as dates, nuts, dried fruits, dairy products, and ingredients for larger meals. Business owners can capitalize on this trend by stocking up on these items in advance and tailoring their marketing campaigns to highlight special Ramadan offerings. Restaurants can extend hours, offer Ramadan-specific menus featuring traditional dishes, and create family-sized meal deals to cater to the feasting culture.

Clothing and Fashion

Nearly 79% of Malaysians planning to shop during Ramadan intend to purchase clothes and apparel, making it the peak season for the industry (YouGov, 2022). Ramadan emphasizes modesty in clothing, leading to a significant portion of revenue for Malaysian fashion brands coming from this period. With the rise of social media, businesses in the fashion industry can leverage platforms like TikTok and online shopping platforms such as Shopee and Lazada to boost sales through targeted ads and live-streaming sessions that showcase their products.

Beauty and Personal Care

The demand for beauty and personal care products is also high during Ramadan, complementing the clothing and fashion industry trends. Up to 71% of Malaysians plan to purchase health and beauty products specifically for Ramadan (Statista, 2022). However, it’s important for brand owners to align their offerings with the spiritual focus of Ramadan, emphasizing products that promote self-care and complement spiritual practices. This may include hydrating products for dry skin caused by fasting or unscented/unflavored items to respect the fasting process. By tailoring marketing strategies and product offerings to Muslim consumers’ specific needs and priorities during this holy month, businesses can tap into significant opportunities for growth.

In essence, Ramadan represents a pivotal time for economic activity, particularly in the Food and Beverage, Clothing and Fashion, and Beauty and Personal Care industries. By understanding and catering to the specific needs and preferences of consumers during this holy month, businesses can enhance sales and strengthen relationships with the Muslim community. Entrepreneurs and marketers need to seize these strategic opportunities and maximize the economic vibrancy of Ramadan.

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