Factors Influencing Gen Z Consumers’ Preferences for Halal Industry Products and Services (A Case Study in Pulogadung Subdistrict, East Jakarta)

Abstract

Indonesia's halal industry continues to grow rapidly and holds the potential to become a key pillar of the national economy. Within this ecosystem, the younger generation plays a strategic role as a driver of innovation and job creation, while also promoting an inclusive and modern halal lifestyle. Millennials and Generation Z—generations of productive age brimming with an innovative spirit—make up 53.8% of Indonesia's population. The halal industry encompasses various sectors producing goods and services in accordance with Islamic Sharia principles; its primary focus is ensuring that raw materials, production processes, and presentation methods are “halal” (permissible) and “tayyib” (wholesome/good). Key sectors of the halal industry in Indonesia include food and beverage, Muslim fashion, cosmetics and personal care, pharmaceuticals and medicines, financial institutions, Muslim-friendly tourism (halal tourism), halal logistics and supply chains, as well as media and recreation. An article published by https://ideoworks.id notes that 39% of Gen Z consumers choose halal-certified products—a figure below 50%—which serves as the background for this study. This research employs a descriptive quantitative method involving a survey of 106 respondents (Gen Z) within Pulogadung district, East Jakarta.  The measurement of the halal lifestyle utilizes eight research indicators broken down into 20 questions regarding Gen Z consumer behaviour, administered via a questionnaire using a Guttman scale. Validity and reliability testing revealed that all 20 questions across the eight indicators were valid, as their Corrected Item-Total Correlation values ​​exceeded the r-table value (0.191). The research instrument demonstrated good reliability, indicated by a Cronbach's Alpha value of 0.783, making it suitable for use as a measurement tool. Descriptive analysis addressing the research problem indicates that, on average, 90% of respondents possess a high level of awareness regarding the consumption or use of goods and services with recognized halal status. In addition to factors such as price, quality, testimonials and ratings, viral status, religiosity, halal industry literacy, and Islamic branding, these elements are also considered by Gen Z when determining their preferences for halal industry products and services.