The halal food market has been
experiencing significant growth in recent years. Halal food refers to food that
is prepared and consumed according to Islamic dietary laws, which prohibit the
consumption of pork and alcohol. The market for halal food is driven by the
growing Muslim population, which is projected to reach 2.2 billion by 2030, as
well as the increasing awareness and demand for halal food among non-Muslim
consumers.
According to a report by Fortune
Business Insights, the global halal food and beverages market was valued at USD
1.96 trillion in 2020 and is expected to reach USD 3.27 trillion by 2028,
growing at a CAGR of 6.56% during the forecast period. The report also
highlights the key factors driving the growth of the halal food market, including
the increasing demand for halal-certified products, the rise of e-commerce and
online food delivery platforms, and the growing trend of vegan and vegetarian
halal food. The report also identifies the major players in the market,
including Nestle, Cargill, and Al Islami Foods.
The halal food market is not limited
to food products alone, but also includes halal-certified cosmetics,
pharmaceuticals, and financial services. The market is expected to continue
growing in the coming years, driven by the increasing Muslim population and the
growing demand for halal products among non-Muslim consumers.
Global Overview of Halal Food Market
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According to a report by Statista,
the global Muslim population is expected to reach 2.2 billion by 2030, which
will further boost the demand for halal food products. The report also states
that the global halal food market is expected to grow at a CAGR of 6.3% from
2021 to 2026.
The halal food market is not limited
to Muslim-majority countries but has also gained popularity in non-Muslim
countries, such as the United States, Canada, and the United Kingdom. The
demand for halal food products is not only driven by the Muslim population but
also by non-Muslims who perceive halal food as healthy and safe to consume.
The halal food market is broadly
classified into two categories: halal meat products and halal non-meat products.
Halal meat products include beef, lamb, chicken, and other meat products that
are slaughtered according to Islamic dietary laws. Halal non-meat products
include dairy products, confectionery, snacks, and beverages that do not
contain any haram (forbidden) ingredients.
The halal food market is dominated
by Asia-Pacific, followed by the Middle East and Africa. The Asia-Pacific
region is the largest market for halal food products, accounting for over 60%
of the global halal food market share. The Middle East and Africa are the
second-largest market for halal food products, accounting for over 20% of the
global halal food market share.
In conclusion, the global halal food
market is a rapidly growing industry that caters to the dietary requirements of
Muslims worldwide. The increasing demand for halal food products is driven by
an increase in consumer demand and a rising Muslim population globally. The
halal food market is not limited to Muslim-majority countries but has also
gained popularity in non-Muslim countries. The market is broadly classified
into two categories: halal meat products and halal non-meat products, and is
dominated by Asia-Pacific, followed by the Middle East and Africa.
Current Size of the Halal Food Market
The global halal food market has been growing steadily over the past few
years. According to a report by IMARC Group, the market size reached US$
2,221.3 Billion in 2022. Looking forward, the market is expected to reach US$
4,177.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8% during
2023-2028.
The halal food market is driven by an increase in consumer demand, followed
by a rising Muslim population globally. The Global Halal Food Market Report
2021-24 estimates global halal food trade (imports to OIC member countries) to
be valued at US$ 129 billion in 2019 and is projected to grow at 1.7% CAGR,
reaching US$ 140 billion by 2024.
The market share of halal food is also increasing. According to Statista,
the global halal market size was valued at 2 trillion USD in 2021 and is
expected to reach 3.2 trillion USD by 2026. In 2021, the market share of halal
food and beverages was estimated to be 18.8%, with the highest share in the
Asia-Pacific region.
Halal food claimed product launches increased globally by 19% from 2018 to
2020, from 16,936 products to 20,482. 63% of these are from Asia, followed by
the Middle-East and Africa (14% and 10%, respectively). For the eight
consecutive year, Malaysia continues to maintain its top position in the
overall Global Islamic Economy Indicator.
Overall, the halal food market is expected to continue to grow in the coming
years, driven by an increase in consumer demand and a rising Muslim population
globally.
Key Players in the Halal Food Market
The global halal food market is highly competitive, with many players
operating in the market. Some of the key players in the industry include Al
Islami Foods, Al-Falah Frozen Foods, BRF, DagangHalal Sdn. Bhd., Midamar Halal,
Prima Agri-Products, QL Foods Sdn. Bhd., Saffron Road, Nestle, and Kellogg's.
Al Islami Foods is a UAE-based company that specializes in halal food
products, including frozen meat, poultry, and seafood. The company has a strong
presence in the Middle East and North Africa (MENA) region, as well as in Asia
and Europe.
Al-Falah Frozen Foods is a Pakistan-based company that produces halal meat products, including beef, mutton, and chicken. The company has a global presence and exports its products to more than 20 countries.
DagangHalal Sdn. Bhd. is a Malaysian company that provides halal
certification services to food manufacturers and producers. The company also
operates an online marketplace for halal products, connecting buyers and
sellers from around the world.
Midamar Halal is an American company that produces halal meat products,
including beef, lamb, and chicken. The company has a strong presence in the
United States and exports its products to more than 30 countries.
Prima Agri-Products is a Singapore-based company that produces halal meat
products, including beef, lamb, and chicken. The company has a global presence
and exports its products to more than 50 countries.
QL Foods Sdn. Bhd. is a Malaysian company that produces halal meat products,
including chicken and duck. The company has a strong presence in Southeast Asia
and exports its products to more than 20 countries.
Saffron Road is an American company that produces halal frozen meals and
snacks, including chicken nuggets, samosas, and biryani. The company has a
strong presence in the United States and is expanding into other markets.
Nestle is a Swiss company that produces a wide range of halal food products,
including baby food, dairy products, and confectionery. The company has a
global presence and operates in more than 190 countries.
Regional Analysis of the Halal Food Market
The global halal food market is expected to experience significant growth in
the forecast period of 2023-2028. The market is segmented into different
regions, including Asia Pacific, Middle East and Africa, North America, Europe,
and Latin America.
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Asia Pacific
Asia Pacific is the largest market for halal food and is expected to
continue to dominate the market in the forecast period. The region has a large
Muslim population and a growing demand for halal food products. Countries such
as Indonesia, Malaysia, and Pakistan are major contributors to the growth of
the halal food market in the region.
Middle East and Africa
The Middle East and Africa region is another significant market for halal
food. The region has a large Muslim population, and the demand for halal food
products is high. Countries such as Saudi Arabia, UAE, and Egypt are major
contributors to the growth of the halal food market in the region.
North America
North America is a growing market for halal food due to the increasing
demand for halal food products among the Muslim population in the region. The
region has a growing Muslim population, and there is a growing awareness of
halal food among non-Muslims as well.
Europe
Europe is another growing market for halal food, with a growing Muslim
population and a growing demand for halal food products. Countries such as
France, Germany, and the UK are major contributors to the growth of the halal
food market in the region.
Latin America
Latin America is a relatively small market for halal food, but it is
expected to experience significant growth in the forecast period. The region
has a growing Muslim population and a growing demand for halal food products.
Countries such as Brazil and Argentina are major contributors to the growth of
the halal food market in the region.
Overall, the halal food market is expected to experience significant growth
in the forecast period, with Asia Pacific and the Middle East and Africa being
the largest markets for halal food.
Halal Certification Process
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Firstly, the manufacturer or supplier of the food product must apply for
halal certification from a recognized certification body. The certification
body will typically require the manufacturer to provide detailed information
about the ingredients used in the product, as well as information about the
manufacturing process.
Once the application has been received, the certification body will
typically conduct an audit of the manufacturing facility to ensure that all
halal requirements are being met. This may involve inspecting the manufacturing
process, reviewing ingredient lists, and checking that all equipment and
utensils used in the manufacturing process are free from contamination.
If the certification body is satisfied that the product meets all halal
requirements, it will issue a halal certificate. The certificate will typically
include information about the product, the manufacturer, and the certification
body, as well as any relevant halal logos or symbols.
It is important to note that halal certification is not a one-time process.
Manufacturers must renew their certification on a regular basis, typically
every year or two, to ensure that their products continue to meet halal
requirements.
Overall, the halal certification process is designed to ensure that food
products meet strict halal requirements and are suitable for consumption by
Muslims. While the process can be complex, it is an important step in ensuring
that halal food products are produced and marketed in a responsible and ethical
manner.
Market Trends and Growth Factors
The halal food market has been experiencing significant growth over the past
few years. According to a report by Future Market Insights, the global halal
food demand is projected to grow year-on-year (Y-o-Y) by 9.1% in 2022. The
market size reached USD 2,221.3 Billion in 2022, and it is anticipated to reach
USD 4,177.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8% during
2023-2028.
One of the primary factors driving the growth of the halal food market is
the increasing demand for halal food among both Muslims and non-Muslims. The
Muslim population is growing at a faster rate than the global population, and
the demand for halal food is increasing accordingly. Additionally, non-Muslims
are also consuming halal food due to its perceived health benefits and ethical
considerations.
Another factor contributing to the growth of the halal food market is the
advancement in healthy technologies incorporated in the production of halal
food. Consumers are becoming more health-conscious and are looking for food
products that are free from harmful chemicals and preservatives. Halal food
manufacturers are responding to this trend by incorporating healthy
technologies in their production processes.
Strict regulations implementations are also driving the growth of the halal
food market. The halal food industry is highly regulated, and the certification
process is rigorous. This ensures that the halal food products meet strict
standards of quality and safety. The increasing implementation of regulations
is further boosting the demand for halal food products.
In conclusion, the halal food market is projected to experience significant
growth in the coming years. The increasing demand for halal food among both
Muslims and non-Muslims, advancement in healthy technologies incorporated, and
strict regulations implementations are the factors driving growth in the
market.
Challenges and Restraints in the Halal Food Market
The halal food market is not without its challenges and restraints. Despite
the growth potential, the industry faces several obstacles that could hinder
its progress. Here are some of the primary challenges and restraints in the
halal food market:
Lack of Standardization
One of the significant challenges in the halal food market is the lack of
standardization. Different countries and regions have their own halal
certification bodies and standards, which can create confusion for consumers
and manufacturers. This lack of standardization can also lead to fraud and
misrepresentation, making it difficult for consumers to trust the halal food
products they purchase.
Limited Awareness
Another challenge in the halal food market is the limited awareness among
non-Muslim consumers. While the Muslim population is growing globally,
non-Muslim consumers may not be aware of the halal food market or the benefits
of halal food. This limited awareness can limit the potential growth of the
halal food market, as it may not attract a broader consumer base.
High Certification Costs
The certification process for halal food products can be expensive, which
can be a restraint for small and medium-sized enterprises (SMEs). The high
certification costs can also lead to higher prices for halal food products,
which may deter price-sensitive consumers from purchasing them.
Limited Supply Chain
The halal food market faces a limited supply chain, which can limit the
availability of halal food products. This limited supply chain can be
attributed to several factors, including the lack of standardization, limited
awareness, and high certification costs. As a result, halal food products may
not be readily available in some regions, limiting the growth potential of the
market.
In summary, the halal food market faces several challenges and restraints,
including the lack of standardization, limited awareness, high certification
costs, and a limited supply chain. Overcoming these challenges will be crucial
for the halal food market to reach its full potential and attract a broader
consumer base.
Future Projections of the Halal Food Market
The Halal food market is expected to continue its growth trajectory in the
coming years. According to a report by IMARC Group, the market is projected to
reach US$ 4,177.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8%
during 2023-2028. The report also highlights the key factors driving the growth
of the market, including the increasing demand for halal-certified food among
Muslim consumers, the rising Muslim population across the world, and the
growing awareness about halal food among non-Muslim consumers.
Another report by The Business Research Company predicts that the Halal food
market size will grow to $2,583.18 billion in 2027 at a CAGR of 14.5%. The
report notes that the increasing demand for halal-certified food products from
non-Muslim consumers, especially in Western countries, is expected to drive the
growth of the market in the coming years.
In addition, the Future Market Insights market analysis shows that global
halal food demand is projected to grow year-on-year (Y-o-Y) growth of 9.1% in
2022. The report states that the increasing number of halal-certified products
in the market, along with the growing number of halal-certifying agencies, is
expected to boost the growth of the market in the coming years.
Furthermore, the global Halal food market report by Expert Market Research
predicts that the market will rise at a CAGR of nearly 17% in the forecast
period of 2023-2028 to reach a value of about USD 3 trillion by 2026. The
report highlights that the increasing demand for halal food products among
non-Muslim consumers, especially in emerging economies, is expected to drive
the growth of the market in the coming years.
Overall, the Halal food market is expected to continue its growth trajectory
in the coming years, driven by the increasing demand for halal-certified food
products among Muslim and non-Muslim consumers, the rising Muslim population
across the world, and the growing awareness about halal food among non-Muslim
consumers.
Conclusion
The halal food market has been experiencing steady growth over the past few
years, and it is projected to continue growing in the coming years. The market
size is expected to reach USD 3 trillion by 2028, exhibiting a CAGR of 6.56%
during the forecast period (2021-2028) 1. The market is
driven by factors such as the increasing Muslim population, rising awareness
about halal food products, and the growing demand for convenience food
products.
The Asia Pacific region dominates the halal food market, accounting for the
largest market share. The region is expected to continue its dominance during
the forecast period. The Middle East and Africa region is also expected to
witness significant growth due to the increasing Muslim population and rising
demand for halal food products 2.
In terms of product type, the meat and alternatives segment is expected to
hold the largest market share during the forecast period. However, the processed
food and beverages segment is expected to witness the highest growth rate
during the forecast period due to the increasing demand for convenience food
products 3.
The halal food market is highly competitive, with a large number of players
operating in the market. The key players in the market include Nestle S.A.,
Kellogg Company, Al Islami Foods, and others. These players are focusing on
product innovation, expansion, and strategic partnerships to strengthen their
market position 4.
Overall, the halal food market is expected to continue growing due to the
increasing Muslim population, rising awareness about halal food products, and
the growing demand for convenience food products. The market is highly
competitive, and players are focusing on product innovation and expansion to
strengthen their market position.
Footnotes
1. https://www.fortunebusinessinsights.com/halal-food-and-beverages-market-106186
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2. https://www.futuremarketinsights.com/reports/halal-food-market
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3. https://www.imarcgroup.com/halal-food-market
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4. https://www.expertmarketresearch.com/reports/halal-food-market
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