The Global Halal Food Market was valued at USD 974.4 Billion in 2022 and is projected to reach USD 1901.8 Billion by 2030, registering a CAGR of 8.67% for the forecast period 2023-2030.
Market Definition
Any food prepared in accordance with Islamic dietary laws is referred to as halal food. Halal-certified packaging supplies and tools are used for cleaning, storing, and packaging. It can also mean clean, legal products that are safer to consume, hygienic, and improve immunity and metabolism. Animals raised for halal meat are slaughtered in accordance with Islamic dietary law and are not given any of the commonly used antibiotics, hormones, or preservatives when producing meat. Consuming halal food can improve immune system, metabolism, and brain function, among other health benefits. This propels the halal food market's expansion. Businesses are adhering to halal-based preparation more and more since this certification offers levels of taste and quality. Halal food is preferred by both Muslim and non-Muslim diners because it offers assurances of food safety, reliability, and hygiene. However, the expansion of the halal food market is constrained by the disparate standards across nations regarding halal foods. In the next years, it is anticipated that the evaluation of consumer purchasing patterns and the ever-expanding distribution network will continue to propel the global market.
Market Size:
- 2022: USD 974.4 Billion
- 2030: USD 1901.8 Billion
- CAGR (2023-2030): 8.67%
Halal Food Market Dynamics
Drivers : Growing Number of Muslims and Changing Consumer Attitudes to Fuel Market Expansion
The world's fastest-growing religion is Islam, which has a positive impact on the demand for halal goods worldwide. According to recent data released by the Saudi Arabian government, Muslims make up 28.26% of the world's population. The global market is growing mainly because Muslims are becoming more and more aware of the need and necessity of eating only halal food. It is anticipated that the Muslim population's increasing levels of disposable income will contribute to the market's growth in the near future. The growth of the halal food market in recent years has been significantly influenced by consumer awareness. Non-Muslim consumers are increasingly choosing to use these products for safety and ethical reasons. Dietary practices, cooking methods, and shopping patterns have evolved in tandem with global changes in lifestyle. New food market subsectors that support the growth of the halal food and beverage market have emerged as a result of the growing demand for processed convenience foods and the growing awareness of the link between diet and health. For adherents of Islam, these dietary regulations hold particular importance, as they are viewed as a lifestyle encompassing customs, guidelines, and behaviors that dictate every facet of existence. Furthermore, eating is done for health maintenance rather than for survival in Islam. People are therefore more likely to eat halal meat because they believe it to be safer and purer than other options available, due to this factor fueling the growth of halal food market.
For instance, in according to U.S Embassy in Uzbekistan, The U.S. government estimates the total population at 31.1 million. According to the national government, the population as of September reached 35.8 million. According to U.S. government estimates, 88 percent of the population is Muslim, while the Ministry of Foreign Affairs estimates 96.3 percent of the population is Muslim.
Portfolio Expansion for Halal-Certified Products to Continue Driving Market Growth
Until recently, butchers were the primary vendors of halal food. The market has changed in the last few years as a result of the retail distribution channels' explosive growth, which has allowed supermarkets to carry these products. Producers and retailers have started to provide a large selection of halal food items in both developed and developing markets. These products aren't limited to meat and poultry; they also include confections, food items in cans and freezers, dairy and bakery products, organic food, non-alcoholic and non-dairy beverages, and herbal products. The demand for prepared convenience foods and packaged foods that follow Islamic dietary laws has increased due to the changing lifestyle and rising purchasing power of the Muslim population. Substitutes for products that typically contain non-halal (haram) ingredients like alcohol or pork gelatine make up another expanding market for halal food products. These goods, which formerly included chocolates, biscuits, and yogurt, are now being changed to be sold as halal, this factor driving the growth of halal food market.
For instance, in July 2022, according to Islamic Service of America, For Muslims living in the United States, which accounts for about 1.10% of the US population, finding Halal restaurants and Halal grocery stores can be challenging. Nevertheless, many cities across the country have large Muslim populations and, therefore, a large variety of Halal dining and shopping options.
Recent Developments
- April 2023
Delivery Hero, the world’s leading local delivery company, unveils bekal by food panda, a new service that guarantees end-to-end halal deliveries for customers in Malaysia. This is the only delivery fleet in the country to be certified halal by the Department of Islamic Development, and is the first halal-certified global brand within the Delivery Hero group.
- June 2023
n a milestone step, the Halal Products Development Company (HPDC) announced a strategic partnership with Tanmiah Food Company, one of the leading Saudi companies in the food manufacturing sector. A PIF company, HPDC’s landmark partnership is a forward-thinking measure to strengthen and localize the halal products industry in the Kingdom whilst supporting its development within the region as well as globally.
Restraint in the Halal Food Market
Halal Food Complex Regulatory Framework Impedes Market Growth:
The regulatory environment for the halal food industry is continuously changing on a global scale. This industry has complicated regulatory frameworks that differ between nations and regions. Muslim-minority nations and Muslim-majority nations adopt distinct strategies. One of the main obstacles to the market's expansion is the difficulty in creating a regulatory framework that would enable them to comply with regulations to the same extent as the mainstream food sectors. The absence of a dependable global structure to ensure the integrity of halal food makes it difficult for producers to penetrate both local and international markets. When purchasing packaged halal food, consumers face challenges due to unclear and opaque regulatory frameworks, as well as discrepancies in opinion and interpretation. Complying with halal standards can become more expensive for businesses if the regulations are unclear and complex. This may make it more challenging for companies, especially small and medium-sized ones (SMEs), to enter and compete in the halal food market. Consumers may become confused and unsure about the authenticity of halal products as a result of inconsistent halal certification standards. Customers may become less confident in the halal food industry as a result, and they may be less inclined to buy halal goods, this factor hinder the growth of halal food market.
For instance, in November 2023, Uttar Pradesh govt bans production, storage, sale of Halal certified food items with immediate effect, says it violates Food Safety and Standards Act.
Challenges : Several problems with the halal food industry
The government's strict laws and regulations will be the main obstacle to the halal food market's expansion. Elevated expenses linked to research and development capabilities will impede the market's expansion as well. Moreover, the lack of significant halal industries and changes in raw material prices will further impede the market's growth rate during the projection period. This report on the halal food market includes information on recent developments, trade laws, import-export policies, production analyses, value chain optimization, market share, and the effects of local and domestic market players. It also analyzes potential revenue opportunities and changes in market regulations, as well as market size, category market growth, application dominance and niches, product approvals, launches, and geographic expansions. For an analyst brief and additional information on the halal food market, get in touch with Data Bridge Market Research. Our team will assist you in making well-informed decisions that will lead to market expansion.
Opportunities : Southeast Asia's Islamic Population is Growing
A sizable proportion of Muslims reside in Indonesia, Malaysia, China, Thailand, Brunei, and other countries in the Asia-Pacific region. Since the majority of these economies have a majority of Muslims, they greatly contribute to the growth of the Islamic population in the region. This is further explained by the fact that Muslims in these economies have higher fertility rates than non-Muslims. For example, the average number of children born to Muslim women in China is 1.7, while the average for the entire country is 1.4. Furthermore, the high fertility rates of nations like Indonesia, Malaysia, and Myanmar are predicted to contribute significantly to the population growth in the years to come, making it twice as large as it is now. The increasing variety of halal food items is also being fueled by Southeast Asia's expanding Muslim population. Companies are creating novel and inventive halal products to satisfy the demands of this expanding market. Companies are spending money on R&D to produce better and newer halal products. Furthermore, local farmers and producers are finding new markets for their goods as a result of the increased demand for halal food, growing Islamic population in Southeast Asia is a significant an opportunity for halal food market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 974.4 Billion |
| Market Forecast in 2030 | USD 1901.8 Billion |
| Compound Annual Growth Rate (CAGR) | 8.67 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product, By Distribution Channel & By Region |
| By Product |
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| By Distribution Channel |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Halal Food Market
The Halal Food Market is segmented by Product, application, distribution channel and region.
By Product
The Meat & Alternatives segment held the largest market share in 2022
By Product is sub segmented into meat & alternatives, milk & milk products, fruits & vegetables, grain products, others. The meat & alternatives segment accounted for highest market share 51.60% in global halal food market for 2022. The rising purchasing power of consumers in these economies drives up demand for high-quality food products, particularly halal meats. This is particularly true in Muslim countries where eating meat is a common diet. Rising incomes and consumer trends toward healthier eating are expected to significantly contribute to the growth of the halal meat and alternatives in emerging economies like China, India, and Indonesia. In the upcoming years, the segment is expected to grow due to the growing demand for packaged processed meat products, which are seen as high-quality and hygienic products. The major producers are making investments in improved meat preservation technologies in response to the growing consumer demand for processed meat products that are both healthier and fresh.
On the other hand, the grains product segment has the significant market share over the forecast period, due to their nutritional advantages, cereals and grain products are becoming more and more popular among consumers. These goods consist of bread, pasta, rice, wheat, and cereal for breakfast. A February 2022 article in the Multidisciplinary Digital Publishing Institute (MDPI) stated that consumers worldwide consumed 16% of grain products with halal certification. Halal is becoming a popular marketing concept for many major brands in the industry. For instance, Kellogg's cereals are offered with the halal symbol on the packaging in an effort to attract more customers who, particularly in the Muslim community, favor health-conscious goods.
By Distribution Channel
The Hypermarket & Supermarket segment was the leading segment in 2022
By distribution channel, which is divided into hypermarket & supermarket, online. the hypermarket & supermarket segment accounted for largest share 70% in global halal food market in 2022. Supermarket channels are changing quickly in order to provide customers with a large selection of products and invest in newer technologies. In order to enhance the safety and caliber of the products they sell; these retail outlets are investing in meeting all legal requirements. Supermarkets and hypermarkets make it simple for customers to purchase halal meat products. Customers looking for processed meat, beef, chicken, lamb, and other halal meat cuts can find what they need at these stores. Supermarkets frequently provide a large selection to meet dietary and ethnic needs. Supermarkets and hypermarkets play a significant role in the halal meat supply chain because they allow customers to verify the freshness and quality of the meat.
Online segment is anticipated to register rapid growth in forecast period, The internet market for halal meat has expanded along with electronic commerce. Online orders for halal meat products are accepted from halal meat marketplaces and e-retailers. Families, working professionals, and people looking for certain halal meat cuts or processed goods are the target audience for this delivery route. The market segment frequently provides a large selection of products with doorstep delivery when customers place online orders. We also cater to customers who want specific halal meat options, such as rare meat. Online growth is being driven by consumer demands for streamlined shopping experiences and digital platforms.
Regional Analysis
Asia Pacific occupied the largest market share in 2022
Asia Pacific has the largest revenue market share 40% in 2022, Asia-Pacific is predicted to maintain its leading position in the global halal meat market throughout the forecast period, with the region having the largest value share. South Asian countries like Indonesia, India, Malaysia, Thailand, and China have a substantial Muslim population, which is a critical factor supporting the growth of the regional market. Furthermore, the regional halal meat market is anticipated to be driven by the demand for halal meat from non-Muslims throughout the forecast period, given the improvement in personal spending in the area. Additionally, because the halal sector boosts the economies of South Asian nations like Indonesia and Malaysia, these nations' governments are making large investments in the halal sector's growth.
On the other hand, Europe accounted for the significant share over the forecast period, The growing popularity of certified products in the area is making products more visible to customers, which will help the market grow even more. In 2020, O'Tacos, a fast-food chain based in France, declared that it would introduce French-style meat and vegetable wraps with halal certification to Italy. Additionally, roughly 500 Italian manufacturers, ranging in size from small to large, hold halal certification. The aforementioned trend and the introduction of recently certified products are expected to cause the market's growth trajectory to shift upward in the area.
List of the prominent players in the Halal Food Market:
- Nestlé S.A
- Cargill
- Incorporated
- Unilever
- American Halal Company, Inc.
- Al-Falah Halal Foods
- Prima Agri-Products
- One World Foods Inc.
- Midamar Corporation
- QL Foods
- Rosen's Diversified Inc.
Segmentation Analysis of the Halal Food Market
By Product
- Meat & Alternatives
- Milk & Milk Products
- Fruits & Vegetables
- Grain Products
- Others
- Hypermarket & Supermarket
- Departmental Stores
- Online
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Halal Food Market:
The rapid spread of COVID-19 has caused supply chain disruptions in the halal food and beverage industry, which has impacted market growth. There was a labor shortage among the top manufacturers in both Islamic and non-Islamic nations, which had a big impact on production capacity. The consumption of red meat declined substantially, which had an impact on halal meat as well. addition, the industry was badly impacted by the slowdown in retail product demand for items like pre-cooked and ready-to-eat meat products. However, the need for health-improving products to maintain immunity increased as concerns about immunity grew. There is a growing trend among consumers to choose safer, more nourishing, and healthful products. In the next years, this industry should see growth due to the positive evolution of consumer preferences towards safe and high-quality halal products. In the United States, meat sales at grocery stores decreased by more than 12% from the year prior to the pandemic, according to a July 2021 Bloomberg article. Nonetheless, a trend toward wholesome, high-quality food is anticipated to grow the market during the projected period.
