The Halal food market comprises various food products that comply with Islamic dietary laws known as Shariah. Products include meat and poultry, fruits and vegetables, dairy products, grains and cereals that are prepared and processed according to halal guidelines. The global halal food industry has witnessed significant growth over the past decade owing to increasing Muslim population worldwide and rising demand for certified halal products from non-Muslim consumers as well.
The Global Halal Food Market is estimated to be valued at US$ 1.43 billion in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Halal Food market are Cargill Inc., Al Islami Foods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., Saffron Road Food.
Growing demand: The global halal food market is driven by growing Muslim population worldwide coupled with rising disposable incomes especially in Southeast Asia and the Middle East regions. The increasing preference for lifestyle products among young consumers is further fueling the demand for packaged and processed halal food products.
Global expansion: Leading players in the halal food industry are focusing on global expansion strategies and penetrating untapped markets in Western countries through mergers and acququisitions. The growing trade relations between OIC and non-OIC countries are also presenting new opprtunities for halal food manufacturers and exporters.
Market Key Trends
The key trend gaining traction in the Global Halal Food Market Demand is the rising demand for clean label and organic halal food products. Consumers are increasingly preferring products with natural ingredients, less preservatives and additives. Food processors are responding to this demand by offering authentic and ethically sourced halal food products. The market focus is now shifting from certification to ethical sourcing and sustainability.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements to build processing facilities and distribution networks.
Bargaining power of buyers: Large retail buyers have significant bargaining power over suppliers due to the fragmented nature of halal suppliers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the absence of substitution and availability of alternative suppliers.
Threat of new substitutes: Potential substitutes have limited threat as they lack religious certification and clear differentiation.
Competitive rivalry: Intense competition exists among existing competitors to cater to increasing global demand for certified halal food products.
The geographical region where the halal food market is concentrated in terms of value is the Middle East, with countries such as Saudi Arabia, United Arab Emirates, and Qatar accounting for a major chunk of the global halal food spending. Rapid urbanization and rising population of young Muslims are fueling the demand growth in Southeast Asian countries like Indonesia, Malaysia and Singapore. Malaysia is the fastest growing regional market for halal food due to increasing export demand, strong domestic consumption, and supportive regulatory environment.