The global Halal food market comprises a wide range of products that are prepared following Islamic principles. Halal foods include meat products, beverages, and other food items. Halal foods involve humane animal slaughter (zabiha), hygienic food handling and processing, and exclude products containing alcohol, pork and other non-hala substances. Notable segments of the halal food industry are dairy, bakery and snacks, ready meals, frozen and processed foods, and others. Rapid urbanization and rising disposable income of consumers have boosted the demand for convenience and processed foods in key Muslim markets globally.
The global Halal food market is estimated to be valued at US$ 992.19 Mn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growth of Halal tourism is propelling market expansion
The increasing number of Muslim tourists across the world is driving demand for certified halal foods at airports, hotels and restaurants globally. According to data from Mastercard–CrescentRating Global Muslim Travel Index, global halal tourism spending reached US$ 192 billion in 2019 and is forecast to grow at an annual rate of 10.6% between 2020 and 2024. Key Muslim traveler hotspots such as Southeast Asian nations dependent on halal tourism are witnessing increased investments by stakeholders to cater to this niche segment. The developing halal tourism industry is thus stimulating market growth.
Rising Muslim population strengthens market outlook
According to Pew Research Center projections, the global Muslim population is expected to exceed 3 billion by 2060. The growing Muslim demographic especially in Southeast Asia, the Middle East, and Africa creates robust opportunities for halal food producers. The continued population expansion will remain a demand stimulating factor over the coming years. Strict religious beliefs forbid consumption of forbidden items, thus promoting strong demand for halal certified foods.
Segment Analysis
The global halal food market is dominated by the meat, poultry and alternatives sub-segment. This sub-segment accounts for around 35% of the total halal food market share owing to high demand for shariah-compliant meat and poultry products among Muslim consumers globally. The growing global Muslim population and rising disposable income especially in Southeast Asian countries has led to strong growth in demand for packaged and processed halal food products in recent years, benefitting the meat, poultry and alternatives sub-segment.
Pest Analysis
Political: Many countries have formulated laws and guidelines to standardize and regulate the halal food industry in order to protect consumers and boost intra-regional trade. For instance, countries in Southeast Asia have harmonized halal standards and certification processes.
Economic: The global halal food market is expected to witness robust growth due to rising Muslim population, growing middle-class and urbanization in key markets such as Indonesia, Malaysia and Middle Eastern nations which will drive higher consumer spending on food products.
Social: Following a strictly halal diet is an important part of Islamic religious beliefs. With growing religiosity, young Muslim consumers are increasingly demanding certified halal food options when dining out or buying packaged food products. This presents extensive opportunities for halal food producers and retailers.
Technological: Food producers are investing in advanced production, packaging and tracing technologies to ensure integrity of the halal supply chain and meet stringent certification standards. Blockchain based traceability solutions are being explored to provide transparent tracking of halal ingredients.
Key Takeaways
The Global Halal Food Market Size is expected to witness high growth over the forecast period owing to robust demand from the vast and rapidly growing Muslim consumer base globally. The global Halal Food Market is estimated to be valued at US$ 992.19 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030.
The Southeast Asia region is expected to dominate the halal food landscape, aided by factors such as the large Muslim population, thriving food industries and standardized regulations which are driving its emergence as the global halal hub. Indonesia has emerged as the focal point for halal trade and investments with the world’s largest Muslim population and a thriving domestic food industry. It also serves as the supply base for other key Muslim markets. Meanwhile, Malaysia is at the forefront of halal certification and regulations and has developed as a halal trading gateway.
Key players
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. Cargill Inc. is one of the largest global suppliers and processors of halal food ingredients. Al Islami Foods and QL Resources Sdn Bhd are prominent Malaysian players focused on meat, dairy and confectionery products.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it