June 17, 2024
Halal Food Market

Halal Food Market Poised for Growth with Global Rise in Muslim Population

The halal food market is growing rapidly owing to the increasing Muslim population worldwide and rising awareness regarding halal certified products. Halal food refers to food products prepared according to Islamic Sharia law. It mainly includes fresh and processed meat and poultry, halal dairy products, halal baked goods, and halal beverages. The growing demand for healthy and ethically sourced food products among Muslim consumers is driving the market.

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: 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.

Key opportunities: Rising awareness and interest in Halal Food Market Size certification provides huge opportunities for halal food manufacturers and certifiers globally. The growing young Muslim population opens up opportunities to produce trendy and innovative halal food products.

Technological advancements
: Advancements in food processing and packaging technologies help produce halal food at large scale efficiently while maintaining quality and hygiene standards. Technologies likeBlockchain are now being applied to enable traceability of halal products.

Market drivers

Growing Muslim population: Muslim population worldwide is growing at a faster rate and is expected to account for 26.4% of total world population by 2030. This growing demographic base drives the demand for halal certified food globally.

Improving economic conditions: With rising disposable incomes, Muslim consumers are spending more on food products that adhere to their religious beliefs and dietary preferences. This boosts the sales of halal certified food manufactured by major food companies.

Challenges in the Halal Food Market

The Halal Food Market faces many challenges in terms of regulations, certification and awareness. Standards and regulations for Halal foods vary widely in different regions of the world, making it challenging for food producers and exporters to meet all requirements. Ensuring foods are free from any non-Halal ingredients throughout the production process can be difficult. Lack of proper training for food handlers and potential for cross-contamination are also issues. Another major challenge is increasing awareness and education about Halal foods globally, especially in non-Muslim countries and regions.

SWOT Analysis

Strength: Growing Muslim population worldwide is increasing demand for certified Halal foods.

Weakness: Lack of universal standards and regulations leads to confusion and compliance issues for businesses.

Opportunity: Emerging markets like Asia Pacific and MEA regions offer significant potential for expansion.

Threat: Alternative ‘natural’ or ‘organic’ food trends may reduce focus on religious and cultural certification requirements.

Geographical Regions

The Middle East and Africa region currently accounts for the largest share of the global Halal food market in terms of value, estimated at over 35% in 2024. This is due to the large Muslim populations in countries like Saudi Arabia, UAE, Egypt, Turkey and Iran which have strong domestic demand. Another major regional market is Southeast Asia, mainly Indonesia, Malaysia and Singapore whereby Muslims compose between 10-60% of the population resulting in well-established Halal food industries and trade flows within ASEAN countries.

Fastest Growing Region

The fastest growing region for the Halal food market between 2024-2030 is projected to be Asia Pacific excluding the Middle East. Driven by rising incomes, urbanisation and growing Muslim populations, countries like India, Pakistan, Bangladesh, China and Japan are expected to see especially rapid gains. This is supported by their strategic locations along major global trade routes and an emerging class of Muslim consumers seeking certified Halal options. Production and consumption in Asia Pacific is estimated to almost double during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it