The halal food market comprises a wide range of productsincluding fresh and processed meat and poultry, fresh fruits and vegetables,beverages, processed food and beverages, and cereals and grains. Growing Muslimpopulation across the world paired with preferences surrounding religiousbeliefs and values is driving the demand for halal certified food andbeverages. The global halal food industry practices standards relating to thehumane treatment of animals during slaughter, proper handling and storage offoods by employees, and ensuring herbal and harmful ingredients are not used inprocessing.
The globalhalal food market size is estimated to be valued at US$1.43 billion in 2024 andis 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 IslamiFoods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., SaffronRoad Food. Cargill Inc, Kawan Food Berhad and BRF S.A. accounted for over 25%of the global revenue share in 2023. The growing Muslim population coupled withrising awareness regarding halal certification and proper processing of foodshas been fueling the demand over the past decade. Organizations like the WorldHalal Food Council and Islamic Food and Nutrition Council of America haveplayed pivotal roles in drafting global regulations and standards relating tohalal food production and distribution, aiding market expansion.
Growing demand has prompted global players like Cargill and Nestle to expandtheir production facilities across Asia Pacific and Middle Eastern countrieswith large Muslim populations like Indonesia, Malaysia, Pakistan and SaudiArabia. National and local halal certification bodies have also emerged incountries like Malaysia, Pakistan, Indonesia, Europe and the United States tofacilitate trade and consumer trust. The market is observing rapid globalizationwith investments and partnerships between international organizations and SMEs.
Market drivers
The rising Muslim population globally is one of the major market driversfor the HalalFood Market Demand. The Muslim population stood at around 1.9 billionin 2023 and is expected to grow to over 2.2 billion by 2030, predominantly inAsia Pacific and Middle Eastern countries. stricter religious beliefs andcultural practices around food and nutrition are propelling the demand forcertified halal products. Increasing disposable incomes coupled with growinghealth and wellness trends are also fueling the uptake of processed halal foodsand beverages.
The global Halal Food market is facing challenges due to ongoing geopoliticaltensions and conflicts in various regions. The ongoing Russia-Ukraine war hasdisrupted global supply chains and export of raw materials from the black searegion which is a major supplier. This has increased prices of variousagricultural commodities and packaging materials used in Halal food production.Rising energy prices due to the war is also putting upward pressure ontransportation and production costs. At the same time, conflicts and politicalinstability in the Middle East region is hampering the growth of Halal foodproduction and exports from several Gulf countries. The tense relations betweenvarious Islamic nations and non-Muslim countries is also creating tradebarriers and restricting the growth of Halal certified food trade globally.Looking ahead, the Halal Food industry will need to focus on diversifyingsourcing, shifting to alternative low cost regions for production and exploringnew export markets in Asia, Africa and Latin America to mitigate risks fromgeopolitical uncertainties in the coming years.
In terms of regions, the Middle East and North Africa (MENA) region accountsfor the largest share of the global Halal Food market in terms of value. Thisis because of the large Muslim population in this region which forms the coredemand base. Within MENA, GCC countries such as Saudi Arabia and UAE are themajor markets. However, the fastest growing regional market for Halal Food isSoutheast Asia. Countries like Indonesia, Malaysia, Brunei have large andrapidly growing Muslim populations. There is also increasing acceptance ofHalal food and certification across other non-Muslim countries in the regionlike Singapore, Thailand and Vietnam catering to Muslim travelers andexpatriates. This makes the ASEAN region an attractive high growth emergingmarket for the Halal Food industry.
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