February 22, 2024
Halal Food Market

Halal Food Market Set For Robust Growth Due To Rising Popularity Of Halal-Certified Products

The global halal food market has witnessed substantial growth over the past few years owing to increasing awareness among consumers regarding the nutritional benefits of halal products as well as the rapid expansion of the Muslim population worldwide. Halal foods refer to food products prepared according to Islamic law and are free from any components prohibited such as alcohol, pork, blood, and carnivorous animals. Key types of halal foods include meat & alternatives, beverages, dairy products, grain products, and others. Benefits such as being healthy, ethically sourced, and acceptable to both Muslim and non-Muslim consumers have increased demand for halal-certified food products globally.

The Global Halal Food Market is estimated to be valued at US$ 1143.01 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period from 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.
Key opportunities in the market include growing demand from non-Muslim consumers due to rising health consciousness, product innovation, and geographical expansion into new markets by key players. Rapid advancements in sustainability and traceability technologies are further enhancing quality control and transparency in the halal food supply chain.

Market Drivers

A primary driver for the halal food market is the exponential growth of the Muslim population globally. Muslim consumers strictly adhere to Islamic dietary guidelines, driving demand for certified halal ingredients. Additionally, growing health awareness among non-Muslim populations has bolstered demand for nutritious, ethically sourced halal meat and dairy alternatives. Stringent regulations and certification standards ensure trusted halal endorsement, promoting wider acceptance and consumption.

Current challenges in Halal Food Market

The Halal Food Market Demand  is witnessing high growth in the recent years. However, there are few challenges being faced by the industry players. Lack of standardized certifications and authenticity checks is one the major issues. Since the requirements and guidelines for Halal compliance differs across regions, it becomes difficult for manufacturers and exporters to ensure authenticity. This leads to distrust among consumers. Another challenge is lack of skilled workforce. As the demand is increasing at a rapid pace, players are facing shortages of people having good understanding of Halal requirements. Meeting consumer preferences is also a challenge, as tastes and preferences vary widely across regions and demographic segments. Educating consumers about Halal attributes further requires efforts from the industry stakeholders. Overall, standardization, talent development, and enhancing consumer connect can help address the key challenges being faced by the Halal food market.

SWOT Analysis

Strength: Growing global Muslim population and increasing preference for Halal certified products present huge opportunity. Weakness: Lack of universal certification system and guidelines for Halal compliance. Opportunity: Boost in exports to developing non-Muslim regions due to rising health awareness. Threats: High production and certification costs compared to non-Halal foods increase pricing pressures.

Geographical regions

The Middle East and African regions together hold around half of the global Halal food market share in terms of value. This is owing to the huge Muslim population base in these regions having high preference for Shariah-compliant foods. Southeast Asia is another major market, where Malaysia and Indonesia are among the leading producers and exporters of Halal foods.

Fastest growing region

Central Asia is expected to witness fastest growth in the Halal food market during the forecast period. The Muslim population in the Central Asian countries is rapidly adopting modern lifestyles and food consumption patterns. Along with growing incomes, this is boosting the demand for packaged and certified Halal foods in the region. Countries like Kazakhstan, Uzbekistan, Turkmenistan offer huge untapped opportunities for Halal food manufactures globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it