The halal food market comprises a wide range of products including fresh and processed meat and poultry, fresh fruits and vegetables, beverages, processed food and beverages, and cereals and grains. Growing Muslim population across the world paired with preferences surrounding religious beliefs and values is driving the demand for halal certified food and beverages. The global halal food industry practices standards relating to the humane treatment of animals during slaughter, proper handling and storage of foods by employees, and ensuring herbal and harmful ingredients are not used in processing.
The global halal food market size 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. 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 with rising awareness regarding halal certification and proper processing of foods has been fueling the demand over the past decade. Organizations like the World Halal Food Council and Islamic Food and Nutrition Council of America have played pivotal roles in drafting global regulations and standards relating to halal food production and distribution, aiding market expansion.
Growing demand has prompted global players like Cargill and Nestle to expand their production facilities across Asia Pacific and Middle Eastern countries with large Muslim populations like Indonesia, Malaysia, Pakistan and Saudi Arabia. National and local halal certification bodies have also emerged in countries like Malaysia, Pakistan, Indonesia, Europe and the United States to facilitate trade and consumer trust. The market is observing rapid globalization with investments and partnerships between international organizations and SMEs.
Market drivers
The rising Muslim population globally is one of the major market drivers for the Halal Food Market Demand. The Muslim population stood at around 1.9 billion in 2023 and is expected to grow to over 2.2 billion by 2030, predominantly in Asia Pacific and Middle Eastern countries. stricter religious beliefs and cultural practices around food and nutrition are propelling the demand for certified halal products. Increasing disposable incomes coupled with growing health and wellness trends are also fueling the uptake of processed halal foods and beverages.
The global Halal Food market is facing challenges due to ongoing geopolitical tensions and conflicts in various regions. The ongoing Russia-Ukraine war has disrupted global supply chains and export of raw materials from the black sea region which is a major supplier. This has increased prices of various agricultural commodities and packaging materials used in Halal food production. Rising energy prices due to the war is also putting upward pressure on transportation and production costs. At the same time, conflicts and political instability in the Middle East region is hampering the growth of Halal food production and exports from several Gulf countries. The tense relations between various Islamic nations and non-Muslim countries is also creating trade barriers and restricting the growth of Halal certified food trade globally. Looking ahead, the Halal Food industry will need to focus on diversifying sourcing, shifting to alternative low cost regions for production and exploring new export markets in Asia, Africa and Latin America to mitigate risks from geopolitical uncertainties in the coming years.
In terms of regions, the Middle East and North Africa (MENA) region accounts for the largest share of the global Halal Food market in terms of value. This is because of the large Muslim population in this region which forms the core demand base. Within MENA, GCC countries such as Saudi Arabia and UAE are the major markets. However, the fastest growing regional market for Halal Food is Southeast Asia. Countries like Indonesia, Malaysia, Brunei have large and rapidly growing Muslim populations. There is also increasing acceptance of Halal food and certification across other non-Muslim countries in the region like Singapore, Thailand and Vietnam catering to Muslim travelers and expatriates. This makes the ASEAN region an attractive high growth emerging market for the Halal Food industry.
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