Halal Food Market Trend

Global Halal Food Market size was USD 803.62 billion in 2023, and the market is projected to touch USD 1,104.62 billion by 2032, at a CAGR of 4.06% during the forecast period.

The halal food products are prepared strictly on the lines of rules from the Quran concerning the treatment of animals and the avoidance of alcohol and pork products. A growing demand for halal food has caused the explosive growth of the halal food market due to a growing number of Muslims and increasing awareness about halal products in the minds of non-Muslim consumers.

Now, the expansion of demand for halal food is not limited to traditional Muslim communities. It has become a broader market. The trend is highly visible through sectors like meat, dairy products, snacks, and ready-to-eat meals. Improvements in supply chain processes, globalization, and wider availability of the halal certification were cited as the main factors. Other countries are shelling out money to have their products halal certified to enter the profitable market and hence grow the economy.

Halal Food Report Scope and Segmentation.

Dynamic Insights

An important driver relates to growth in the Muslim population worldwide, projected to reach over 2 billion by 2030. The demographic shift will also create an enormous and growing demand for halal food products not only among predominantly Muslim countries but also in regions that have significant Muslim communities. In addition, expanding consumer awareness of halal food among non-Muslim consumers promoted by health consciousness and ethical sourcing practices is changing the market beyond those traditional boundaries.

On the other hand, the absence of a standardized halal certification process acts as an impediment to market growth. Consumers get confused easily while trying to locate genuinely halal products, with resultant skepticism. Competition from multiple food manufacturers also tends to affect profit margins due to price sensitivity. However, the market has scope for development with increasing investment in logistics and channels of distribution for halal as well as improvements in technology related to traceability and quality checks. Driving forces and challenges merge into a dynamic environment where businesses need to be flexible and innovative to address the changing needs of consumers in the halal food sector.

Drivers Insights

• Growing Muslim Population

The demand for halal food will come from the increasing number of Muslims globally. Indeed, it is estimated that there are at present more than 1.9 billion Muslims, a number that is expected to increase to 2.2 billion by 2030. Therefore, it means that with this increase in population, the need for items that would have received halal certification would increase, not just in Muslim-majority countries but also in Muslim-minority countries in Europe and North America. This growing demand has made food manufacturers and retailers more flexible in their products, thus expanding the product line and availability and accessibility in the marketplace. The cultural and sociological effects toward acceptance by non-Muslim consumers, attracted to its health benefit and ethical sourcing, will further fuel the growth of this market.

• Increased Health Consciousness

The trend towards healthier eating among consumers has significantly influenced the halal food market. Most consumers consider the products fresher and of better quality than their counterparts because, during the slaughtering process, the emphasis of halal is on animal welfare and hygiene. The stance on health and ethical consumption will strike a chord amongst a wider audience than just the Muslim community. Consumers demand more transparency in sourcing and preparation when it comes to their food, so halal certifications serve as a quality assurance that also ensures compliance with health standards. This trend then boosts demand for halal products and challenges companies to upgrade their offerings by adding organic and natural ingredients, which would conform to consumer preferences that are health-conscious.

Restraints Insights

• Lack of Standardization in Halal Certification

The most significant challenge for the halal food market is the lack of a uniform standard of recognition by any authority that provides halal certification. Thus, being a transnational trade, different countries and organizations have different criteria to qualify something as halal. It, therefore, leads to confusion among consumers. Such a lack of consistency can very well be a reason for decreased consumer trust and hesitation to buy its products. This convoluted landscape for certification can be stressing for producers with regard to extensive documentation and the need for adhering to various regulations, thereby raising operational costs and complicating supply chains. Overall, many consumers will tend to prefer non-halal products in the light of uncertainty as regards the authenticity of halal claims.

• Cultural and Religious Misunderstandings

Cultural perceptions and misunderstandings about halal practices can also serve as a restraint on market growth. In regions where halal food is less understood, misconceptions may deter consumers from trying halal products. This challenge is particularly prominent in non-Muslim-majority countries, where education and awareness about halal practices are limited. Efforts to address these misunderstandings require substantial marketing and educational initiatives, which can be resource-intensive for companies. Additionally, negative media portrayals or stereotypes about halal practices can further alienate potential customers, making it essential for market players to engage in effective communication and awareness campaigns.

Opportunities Insights

• Innovation and Product Development

In the product development area of the halal food industry, further innovation opportunities exist. With changing consumer preferences, demand has been increasing for diverse halal offerings in convenience foods, ready-to-eat meals, organic options, and many more. Companies can invest in research and development for new halal products responding to changing demands and are in line with requirements related to meeting halal standards. The use of better traceability, transparency, and quality control in the use of technology can further enhance the confidence of consumers toward halal products. This innovation increases brand loyalty among existing customers but attracts new customers seeking high-quality food choices with ethical considerations.

Segment Analysis

• By Product Type

Within the halal food market, this type of product segmentation encompasses a lot of offerings: meat and poultry, dairy, packaged foods, snacks, beverages, confectionery, cereals, and frozen. Meat and poultry products are likely to feature more prominently, as they represent the heart of the halal diet, and, for consumers, such products also have to be sourced ethically and carried the right certification for customers. Some of the most important items are dairy products: such as milk, yogurt, and cheese, containing nutritional value while meeting their own halal requirements. Convenience and shelf stability had made packaged foods the number one choice among busy consumers. Snacks and confectionery have now become an essential indulgence for the younger generation looking at halal-certified treats. Beverages, ranging from soft drinks to flavored water, are also rather popular, and more and more consumers are seeking halal-compliant beverages. Cereals, along with frozen foods, present easy meal solutions fit for families, as well as singles.

• By Distribution Channel

The distribution channel segmentation points toward the various pathways through which halal products finally reach the consumers. It is at supermarkets and hypermarkets that many of these are being sold, offering one-stop shopping experience to the consumers looking for lots of different things under the head of halal. Specialized stores catering to the niche markets have carefully chosen selections of halal products, which emphasize authenticity and quality. Rapid growth in online shopping has become the norm due to the trend of convenience brought about by e-commerce, which provides direct access and ordering of all things from one's home. The convenience stores increase market reach by fulfilling instant needs of consumers in having rapid access to all sorts of halal snacks and drinks. Direct sales through wholesalers and distributors have increased the markets' reach, especially for food service providers and catering services.

• By Certification

From a certification point of view, the halal food market falls into two categories. These categories include halal certified and non-halal certified. In cases where customers seek guarantee that products do not breach Islamic dietary laws, certification is of importance. Consumers are confident in products that they purchase if there are available bodies that provide reliable halal certification and ensure that the product will go through relevant treatments or handling. With rising awareness on halal principles, the demand for halal certified products is increasing among Muslim and non-Muslim consumers due to health consciousness and ethical sourcing. The non-halal certified segment exists since there exist consumers who would not look for halal products. However, with market dynamics showing more firms to be seeking certification as halal, this is likely to be driven by certified products to emphasize this broader shift into ethical consumption and transparency within food sources.

• By End User

In the target end-user category, there are retail customers, food service operators, catering services, and institutional buyers. The largest group remains retail customers comprises of individuals and families looking for halal products in quest of everyday consumption. The increasing demand by such consumers adds to further market growth. Food service providers, restaurants, and cafes have been increasing the offerings of halal foods on their menus to meet different clientele and meet their dietary demands. Catering services play a huge role by offering halal food services to events and other special functions or occasions. Dietary restrictions will be provided accordingly. Institutional buyers, such as schools, hospitals, and corporate cafeterias, are getting into the importance of halal meals in embracing different populations.

Regional Analysis

The MENA region is indeed a prime market with the majority of the population as Muslims and deep-rooted traditions of halal. This region has a high demand for halal products-from meat and poultry to snacks and beverages. Countries like Saudi Arabia, UAE, and Egypt are on the forefront in terms of consumption and are supplemented by both local production and imports. It is also the biggest marketplace for halal certification in order to get to the world market.

Countries like Indonesia, Malaysia, and Pakistan are of great importance in the Asian halal food market. Indonesia is the world's largest Muslim majority country. Countries are striving hard to strengthen their halal supply chains, expand their product lines, and meet both local and international demand. South Asia, particularly India and Bangladesh, holds much promise with a large population of Muslims. Areas like Europe and North America are gaining an increased interest of the non-Muslim consumer in halal products, which is primarily attributed to health awareness along with ethical sourcing trends. The halal market in these regions is growing through different distribution channels such as supermarkets, specialty stores, as well as online platforms.

Competitive Landscape

The two giant players in the market are Nestlé, Tyson Foods, and Unilever with vast product portfolios and distribution networks. The huge players in the industry apply their power to confirm that their products deliver the halal standard requirements. It also engages advertisement and promotion, particularly about its halal productions. Innovation and new product development is increasingly targeted at such companies as people change their patterns of requirements in such massive ways, shifting towards healthier and organic halal products.

Emerging brands and local players also take a big share in the competitive arena, especially in the larger Muslim countries: the Middle East, Southeast Asia, and South Asia. Companies are significantly focused on authenticity and cultural relevance in product offers toward catering to these increasing demands for traditional halal foods. Many more local brands also self-segment to niche areas, such as organic halal products, ready-to-eat meals, or even halal-certified snack foods, so each by definition and differentiation stands apart from bigger corporations. The rise of e-commerce has made the competition even tighter, allowing established players not only to counter but also to play new entrants against one another, head to head in competition for the consumer. With the increase in market needs, manufacturers, distributors, and retailers collaborate with each other to improve supply chain efficiency, knowing that a continuous flow of halal products will ensure the steady meeting of the demand of the consumer.

List of Key Players:

• Al Islami Foods Co.
• Kawan Foods Berhad
• Cargill, Inc.
• Janan Meat Ltd
• BRF S.A.
• Tahira Foods Ltd
• Saffron Road
• DagangHalal Group
• Prima Agri-Products Sdn Bhd
• QL Foods Sdn Bhd
• Nestle S.A.

Recent Developments:

• Sept 2023, Halal Products Development Company (HPDC), a wholly owned subsidiary of Saudi Arabia's Public Investment Fund, has entered into a strategic partnership with US-based Eat Just Inc., a leader in innovative food products. Under this collaboration, HPDC will offer advisory services to assist Eat Just in obtaining the necessary "Halal" certification and approvals to operate as a halal food distributor. The partnership will also utilize HPDC's expertise to help Eat Just formulate a sustainable strategy for entering the halal market, facilitating the export of its products to both local and regional markets.

Global Halal Food Report Segmentation:

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global Halal Food size and forecast: To identify and estimate the market size for global Halal Food market segmented By Product Type, By Distribution Channel, By Certification, By End User, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
• Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Halal Food
• Market Influencing Factors: To find out the factors which are affecting the market of global Halal Food among consumers.
• Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.