Halal Food Market Size, Share, Growth, and Industry Analysis, By Type (Fresh Products, Frozen Salty Products, Processed Products and Others), Regional Insights, and Forecast To 2032

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HALAL FOOD MARKET REPORT OVERVIEW

global halal food market size was USD 1.47 billion in 2023 and market is projected to touch USD 2.15 billion by 2032 at CAGR 4.30% during the forecast period.

Halal, derived from the Arabic term signifying "permitted," primarily refers to food that adheres to Islamic guidelines found in the Quran. It extends beyond dietary boundaries, constituting a crucial element in a comprehensive industry that emphasizes Muslims consuming not only permissible but also wholesome products, encapsulated by the principle of "halalan toyibban." This principle extends beyond religious boundaries, resonating with non-Muslim consumers as a symbol of ethical consumerism. The industry's expanded scope includes pharmaceuticals, cosmetics, health products, and various service sectors, underscoring the undeniable impact of the halal market. Its influence extends far beyond the realm of food, permeating logistics, marketing, media, packaging, branding, and finance.

Halal dietary principles centre on components such as Zabihah-compliant halal meat, emphasizing adherence to Islamic slaughtering laws. Pork stands as a clear non-halal example, accentuating stringent prohibitions. Foods categorized as Haram, which include pork derivatives, inadequately slaughtered meat, and alcohol, are expressly forbidden. The concept of Tayyib underscores the dual commitment of halal food to permissibility and wholesomeness. Halal certification is integral, formally recognizing alignment with Islamic dietary laws in production processes. This certification acts as a reliable indicator for Muslim consumers, ensuring adherence transcends mere restrictions to encompass ethical considerations in animal treatment and slaughter methods.

COVID-19 Impact: Pandemic disruptions reshaped the market challenging the resilience and adaptability

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The halal food market faced significant disruptions in its supply chain due to the swift spread of the pandemic. Prominent manufacturers encountered challenges such as a diminished workforce and disturbances in the import-export processes specific to halal food. These disruptions had a pronounced impact on both consumption patterns and sales capabilities within the halal food sector. The pandemic-induced constraints, particularly in labour availability and international trade logistics, posed considerable hurdles for key players in the industry, influencing their operational efficiency and overall market dynamics.

LATEST TRENDS

"Technological advancements in the market are driving the market"

Technological progress in the halal food sector has spurred the development of increasingly efficient and inventive products, contributing significantly to market expansion. These advancements signify a transformative phase in the industry, with innovations influencing various aspects of production, processing, and distribution. The integration of cutting-edge technologies has not only enhanced the overall efficiency of halal food processes but has also led to the creation of novel products that meet diverse consumer demands. This includes improvements in food safety, traceability, and quality control, ensuring compliance with halal standards. The adoption of state-of-the-art machinery and digital solutions has streamlined manufacturing, resulting in a more sustainable and competitive halal food market. Overall, technological advancements serve as a driving force, fostering innovation and elevating the industry's capabilities to meet the evolving needs of consumers worldwide.

HALAL FOOD MARKET SEGMENTATION

• By Type

Based on type the global market can be categorized into Fresh Products, Frozen Salty Products, Processed Products and Others.

Fresh Products: Fresh products encompass fruits, vegetables, and meat that undergo no processing or preservation. These items appeal to consumers favouring natural and organic food choices, with the popularity of fresh Halal products driven by an increasing preference for wholesome options.

Frozen Salty Products: This category involves frozen meat, seafood, and other salty snacks, catering to consumers seeking convenience and longer shelf life. Anticipated to grow significantly, the frozen salty products segment responds to the rising demand for frozen food items.

Processed Products: Processed products, comprising canned food, snacks, and other packaged items, are favoured by consumers desiring ready-to-eat options. The processed products segment is projected to experience substantial growth, driven by the increasing demand for convenient food products.

Others: The "Others" category includes Halal supplements, drinks, and miscellaneous food items not covered above. The demand for Halal supplements and drinks is on the rise, reflecting a growing health consciousness among consumers. The Halal food market continues to expand, encompassing a diverse array of products, including cosmetics and personal care items.

• By Application

Based on application the global market can be categorized into Restaurant, Hotel, Home and Others.

Restaurant: Restaurants play a pivotal role in the halal food market, meeting the increasing demand fueled by a growing Muslim population and a preference for halal-certified establishments. Beyond Muslim-majority nations, non-Muslim-majority countries witness the popularity of halal restaurants, driven by religious and ethical considerations. The sector anticipates steady growth globally, with diverse halal options, including traditional and fusion cuisines, contributing to market expansion.

Hotel: Hotels play a crucial role in the halal food market, meeting the dietary needs of Muslim travellers and locals. With halal options across luxury, mid-scale, and budget categories, the hotel industry is witnessing a rising trend of incorporating halal food to attract Muslim guests. This commitment contributes to the market's expansion in hotels, driven by a growing demand for authentic and high-quality halal dining experiences.

Home: Home consumption is a vital component of the halal food market, mirroring the dietary choices of Muslim households. This segment involves acquiring and preparing halal food items, spanning fresh, frozen, and processed options. Influenced by religious adherence and cultural traditions, the diverse culinary practices of Muslim households drive demand for a variety of halal products. The market's growth in the home category is further propelled by the increasing availability of halal-certified ingredients, meal kits, and convenient food options for home cooking.

Others: The "Others" category in the Halal food market encompasses diverse applications such as catering, food service, healthcare, and education. Catering services play a pivotal role in events, offering Halal options for varied consumer groups. The food service industry, including airlines and institutions, is expanding its Halal offerings. Healthcare facilities and educational institutions are increasingly adopting Halal food practices to meet the dietary preferences of Muslim patients, visitors, students, and staff, fostering demand in the "Others" category.

DRIVING FACTORS

"Emergence of potential markets in non-Muslim nations is poised to boost the market"

The rise of potential halal markets in non-Muslim nations stands as a pivotal driver in the evolution of the global halal food market growth. This trend underscores a growing appetite for halal products extending beyond conventional consumer demographics. The expansion into non-Muslim nations signifies a shift in preferences, where halal food is sought after not only by Muslim communities but also by a broader consumer base. This shift is indicative of an acknowledgement and acceptance of halal standards, driven by factors such as dietary choices, ethical considerations, and a desire for high-quality food products. As the halal food market continues to penetrate non-Muslim markets, it reflects a transformative phase, emphasizing the universal appeal and recognition of halal principles in the contemporary food landscape.

"Government initiatives and regulations aim to expand the market"

Governments in Muslim-majority nations are actively endorsing the expansion of the halal food market. Notably, these governments have launched comprehensive halal industry plans to establish their countries as hubs for halal products. Additionally, they have implemented mandatory regulations for halal labelling and certification. These initiatives have significantly influenced consumer preferences, leading to a notable rise in the demand for halal food. The proactive engagement of governments underscores their dedication to nurturing the growth of the halal food industry. This commitment extends to ensuring adherence to stringent standards and addressing the evolving needs of a growing consumer base. Such government-driven endeavours highlight the pivotal role of halal practices in the market and underscore a concerted effort to align with international halal standards.

RESTRAINING FACTORS

"Lack of clarity on halal ingredients hinders the market "

The growth of the halal market faces hindrances due to a lack of clarity regarding halal ingredients. Specifically, the ambiguity surrounding the determination of halal and non-halal ingredients contributes to confusion among both consumers and manufacturers. The absence of clear guidelines on the categorization of ingredients as halal or non-halal poses challenges, potentially leading to the inadvertent usage of non-halal components in halal food products. This lack of transparency creates a significant barrier to market expansion, as consumers seek assurance and adherence to halal principles. Manufacturers, too, encounter challenges in sourcing and utilizing ingredients that align with halal requirements. Addressing this issue by establishing clear and standardized criteria for halal ingredients is crucial for fostering consumer confidence, ensuring compliance, and fostering the sustained growth of the halal food market.

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HALAL FOOD MARKET REGIONAL INSIGHTS

"Asia Pacific region dominates the market due to its expanding Muslim population"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

The Asia Pacific region stands as a leading force in the global halal food market share, primarily driven by its substantial and expanding Muslim population. This demographic is notably concentrated in densely populated countries, fostering a steady and strong demand for halal-certified meat products. The prevalence of halal dietary preferences within this region solidifies its pivotal role in propelling the halal food market worldwide. The dominance of the Asia Pacific region is evident through its consistent and substantial demand for halal-certified products, with a particular emphasis on meat. These regional market dynamics underscore the significance of tailoring products to meet the preferences of a sizable Muslim population, thereby making a substantial contribution to the overall growth and influence of the halal food market.

KEY INDUSTRY PLAYERS

"Investments from key industry players are expected to drive innovation and fuel market expansion"

The key industry players are injecting significant capital into the sector, a strategic move poised to stimulate innovation and propel market growth. These substantial investments from key players are expected to serve as catalysts for transformative developments within the industry. By allocating financial resources, these industry leaders aim to foster advancements in product offerings, manufacturing processes, and distribution channels. The infusion of funds is anticipated to enhance research and development initiatives, resulting in cutting-edge solutions that meet evolving consumer demands. Additionally, these investments signal a commitment to market expansion, with a focus on achieving a competitive edge through technological advancements, improved operational efficiency, and a heightened capacity to meet the diverse needs of the consumer base. Overall, these financial commitments from key industry players play a pivotal role in steering the trajectory of the sector towards sustained innovation and growth.

LIST OF TOP HALAL FOOD COMPANIES

• Kawan Foods (Malaysia)
• QL Foods (Malaysia)
• Ramly Food Processing (Malaysia)
• Allanasons Pvt (India)
• China Haoyue Group (China)
• Arman Group (China)
• Hebei Kangyuan Islamic Food (China)
• Tangshan Falide Muslim Food (China)
• Namet Gida (Turkey)
• Banvit Meat and Poultry (Turkey)
• Al Islami Foods (U.A.E.)
• Cargill (U.S.)
• Midamar (U.S.)
• Nema Food Company (U.S.)
• BRF (Brazil)
• Nestle (Switzerland)
• Carrefour (France)
• Isla Delice (France)
• Casino (France)
• Tesco (U.K.)
• Halal-ash (U.K.)
• Unilever (U.K.)

INDUSTRIAL DEVELOPMENT

November 2023: Vietnamese businesses are capitalizing on opportunities in the halal food market, with companies such as Tonasia & Beverage Food exporting 4 tons of halal-certified dry vermicelli daily. CEO Dinh Phuc emphasized the importance of organic certification and adherence to both organic and halal standards. General Director Nguyen Duc Hien highlighted Tan Quang Minh's successful presence in the trillion-dollar halal market, stressing the need for cultural understanding and strategic marketing. The Food and Agriculture Organization predicts Muslim spending on halal food will reach USD 1,900 billion in 2024. Vietnam, strategically located for halal product markets, is actively exploring the halal market, supported by government initiatives, with Ho Chi Minh City identified as a key hub for halal industry development.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.