by The Halal Food Market is estimated to be valued at US$ 992.19 Mn or in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Halal food refers to foods that are in accordance with Islamic law known as Shariah. Halal foods are permitted for consumption according to the Islamic dietary guidelines. Halal foods include meat, poultry, fish, and vegetables. Halal food products are witnessing high demand among the Muslim population worldwide due to the rising awareness regarding Islamic dietary laws.
Market Key Trends:
One of the major trends driving the growth of the Halal Food Market Size is the growing urbanization and rising disposable income levels among Muslim populations across the globe. According to the State of the Global Islamic Economy Report 2018/19, Muslim consumers spent approximately US$ 1.8 trillion on food and lifestyle products in 2018. This spending is projected to reach US$ 3.2 trillion by 2023, thereby indicating lucrative opportunities for halal food manufacturers. Moreover, increasing influence of social media and online retailing platforms is leading to growing awareness among Muslim populations regarding authentic halal food products and halal certification, thus fueling the demand.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as capital investment and compliance with stringent regulations pose barriers. However, growing demand provides incentives to new firms.
Bargaining power of buyers: The bargaining power of buyers is high. Large retail chains negotiate for lower prices and better quality products. Increased awareness empower buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of raw materials like chicken, beef etc face less threat due to niche demand for halal products.
Threat of new substitutes: The threat of new substitutes is low as halal food addresses religious beliefs limiting scope of substitutes.
Competitive rivalry: is high due to presence of many international players.
SWOT Analysis
Strength: High growth prospects due to rising Muslim population worldwide and increased awareness. Strong religious appeal leading to brand loyalty.
Weakness: Higher compliance costs compared to conventional food. Lack of uniform global standards leads to inconsistencies.
Opportunity: Untapped rural markets in developing nations present scope for expansion. Growing millennial preference for healthy and ethical options.
Threats: Protectionist policies restricting trade. Negative publicity from mislabeling undermining trust in brands.
Key Takeaways
The global halal food market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing religious observance and rising Muslim population globally. The market size for 2023 is estimated to be US$ 992.19 Mn.
The Asia Pacific region dominates the global halal food market with over 40% share due to large Muslim population in countries like Indonesia, Malaysia, Pakistan etc. Rapid urbanization and growing middle class fuel demand for processed and packaged halal food in the region.
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. Players adopt strategies like capacity expansions, partnerships with certification bodies and product innovation focused on health and nutrition to strengthen market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
