by Halal food refers to food items and beverages prepared and manufactured according to Islamic dietary guidelines. This includes meat processed from cattle, goat, lamb, and chicken that are slaughtered using Islamic techniques. Halal foods are free from any components considered as haram or forbidden from consumption like pork, alcohol, and ingredients containing animal by-products. The growing Muslim population across the world coupled with rising influence of Islamic dietary restrictions is augmenting the demand for halal certified food products. Muslims constituted approximately 23.2% of the global population in 2018 and this percentage is expected to grow further in the coming years. Rising income levels and rapid urbanization in Muslim majority regions are encouraging the adoption of packaged and ready-to-eat halal foods.
The global Halal Food Market is estimated to be valued at US$ 992.19 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising demand for packaged halal convenience food is one of the major trends witnessed in the global halal food market. Consumers today seek food products that are easy to prepare and consume on-the-go due to their increasingly busy lifestyle. Manufacturers are innovating and introducing various packaged halal food products like frozen halal meals, snacks, desserts to cater to this demand. The packaged segment in the global halal food market accounted for a value of US$ xx Mn in 2019. Another major trend is the increasing focus of halal food manufacturers on obtaining international halal certifications to boost exports and expand global footprint. This helps them target consumers in non-Muslim countries as well by assuring Islamic dietary compliance through credible third-party certification. To illustrate, Malaysia’s halal food and beverage exports have grown exponentially since the sector adopted global halal standards and certifications over the past decade.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the halal food industry requires large capital investments and compliance with various certification and regulations.
Bargaining power of buyers: The bargaining power of buyers is high given the fragmented nature of the industry with large number of buyers and suppliers. Buyers can negotiate for lower prices and switch between suppliers easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key inputs such as raw materials are commoditized and available from numerous local and global suppliers.
Threat of new substitutes: The threat of new substitutes is low as halal food does not have many substitutes and mainly cater to the religious requirements of consumers.
Competitive rivalry: The competitive rivalry is high given the presence of numerous local and multinational brands competing for market share. Players differentiate through variety of products, certification, quality, and marketing.
Key Takeaways
The Global Halal Food Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global Halal Food Market is estimated to be valued at US$ 992.19 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030.
Regional analysis comprises- The Middle East region currently dominates the global halal food market led by countries like Turkey, Saudi Arabia and UAE. However, South East Asian countries like Malaysia and Indonesia are expected to witness fastest growth in demand for halal certified food owing to their large Muslim population base.
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. is one of the largest players with strong global presence. Al Islami Foods and QL Resources Sdn Bhd dominates the Malaysia market while Haoyue Group has majority share in China. BRF S.A. is a leading Brazilian halal player exporting to many countries. Saffron road focuses on the US and European markets with variety of halal food products.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
