Global Halal Food Market Outlook to 2028

Global Halal Food Market Overview

The global halal food market is valued at USD 2467.8 billion. This market is primarily driven by the growing demand for halal-certified food products among Muslim populations worldwide. Increasing consumer awareness regarding halal standards, supported by stringent government regulations and certification processes, contributes to the growth of this market. Additionally, the rise in disposable income among Muslim consumers in developing regions further fuels the expansion of the halal food industry, with substantial growth in both traditional and modern retail channels.

Countries like Indonesia, Malaysia, and the Middle East nations, such as Saudi Arabia and the UAE, dominate the global halal food market. These regions have significant Muslim populations, and their governments have implemented robust halal certification frameworks. Moreover, strong demand in non- Muslim-majority countries such as the U.S., France, and the U.K. is driven by a growing awareness of halal foods quality, hygiene, and ethical benefits, making these countries key players in global halal trade.

Halal certification is regulated by a wide array of certification bodies across different regions, with over 400 recognized bodies globally. In 2024, countries like Malaysia, Indonesia, and Saudi Arabia continue to lead in establishing robust halal certification standards through government-backed agencies such as JAKIM (Malaysia) and MUI (Indonesia). These bodies ensure that halal standards are adhered to throughout the production process, from sourcing to packaging.

Global Halal Food Market Segmentation

By Product Type: The global halal food market is segmented by product type into Halal Meat, Halal Beverages, Halal Confectionery, Halal Dairy, and Halal Bakery & Snacks. In the product type category, halal meat commands the largest market share due to its essential status in many Muslim households and its cultural and religious significance. The demand for halal meat is particularly high in regions such as the Middle East and Southeast Asia, where consumers prioritize religiously compliant dietary options. Moreover, strict regulations around halal certification further enhance consumer trust in this category.

By Region: The halal food market is segmented by region into Middle East & North Africa (MENA), Asia- Pacific, Europe, North America, and Latin America. The MENA region holds the largest share of the market, driven by the predominance of Muslim populations and strict government regulations on halal certification. The regions well-established infrastructure for the production and distribution of halal foods further supports its dominance. Additionally, major exporters like Saudi Arabia and the UAE are pivotal in supplying halal food to global markets, particularly in Southeast Asia and Europe.

By Distribution Channel: The halal food market is segmented by distribution channel into Supermarkets/ Hypermarkets, Specialty Stores, Online Retail, Convenience Stores, and Foodservice. Supermarkets/ Hypermarkets dominate this segment with a significant market share due to their extensive product offerings, consumer convenience, and ease of access. Large retail chains such as Carrefour and Tesco have introduced halal-certified sections, offering a wide variety of halal food products, which cater to both Muslim and non- Muslim consumers. Furthermore, the widespread availability of halal products in these outlets has boosted overall sales.

Global Halal Food Market Competitive Landscape

The global halal food market is characterized by the presence of numerous key players, with both large multinational companies and regional manufacturers competing. Companies such as Nestl S.A., Cargill, Inc., BRF S.A., and others are leading in terms of production capacity, product range, and geographical presence. These companies have successfully tapped into the growing demand for halal food products by establishing strong distribution networks and adhering to strict halal certification standards.

Global Halal Food Industry Analysis

Growth Drivers

Increasing demand for halal-certified products: The growing Muslim population worldwide, now estimated at 1.9 billion as of 2024, has significantly increased the demand for halal-certified products. Countries like Indonesia and Pakistan, with populations exceeding 275 million and 240 million respectively, have seen substantial growth in halal consumption. Regulatory frameworks in Muslim-majority nations require halal certification for a wide range of products, pushing demand further. Additionally, consumer awareness of the ethical, health, and safety benefits associated with halal products has driven the growth of this market.

Growth in Islamic finance supporting halal trade: Islamic finance, which has a market value of USD 3.06 trillion in 2024, plays a pivotal role in supporting the global halal food trade. The alignment of halal products with Sharia-compliant financial practices has enabled the integration of financial products and services that specifically cater to halal manufacturers and traders. Countries like the UAE and Malaysia are leading hubs for Islamic finance, providing liquidity to businesses operating within the halal ecosystem.

Regulatory frameworks from OIC and other Islamic organizations: The Organization of Islamic Cooperation (OIC) has established regulatory frameworks and certification standards to facilitate trade in halal food products among its 57 member states, whose combined GDP is estimated at USD 7.7 trillion in 2024. The implementation of unified halal standards across member countries has strengthened trade relationships and eased the complexities associated with halal certification processes. Additionally, OIC-endorsed bodies such as the Standards and Metrology Institute for Islamic Countries (SMIIC) continue to regulate and monitor compliance, ensuring that halal food products meet stringent requirements, thus supporting cross-border halal food trade.

Market Restraints

Challenges in global halal supply chain integrity: Maintaining halal integrity throughout the supply chain is a significant challenge. Countries like Malaysia and Indonesia have strict protocols in place, but in non- Muslim-majority countries, such as Brazil, which is a leading exporter of halal meat (exporting 1.84 million tons of chicken to OIC nations in 2023), ensuring supply chain compliance is complex. Issues such as contamination risks, improper handling, and lack of oversight in some regions compromise the halal status of products. This challenge underscores the need for enhanced monitoring systems and transparent logistics in maintaining halal supply chain integrity globally.

complexities across regions: Halal certification varies significantly across different regions, creating confusion for both producers and consumers. For example, in the UAE, Malaysia, and Indonesia, the certification process is highly regulated, with specific government bodies overseeing compliance, whereas in non- Muslim-majority countries, certification is often handled by private organizations, leading to inconsistencies. In 2024, there are over 400 different halal certification bodies worldwide, many of which do not adhere to unified global standards, making it difficult for exporters to comply with multiple regulatory requirements. This complexity hampers the efficient global trade of halal products.

Global Halal Food Market Future Outlook

Over the next five years, the global halal food market is expected to witness sustained growth, driven by increasing consumer demand for halal-certified products, continuous regulatory support, and the expansion of halal offerings into new markets. The market's future growth will also be shaped by technological advancements, such as blockchain in halal supply chain transparency, and increasing halal certification requirements across non- Muslim-majority countries.

Market Opportunities

Innovation in halal food and beverages: The global halal market has seen a surge in innovative food and beverage products, catering to the evolving tastes of younger Muslim consumers. The rise of plant-based alternatives is one example of this innovation. In 2024, companies are introducing halal-certified vegan and vegetarian products, such as Beyond Meat and Impossible Foods, in Muslim-majority markets. This product innovation is supported by the increasing demand for ethical and sustainable food options in countries like the UAE and Malaysia, where plant-based halal foods are becoming mainstream in supermarkets and restaurants.

Expanding halal markets in non- Muslim countries: Non- Muslim countries like the United States and China are witnessing a growing demand for halal products. The U.S. halal food market, valued at approximately USD 25 billion in 2024, serves not only its Muslim population but also non- Muslims who associate halal food with higher safety and ethical standards. Similarly, China is emerging as a key market for halal products, with halal food catering to the country's 25 million Muslims. Regional expansion into non- Muslim-majority countries presents significant growth opportunities for halal food producers, with demand increasing beyond traditional markets.
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