Halal Food Market Report

Market Overview:

The global halal food market size reached US$ 2,221.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 4,177.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8% during 2023-2028. The increasing awareness about the benefits of consuming halal food products, rising health consciousness among individuals, and the growing consumption of RTE halal food products and beverages worldwide represent some of the key factors driving the market.

Continuous Technology Advancements Fostering Market Growth

Various halal laboratories are integrating advanced technologies, such as artificial intelligence (AI), machine learning (ML), radio frequency identification (RFID) chips, blockchain and the Internet of things (IoT), in halal food certification to improve safety and analyze food products for maintaining quality standards and detect the presence of porcine material or alcohol. These advanced technologies offer transparency in the halal economy and allow tracing of the origin of halal food products.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented with many players present in the market. The volume of new entrants is high in the halal food industry due to low product differentiation and low switching costs.

What is Halal Food?

Halal food refers to any food prepared according to Islamic dietary laws. It is cleaned, stored, and packaged using halal-certified packaging materials and equipment. It is also defined as lawful, permissible, and clean products that are safer to eat, hygienic, and enhance metabolism and immunity. It forbids the usage of human- or animal-derived ingredients and genetically modified organisms (GMOs), such as fluids discharged from bodies, ham, pigs and their derivates, blood, and carrion. It is also free from other ingredients, including alcohol, silicone based polymer, L-cysteine, lipase, mercury, dimethicone, and rennet, that are harmful for human consumption. Its consumption is considered a symbol of unity and brotherhood among the Muslim population.

COVID-19 Impact:

The COVID-19 pandemic outbreak has caused a significant impact on the halal food industry and imposed unprecedented challenges on numerous countries. In the early days of the pandemic, panic buying and stockpiling led to shortages of many essential goods, including halal food products. Several halal food producers struggled to keep up with demand, and supply chain disruptions caused delays and increased costs. Additionally, numerous businesses in the halal food industry had to shut down or reduce operations due to government restrictions on travel and business activities. The closure of restaurants and other food service establishments also had a significant impact on the halal food industry. With fewer customers, various halal food businesses had to pivot to online sales or find alternative distribution channels to stay afloat. While some companies were able to adapt quickly, others were not, which led to layoffs and closures. Furthermore, the pandemic led to increased consumer interest in halal food products, as many people turned to healthier and more sustainable food choices during lockdowns. This trend has continued even as lockdowns have lifted, with more people seeking out halal food products in supermarkets and online stores.

Halal Food Market Trends:

The increasing Muslim population and the rising awareness about the benefits of consuming halal food products, such as improved taste, high nutrition, and tender and stress hormone-free meat, represent one of the major factors strengthening the market growth around the world. Moreover, the growing health consciousness among individuals and increasing concerns about food safety, reliability, and hygiene among individuals is resulting in the shifting consumer preference towards halal certified food products across the globe. In addition, several measures are being undertaken by the governing authorities to mandate the adoption of halal certification and labeling rules. They are also undertaking initiatives to promote sustainable farming methods due to the increasing environmental concerns. Apart from this, the rising number of commercial establishments, such as hotels, restaurants, cafes, quick service restaurants (QSRs), and other food joints, is favoring the growth of the market. Furthermore, numerous international companies are launching halal food variants in their product portfolios to meet the religious beliefs of their regional consumers. This, coupled with the growing consumption of ready to eat (RTE) and convenient halal food products, including hummus, fruit juices, milk, coffee, smoothies, hot dogs, nuggets, soups, candies, cookies, and pizzas, is creating a positive outlook for the market. It can also be attributed to rapid urbanization and expanding purchasing power of consumers. Besides this, the increasing sales of halal food products through e-commerce channels and food delivery apps, as they offer diverse product ranges, discounted offers, convenient purchases, and doorstep delivery, is propelling the growth of the market. Additionally, the rising influence of social media, along with increasing investment by leading players in advertising campaigns, such as celebrity and influencer endorsements, for improving their existing sales and profitability, is catalyzing the demand for halal food products worldwide.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global halal food market report, along with forecasts at the global and regional level from 2023-2028. Our report has categorized the market based on product and distribution channel.

Product Insights:

• Meat, Poultry and Seafood
• Fruits and Vegetables
• Dairy Products
• Cereals and Grains
• Oil, Fats and Waxes
• Confectionery
• Others
   

The report has provided a detailed breakup and analysis of the halal food market based on the product. This includes meat, poultry and seafood; fruits and vegetables; dairy products; cereals and grains; oil, fats and waxes; confectionery; and others. According to the report, meat, poultry and seafood represented the largest segment as they involve halal lambs, beef, and other foods that are healthier to consume and aid in boosting metabolism and strengthening the immune system. Moreover, the advent of new and innovative halal meat by key players is influencing the market positively.

Distribution Channel Insights:

• Traditional Retailers
• Supermarkets and Hypermarkets
• Online
• Others
   

A detailed breakup and analysis of the halal food market based on the distribution channel has also been provided in the report. This includes traditional retailers, supermarkets and hypermarkets, online and others. According to the report, supermarkets and hypermarkets accounted for the largest market share as they ease physically examining of halal-certified goods. Moreover, increasing number of supermarket and hypermarket stores is favoring the market growth across the globe.

Regional Insights:

• Asia Pacific
• Middle East & Africa
• Europe
• North America
• Latin America
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Asia Pacific, the Middle East and Africa, Europe, North America, and Latin America. According to the report, Asia Pacific was the largest market for halal food. The increasing Muslim population that abides by the Islamic Sariah norms represents one of the key factors driving the Asia Pacific halal food market. Additionally, rising stringent regulations by governing agencies that consist of mandatory halal labeling and certification rules for food and beverages is bolstering the market growth in the region. Besides this, the growing consumption of halal food is influencing the market positively.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global halal food market. Some of the companies covered in the report include:

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

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the halal food market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global halal food market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the halal food industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.