Halal Food Market Will Grow At Highest Pace Owing To Rising Muslim Population Globally

The halal food market involves products made from ingredients that are permissible according to Islamic dietary guidelines. It includes meat and poultry, fruits and vegetables, grains and cereals, sweetners, snacks, and other food products, all prepared in compliance with the Sharia. Halal food is finding wide acceptance not just among Muslims but globally as it is considered cleaner and healthier compared to conventional food.

The global halal food market is estimated to be valued at US$ 1143.01 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2030.

Key Takeaways

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. and BRF S.A. hold the major market share owing to their extensive global presence and product portfolio. The growing Muslim population globally and increasing preference for halal certified food products is driving the demand. Technological advancements in packaging, logistics and supply chain management have improved the availability of halal food products globally.

Market Trends

One of the key trends in the halal food market is clean label and organic products. Consumers are increasingly demanding organic, natural and clean labeled halal food products which has led manufacturers to introduce various clean label and organic halal food product lines. Another major trend is mainstreaming of halal food. With growing acceptance globally, major restaurants and retail chains are including halal food menus and sections to cater to the increasing demand.

Market Opportunities

One of the major opportunities for players in the halal food market is the growing online sales and e-commerce platforms. Several companies have established strong online presence and are leveraging e-commerce channels to boost sales globally. Another key opportunity is the rising demand from non-Muslim populations. As halal food is considered healthy and prepared through humane methods, non-Muslim populations are also gravitating towards it presenting significant growth opportunities.

Impact of COVID-19 on Halal Food Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global halal food market. During the initial lockdown phases in early 2020, the market witnessed a decline in demand as hotels, restaurants and catering services were shut down. This led to disrupted supply chains and fall in production volumes across major regions. However, as people were confined to their homes, the demand for packaged Halal Food Market Demand and ready-to-eat halal foods increased from supermarkets and online retailers. Manufacturers responded by ramping up production of instant noodles, frozen meals, baked goods and snacks to cater to the rising home consumption. The pandemic has also accelerated the shift towards online platforms, with many halal food brands launching their own e-commerce websites or partnering with third-party delivery services. Looking ahead, the market is expected to rebound steadily as restrictions ease and the food service sector reopens fully. Players are focusing on innovative product launches, strengthening their digital presence and expanding into untapped international markets to fuel future growth in the post-COVID period.

Geographical Regions with Highest Halal Food Market Concentration
In terms of value, the Middle East and Asia Pacific regions account for the bulk of the global halal food market share. This can be attributed to the large Muslim populations in countries such as Indonesia, Turkey, Pakistan, Iran, Egypt and Saudi Arabia which have strong domestic demand. Within the Middle East, Saudi Arabia is the largest market due to religious pilgrimages, tourism and events like Hajj which attract large international travelers. In Asia, Indonesia has emerged as a major hub due to its central role in supplying halal certified ingredients globally. Stringent regulations and oversight from certifying bodies in these countries have boosted consumer confidence over the years.

Fastest Growing Region in the Halal Food Market
Africa is expected to be the fastest growing regional market for halal food over the next decade. This is driven by expanding Muslim population demographics, rising affluence, urbanization and global halal awareness campaigns across North and Sub-Saharan nations. Countries like Nigeria, Egypt, South Africa, Algeria and Morocco offer significant headroom for market penetration. Multinational brands are setting up local manufacturing bases while domestic SMEs are receiving government incentives to participate in growing intra-Africa and Middle East trade. Increased halal certifications, logistics infrastructure and cross-border collaborations will help accelerate future growth opportunities across the African continent.