Halal Products Market Will Grow At Highest Pace Owing To Growing Muslim Population Worldwide
Author : CMI Blogging | Published On : 13 Mar 2024
The halal products market primarily includes food and beverage products such as halal meat products, halal dairy products, halal bakery and confectionery products, halal beverages, and halal cereals and grains along with non-food products like cosmetics, pharmaceuticals, and halal lifestyle products. The halal products encompass food and non-food commodities that adhere to Islamic religious law (sharia). Halal food must be prepared, processed, handled, and stored using equipment and utensils that have been cleansed according to Islamic law. The need for halal products is rising significantly owing to growing Muslim population who prefer following religious guidelines when it comes to food consumption and daily use products.
The Global Halal Products Market Size is estimated to be valued at US$ 2843.03 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the halal products market are Stryker, KARL STORZ, Carl Zeiss Meditec, Leica Microsystems, Olympus Corporation, PerkinElmer, and LI-COR. With rising Muslim population worldwide, demand for halal certified food and non-food products is increasing rapidly across both Muslim majority countries as well as Western markets. In order to cater to the growing demand, key players are expanding their production capacities and offering wider range of halal certified products. Technological advancements in food processing and testing have enabled effective monitoring and certification of halal products, thereby ensuring quality and adherence to religious guidelines.
Market Trends
For example, introduction of halal color cosmetics, beauty products, Nutraceuticals etc. Increased adoption of technology and automation in halal certification is emerging as a key trend. Use of advanced tracking systems, blockchain, and digital certification is enabling transparency and efficient certification process.
Market Opportunities
Growing health-conscious population globally presents an opportunity for increased demand of halal dietary supplements and Nutraceuticals. Muslim travel and tourism industry offers significant scope for food services and hospitality sectors to supply hotels, restaurants with halal cuisine menus. Standardization of uniform global halal certification process can further boost international trade of halal products.
Impact of COVID-19 on Halal Products Market Growth
The COVID-19 pandemic has significantly impacted the halal products market globally. During the initial outbreak, the supply chains were disrupted due to nationwide lockdowns imposed by various governments. This led to reduced availability of halal certified raw materials for manufacturers. As movement restrictions were continued in most parts of the world in 2021 as well, it hampered the production and distribution activities. The closure of foodservice outlets like restaurants and cafes also declined the demand from the foodservice sector sharply.
However, with elevated health and safety concerns among consumers, the demand for halal certified packaged and ready-to-eat food products increased from retail channels. Many people switched to online grocery shopping, benefiting the e-commerce platforms. The halal food manufacturers leveraged online platforms to sustain business continuity. The awareness about immunity-boosting properties of halal meat and herbal products also supported the market. Various government initiatives are providing financial packages to sustain SMEs operating in the halal sector.
Going forward, as lockdowns are easing and vaccination drives gaining pace globally, the production and supply chain activities are expected to normalize. The work from home trend will continue benefiting the packaged food segment. Companies are focusing on innovation, enhancing online presence and adopting advanced technologies like blockchain to ensure transparency in certification. Collaboration with global certification bodies can accelerate the market recovery. Hygiene practices adopted during the pandemic will strengthen consumer confidence in halal products.
Geographical Regions with Highest Halal Products Market Value
Southeast Asia holds the largest share of global halal products market in terms of value, led by Indonesia, Malaysia and Singapore. The strong Muslim population, rising incomes, rapid urbanization and increasing influence of global halal standards have propelled the market growth in these countries. Large domestic demand and strong export potential from trade agreements like ASEAN and GCC drive the regional market.
The Middle East region also captures a substantial value share, with GCC countries spearheading industry growth. Abundant oil wealth, stringent government regulations favoring halal policies and increasing expatriate Muslim communities have benefitted the market expansion. Penetration of global brands and sophisticated cold chain infrastructure support sophisticated distribution of halal foods in the region.
Fastest Growing Region for Halal Products Market
Africa is projected to experience the fastest growth in the global halal products industry over the forecast period. Factors such as over 500 million Muslim population, rising needs of halal certified products, improving economic conditions, increasing food imports from Islamic countries and developing infrastructure are fueling the industry.
Countries like Nigeria, South Africa, Egypt and Kenya offer immense growth opportunities owing to their large Muslim populations and increasing affluence. Multiple Halal trade partnerships and growing influence of OIC standards are harmonizing Africa's halal ecosystem. Local manufacturers are collaborating with global certification bodies to leverage new opportunities. The regional market is expected to revolutionize African consumers’ access to a diverse range of compliant halal goods over the coming years.
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