The global halal food market was valued at $2.3 trillion in 2022 and is projected to reach $7.5 trillion by 2032, growing at a compound annual growth rate (CAGR) of 12.4% from 2023 to 2032.
In Islamic law, “halal” refers to what is lawful and permissible, while “haram” denotes what is prohibited. Halal guidelines apply not only to food but also to medicine, cosmetics, and other consumer goods, encompassing production methods, ingredient sourcing, and storage practices. Given the complexity of verifying halal compliance, national and private certification standards play a crucial role in ensuring consumer trust.
Market Dynamics
The growing global Muslim population has fueled demand for halal products, making the Islamic economy a key player in the food industry. This demand is expanding beyond Muslim-majority countries into regions such as the United States, where the halal food market was valued at $59.4 billion in 2022 and is projected to reach $88.9 billion by 2026. The increasing availability of halal-certified restaurants and food products is expected to further drive market growth in the U.S.
Beyond food, halal principles extend to healthcare, cosmetics, pharmaceuticals, and travel. Consumers across various demographics are showing interest in halal-certified products due to their association with stringent quality standards, ethical sourcing, and humane treatment of animals. The COVID-19 pandemic further accelerated demand for localized halal food production, supply chain resilience, and digital food services such as halal e-commerce and cloud kitchens. Companies like Getir, a Turkish on-demand delivery service, have capitalized on this trend by expanding into new markets.
Governments worldwide are implementing policies to strengthen their halal economies. For instance, Indonesia introduced mandatory halal certification laws in 2019, while Saudi Arabia expanded certification requirements to imported dairy products, oils, and frozen foods. Countries outside the Organisation of Islamic Cooperation (OIC), such as Singapore and South Korea, are also engaging in halal trade agreements, recognizing the sector’s economic potential.
Market Segmentation
By Product Type
- Meat and Poultry dominated the market in 2022, while the dairy segment is expected to experience the highest CAGR due to increasing consumer demand for transparency and halal-certified dairy products.
By Distribution Channel
- Supermarkets and hypermarkets accounted for the largest share of halal food sales in 2022, generating $822.7 billion in revenue. This segment is expected to reach $2.54 trillion by 2032, with consumers increasingly relying on large retail chains for diverse halal offerings.
Key Industry Developments
Acquisitions
- In November 2022, Cargill acquired Owensboro Grain Company to strengthen its North American supply chain.
Investments
- In March 2022, Kawan Food Bhd invested in Kejap Food, a Malaysian fast-food chain specializing in halal cuisine.
Joint Ventures
- In October 2022, BRF S.A. partnered with Saudi Arabia’s Halal Products Development Company (HPDC) to expand halal food production.
Product Launches
- In November 2023, Tahira Foods introduced new halal-certified spring rolls and samosas, expanding its product range.
- In January 2021, Al Islami Foods entered the plant-based market with the launch of a vegan halal burger.
Global Expansion
- American Foods Group launched a $1 billion beef processing facility in Missouri in 2022.
- BRF S.A. opened a new plant in Saudi Arabia, producing 1,200 tons of halal food per month.
- Nestlé Malaysia established a plant-based meal production facility, investing RM150 million in ASEAN markets.
Market Outlook
The global halal food market presents significant opportunities, particularly in developing economies where rising disposable incomes are driving demand. The Middle East, in particular, is witnessing rapid infrastructure development and improved retail distribution, creating favorable conditions for halal food market expansion.
As the market continues to grow, businesses investing in halal certification, supply chain transparency, and digital transformation will be well-positioned to capitalize on increasing consumer demand.
(Source: GLOBE NEWSWIRE)
