A) Market Overview:
Halal food refers to any food or beverage that meets the Islamic dietary guidelines as prescribed in the Quran. The demand for halal food has been steadily increasing due to the rise in the global Muslim population and the growing awareness and preference for ethically produced food. The market offers a wide range of halal food products, including meat, poultry, seafood, dairy products, and processed foods, among others.
The global Halal Food market is estimated to be valued at US$ 879.6 Bn in 2022 and is expected to exhibit a CAGR of 12.80% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
B) Market Dynamics:
The market dynamics of the Halal Food industry can be attributed to two main drivers. Firstly, the increasing Muslim population around the world is a key driver for the growth of the Halal Food Market. As the global Muslim population continues to grow, there is a rising demand for food products that comply with Islamic dietary laws. This has led to a surge in halal food production and consumption in both Muslim-majority countries and non-Muslim-majority regions with a significant Muslim population.
Secondly, there is a growing demand for ethically produced food among consumers globally. Halal food is perceived as being produced through humane and ethical practices, including proper animal welfare during slaughtering, which aligns with the preferences of conscious consumers. This consumer preference for ethically produced food has further boosted the demand for halal food products.
C) Market Key Trends:
One key trend observed in the Halal Food Market is the increasing availability of halal-certified products in mainstream retail and e-commerce platforms. With the growing consumer demand for halal food, major retailers and online marketplaces are expanding their halal food offerings. This trend allows consumers easy access to a wide range of halal-certified products, thereby facilitating the growth of the halal food market.
An example of this trend is the partnership between Saffron Road Food and major supermarket chains in the United States, where Saffron Road's halal-certified products are stocked on shelves alongside conventional food products. This not only caters to the Muslim consumer base but also appeals to a broader customer segment looking for ethically produced food options.
D) SWOT Analysis:
Strengths:
Growing Muslim population
Increasing awareness and demand for ethically produced food
Weaknesses:
Limited availability of halal-certified products in certain regions
Stringent regulations and certification processes for halal food production
Opportunities:
Expansion of the halal food market in non-Muslim-majority regions
Introduction of innovative and convenient packaging for halal food products
Threats:
Intense competition from non-halal food products
Adherence to strict halal certification requirements impacting production costs
E) Key Takeaways:
- The global Halal Food market is expected to witness high growth, exhibiting a CAGR of 12.80% over the forecast period, due to the increasing Muslim population and growing demand for ethically produced food.
- In terms of regional analysis, the Middle East and North Africa (MENA) region is expected to be the fastest-growing and dominating region in the Halal Food market. This can be attributed to its large Muslim population and the strong presence of halal food producers and suppliers in the region.
- Key players operating in the global Halal Food market include Cargill Inc., Al Islami Foods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., and Saffron Road Food. These key players are actively involved in product innovation, partnerships, and geographical expansion strategies to gain a competitive edge in the market.
