Upbeat outlook for UAE catering services

The UAE catering services market is set for sustained expansion from 2025 to 2030 with a CAGR of about 6% over the forecast period.

According to a report from MarkNtel Advisors, the momentum is underpinned by the UAE's growing tourism base, more international events and exhibitions, a rebound in air travel, and the presence of globally-recognised catering service providers. 

At the same time, changing consumer preferences—toward healthier, fresher, and premium dining options—are reshaping menu innovation and pushing operators to differentiate through compliance, customer experience, and sustainable practices, the consultancy said. 

MarkNtel Advisors said the UAE catering industry is witnessing a new phase of growth, driven by shifting consumer preferences, technological advancements, and rising demand across the events, tourism, and corporate sectors. 

Customers are increasingly seeking hygienic, health-conscious, and customised meal options, while caterers are integrating innovations like digital ordering, cloud kitchens, and automation to enhance efficiency. 

With the country strengthening its position as a global hub for weddings, exhibitions, and meetings, incentives, conferences, and exhibitions (MICE), opportunities for catering providers are expanding rapidly. At the same time, sustainability initiatives such as ecofriendly packaging and dietary flexibility—including vegan, organic, gluten-free, and halal-certified menus—are reshaping offerings, making adaptability and innovation essential for market competitiveness. 

Drivers of market growth include:  

Tourism and events

The UAE's global positioning as a tourism hub is a central growth pillar. Large-scale international events—such as Expo, Intersec, and GITEX—alongside year-round trade fairs, conventions, and exhibitions generate steady demand for banquet and corporate catering. With Dubai and Abu Dhabi cementing their reputations as regional MICE capitals, event-driven catering volumes are expected to remain robust.  

Non-contractual catering is primarily linked to events, weddings, and short-term engagements. While cyclical and seasonal, it remains lucrative during peak tourism and event cycles.   

Aviation and in-flight catering

The UAE is home to leading global carriers such as Emirates and Etihad Airways. The surge in air passenger traffic, coupled with fleet expansion initiatives, translates directly into higher demand for in-flight catering. 

Emirates Flight Catering (EKFC), for instance, operates one of the world's largest culinary facilities, producing more than 250,000 meals daily across 160,000 sq m of space. Partnerships between airlines and catering providers are set to deepen, with opportunities for service differentiation around menu innovation and sustainability.  

Corporate and institutional demand

The rapid pace of corporate expansion in the UAE—driven by free zones, low corporate tax regimes, and foreign direct investment—has fuelled demand for contract catering in office complexes, schools, and hospitals. Contract-based catering services are particularly favoured for their long-term cost efficiency, menu flexibility, and reliability.  

The corporate segment is largest in this market, fuelled by the increasing establishment of MNCs and regional HQs. Caterers targeting corporates are increasingly offering customised, health-focused menus to match employee wellness initiatives. 

Healthcare growth

The healthcare sector is becoming a powerful demand centre for catering services. Hospitals are increasingly outsourcing patient meals, clinician catering, and canteen management to specialised providers. Post-COVID, the emphasis on nutrition, hygiene, and timely delivery has become even more prominent, positioning hospital catering as both a growth driver and a compliance-critical domain. 

Hospitals are emphasising specialised dietary plans aligned with patient recovery and clinical nutrition requirements, MarkNtel Advisors said.

Other significant sectors include:

Education

Schools and universities are investing in nutritious meal programs, particularly in Abu Dhabi and Dubai.
Healthcare: 

Defense and offshore

Demand for robust, HACCP-compliant food solutions in defense bases, mining, and offshore oil rigs.
Event Management & Leisure: Weddings, conferences, sports events, and cultural festivals drive this segment. 

Mining and engineering, procurement and construction (EPC) projects

Contracted services for remote sites, particularly for oil and gas exploration as well as infrastructure projects. 

With UAE's active oil and gas as well as EPC projects, remote and industrial catering demand is expected to rise further. 

Top players mentioned in the report include EKFC, ADNH Catering, Royal Catering, National Catering Company (NCC), Abela & Co., WLL, KEITA, Al Jazeera International Catering, Kelvin Catering, Baguette Catering Services, and Emirates Catering Services.

This diverse roster of players compete across corporate, healthcare, aviation, hospitality, and remote site catering. Competition is increasingly driven by menu innovation, compliance excellence, sustainability commitments, and ability to scale across multiple sites. 

On the geographical front, Dubai is the lead region due to its strong tourism ecosystem, the presence of major catering companies like EKFC, and an active events calendar. Urban lifestyles and casual dining trends also fuel catering demand here.

Abu Dhabi and Al Ain host significant demand from the healthcare, defence, and corporate sectors, complemented by megaproject activity.

Sharjah and the Northern Emirates may have a smaller share but are also growing, supported by regional universities, mid-size corporates, and community events. 

Opportunities and trends in the UAE catering services industry include: 

Growing air traffic

With iconic tourist attractions such as Burj Khalifa, Sheikh Zayed Mosque, and Palm Jumeirah, alongside rising business travel, UAE's air traffic is expanding rapidly. This directly boosts the demand for in-flight catering, positioning it as one of the most dynamic sub-segments of the market.  

Health and wellness revolution

Caterers are rapidly adapting to the shift toward healthier meals. Trends include: 

• Organic and locally sourced ingredients
• Vegan and plant-based options
• Reduced reliance on frozen/prepared foods
• Customised dietary menus for corporate and hospital clients

Automation and technology

The adoption of automated kitchens and digital tools for menu planning, inventory, and HACCP compliance logging is transforming operations. Internet of Things (IoT)-enabled fleet management and kitchen robotics are gradually being tested to reduce turnaround time and enhance food safety.  

Sustainability 

UAE catering operators are integrating sustainable practices, including waste reduction programmes, ecofriendly packaging, and local sourcing partnerships (e.g., vertical farms like Bustanica). These initiatives align with both corporate environmental, sustainability and governance (ESG) mandates and government sustainability agendas.  

On the down side, input cost volatility, which can include imported food items and energy prices, are impacting pricing models. There are also labour management challenges due to the reliance on an expatriate workforce, as well as seasonal volatility linked to event-driven catering cycles. Caterers also need to navigate complex compliance requirements with multiple regulatory bodies and legislation: the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), Dubai Municipality, and the Federal Food Safety Law among them. 

Details

Explore the UAE Catering Services Market Research Report at https://www.marknteladvisors.com/research-library/uae-catering-services-market.html

Significant growth projected for the MENA halal food industry

BCC Research's Halal Food Regional Market Analysis: Middle East and North Africa (MENA) is projected to grow from US$253.9 B in 2025 to US$380 B by the end of 2030, with a CAGR of 7.1% from 2025-2030. Countries covered include Bahrain, Egypt, Iran, KSA, Kuwait, Oman, Qatar, and the UAE.

KSA has the largest market share, which is expected to be worth US$72.7 B by 2030, at a CAGR of 8% over the forecast period.

Distribution channels include hypermarkets and supermarkets, departmental stores, as well as online, while product types include meat and meat products, dairy products, fruits and vegetables, and grain products. The meat and meat product segment will continue to dominate through the end of the forecast period.

According to BCC Research, investment and funding in the MENA halal food sector are accelerating, driven by strong government support and interest from international companies. Governments are streamlining approval processes and strengthening regulations to foster a more business-friendly environment. Rising consumer demand for food safety, ethical consumption, and Islamic lifestyle products, amplified by social media, is fuelling market growth. Additionally, strategic collaborations among governments, regulators, and research institutions are advancing innovation, ensuring global compliance, and promoting sustainable development within the halal food ecosystem.

Growth drivers include:

A growing population: The MENA region has a rapidly expanding Muslim population, which naturally sustains and increases demand for halal food. As religious dietary laws are central to daily life, this demographic growth ensures a steady and loyal consumer base for halal-certified products.

E-commerce: The rise of digital platforms and online food delivery services has made halal food more accessible than ever. Consumers can now easily find and purchase halal products online, boosting market reach and convenience, especially among the tech-savvy younger generation.

Increased investment: Governments and private investors are pouring resources into the halal food sector, supporting infrastructure, certification, and innovation. This financial backing is helping local producers scale up and attract global interest, positioning MENA as a key player in the global halal market.

Trends identified by BCC Research include:

Digitally-influenced halal choices: The halal food market in MENA is experiencing rapid growth, largely fuelled by the rising impact of Islamic lifestyle content on social media. Millennials and Gen Z are especially responsive to online trends and influencers, often basing their food choices on digital recommendations.

Ethical and clean eating trends: A growing regional focus on ethical consumption and clean eating is further accelerating the expansion of the halal food market, aligning with global health-conscious and sustainability-driven consumer behaviours.

BCC Research also highlighted Halal Products Development Company (HDPC), a KSA-based startup and a subsidiary of the Public Investment Fund (PIF). The company is dedicated to developing a robust halal ecosystem within the kingdom and promoting the localisation of halal production.

HPDC supports international players in expanding their footprint in the Saudi market and invests in the halal industry to enhance the country's production capacity. Its overarching goal is to position KSA as a global hub for the halal sector. Additionally, HPDC offers advisory services to industry stakeholders seeking to navigate the halal market landscape.

Much activity expected in the Indonesian cold chain market through to 2026

The Indonesian cold chain market is expected to be valued at about IDR6,800 B by 2026, says research firm Ken Research.

According to the company, the cold chain market is highly fragmented and currently includes 100+ cold transportation and storage players. A significant increase in the number of companies is expected year-on-year due to consumer demand and technology advances, leading to significant industry fragmentation, Ken Research said.

Bright outlook for plant-based food

The global plant-based food market is set to be worth US$34 B by 2030, according to Growth Market Reports.

Global Plant-based Food Market by Types (Seafood Substitute, Egg Substitute, Meat Substitute, Dairy Substitute, and Others), Sources (Pea, Wheat, Nuts, Soybean, and Others), Distribution Channels (Online Retail, Specialty Stores, Convenience Stores, Modern Groceries, and Others), and Regions: Size, Share, Trends, and Opportunity Analysis, 2021-2030 states that the market was valued at US$10 B in 2021 and is expected to grow at a CAGR of 12% till 2030.

Research highlights:

- The modern groceries segment is expected to hold a major market share in the coming years, owing to the appealing discounts, shelf space, and bundling tactics.

- Athlete-led and celebrity awareness campaigns have encouraged the consumption of vegetarian products in order to have a healthy diet.

- High costs associated with the products and raw materials is anticipated to hamper the market growth during the forecast period.

- Collaborations between key players in the plant-based food market and restaurants, large chains, as well as industry titans including Beyond Meat, Oatly, and Impossible Foods will drive growth.

The dairy substitute segment is anticipated to expand at a sustainable CAGR during the forecast period, due to the nutritional advantages of plant-based dairy alternatives. Dairy substitutes are prioritised by many people due to lactose intolerance and concerns over animal cruelty in conventional dairy farming practices.

The soy segment is expected to grow at a significant pace during the forecast period, due to the wide applications in various food and beverage sectors including bakery, meat, and dairy alternatives. Soy is less expensive as compared to other sources and is increasingly accepted by consumers.

Brands profiled in the report include:

- Plamil Foods 

- Sahmyook Foods

- Sanitarium Health and Wellbeing Company

- The Hain Celestial Group 

- Taifun –Tofu 

- Unilever 

- VBIte Food

Explore

Buy the report

Growth expected in halal cosmetics and personal care market

Technavio says the halal cosmetics and personal care market is poised to grow by US$28.34 billion from 2020-2024, progressing at a CAGR of over 7% during the forecast period. Year-over-year growth for 2020 is estimated at 6.7%.

Source: Technavio. The Halal Cosmetics and Personal Care Market 2020-2024 report forecasts 6.7% growth globally for 2020.

According to its halal cosmetics and personal care market report:

- Demand for halal personal care and grooming products for men are major trends driving the growth of the market.

- The Asia Pacific region will contribute 44% of the market share.

- The company advises market vendors to focus more on the fast-growing segments, while maintaining their positions in the slow-growing segments.

Vendors mentioned in the Halal Cosmetics and Personal Care Market 2020-2024 report include:

• Amara Halal Cosmetics
• Clara International Beauty Group
• Ivy Beauty
• PROLAB COSMETICS
• Martina Berto
• Paragon Technology and Innovation 
• Saaf Skincare 
• Talent Cosmetics Company
• Total Beauty Network
• Wipro Enterprises

However, Technavio said the market is fragmented, and the degree of fragmentation will accelerate during the forecast period.

Technavio is a global technology research and advisory company focusing on emerging market trends and actionable insights to help businesses identify market opportunities and develop effective strategies to optimise their market positions. Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries.

Details:

Buy the report

Vegan food market CAGR expected to be 11.4% through to 2027

Government initiatives and consumer concerns related to health are major factors influencing the growth of global vegan food market, says consultancy Absolute Market Insights (AMI). Vegan foods include fruit, vegetables, nuts, cereals, pulses, milk, yoghurt, cream, margarine, cheese, soy products, as well as dairy alternatives and meat substitutes.

The global vegan food market was valued at US$10.66 billion in 2018 and is anticipated to reach US$27.98 billion by 2027, growing at a CAGR of 11.4% over the forecast period, according to AMI. Consumer preferences across the globe toward vegetarian and flexitarian food are driving the demand for vegan food products, AMI said. Consumers are more inclined towards a healthy lifestyle today and largely prefer plant-based food products to provide their nutrition, the consultancy elaborated. Whereas vegetarians do not eat meat or fish, flexitarians have a primarily vegetarian diet but may occasionally take meat or fish.

Governments have also been introducing vegan food items to reduce meat consumption, due to associated health concerns and environmental issues. The China government has taken the initiative to reduce its citizens' meat consumption by 50% to combat global warming. The ongoing prevalence of the coronavirus (COVID-19) has accelerated the trend.

Food manufacturers such as Beyond Meat and Impossible Foods have responded to the trend with plant-based food products that resemble meat in terms of taste and texture, while restaurant chains have begun to offer dishes that feature plant-based 'meat'. 

Report highlights include:

- The dairy alternatives segment is expected to witness a tremendous growth over the forecast period.

- The online distribution channel registered highest market share in 2018 and is expected to further proliferate over the forecast period.

- The Asia Pacific market is anticipated to witness highest growth over the forecast period.

Some of the players mentioned in the report include ADM, Amy's Kitchen, Beyond Meat, Blue Diamond Growers, Conagra, Hain Celestial, Hormel Foods Kellogg, Kraft Foods, LIGHTLIFE FOODS, Marlow Foods (Quorn), NESTLÉ, Smithfield Foods, THE WHITEWAVE FOODS COMPANY, and Tyson Foods.

Within the Asia Pacific region, the following countries are studied: China, Japan, India, New Zealand, Australia, South Korea, Indonesia, Thailand, Malaysia, and Singapore. Southeast Asia, the Rest of Southeast Asia and the Rest of Asia Pacific are also segmented as regions. For the Middle East and Africa, KSA, UAE and Kuwait are some of the countries studied.

Details:

Buy the report (April 2020)

Malaysia leads the sukuk market

Source: IIFM website. The IIFM
sukuk report for 2018.

Malaysia continues to be the leader in sukuk, with combined domestic and international issuances of US$612 billion, according to the International Islamic Financial Market (IIFM) Sukuk Report 2018.

Launched at a May IIFM seminar organised by IIFM and hosted by Labuan IBFC, the report examines the development, structural preferences and drivers of the international and domestic sukuk market in recent years with a special focus on 2017. The report also provides an overview of the trends and prospects of the sukuk market and highlights major issuances around the world in 2017.

The report suggests that Malaysia with its deep capital market retained its position as the top sukuk issuer over its peers from the Far East and the Gulf Cooperation Council (GCC). In comparison, Indonesia's issuances total US$63 billion while KSA issued US$95 billion. The UAE had US$68 billion in issuances.

Labuan Financial Services Authority Director-General Danial Mah Abdullah said, “Malaysia has always played an important innovative role in Islamic financial services, boasting a comprehensive regulatory framework for Islamic banking, finance, takaful and asset management.

“As an extension and in support to this, Labuan IBFC has also been an innovative bed for Islamic financial products. For instance, the introduction of waqf embedded within a private foundation set up as a wealth management structure, through the Labuan International Waqf Foundation is a classic example of this innovation from Labuan IBFC. It is also home to the world’s first US-dollar denominated exchangeable sukuk. These have contributed to Malaysia’s position as the global leader in sukuk issuance.”

Ijlal Ahmed Alvi, Chief Executive of IIFM commented, “Barring Malaysia, the corporate sukuk issuances in most of the established jurisdictions is below expectation and challenges including legal and policy issues must be resolved to encourage more sukuk issuances by corporate entities.

“There is a degree of confidence in both established sukuk issuing jurisdictions as well as new jurisdictions entering the sukuk market which is evident from longer-dated sukuk ranging from 30 years to perpetual being issued.”

In his opening remarks, Danial said that the seminar is an excellent opportunity to build greater awareness and enhance understanding on the standardisation efforts spearheaded by the IIFM. Danial said, “The standards published by the IIFM have brought tremendous benefits to the industry by reducing legal and shari'ah compliance related costs, strengthening risk management capabilities, increasing efficiency, promoting shari'ah harmonisation and encouraging law reforms.

“These standards are not only utilised by financial institutions which are active in Islamic finance markets in the GCC, Africa, Asia and Europe but also by the regulators as reference for providing Shariah-compliant facilities to Islamic financial institutions in their respective jurisdictions.”

Chairman of IIFM Khalid Hamad said, “IIFM, in publishing shari'ah-compliant standard documentation and product confirmations for the Islamic finance wholesale market, is assisting in creating a transparent and robust industry and I expect the leadership of Islamic banks as well as the regulators to encourage the use of IIFM standards in their jurisdictions which will further enhance efficiency, reduce costs, promote best market practice and serve in the unification and harmonisation of the industry.”

Details:

Download the IIFM Annual Sukuk Report 2018 (PDF)

KSA halal food and beverage market to have a CAGR of over 9% through to 2023

The KSA halal food and beverage market is projected to grow at a CAGR of over 9%, in value terms, from 2018 to 2023, says TechSci Research.

Source: TechSci Research. KSA halal food and beverage market by size, region and value, 2013 to 2023 (forecast). The west region includes Tabuk, Madinah and Makkah, while the Central region is home to Qassim and Riyadh, capital of KSA.

Increasing demand for packaged halal foods among non-Muslims*, strong import and export regulation and policies regarding halal food and beverages and increasing Muslim population in the country will spur further growth of the halal food and beverage market in the country, the consultancy said.
 
Major players operating in the KSA halal food and beverages market include Al Islami Foods, Amana Foods, One Foods Holdings, Khazan Meat Factory, Al Kabeer Group, Albatha, Midamar, Prairie Halal Foods, JM Foods, AL RAWDAH, Nestlé Dubai Manufacturing and Agthia.

Explore:

Buy the Saudi Arabia Halal Food & Beverages Market By Product Type (Bakery, Candy & Chocolate, Meat Products, Beverages), By Product Type (Bakery, Candy & Chocolate, Meat Products, Beverages), Competition Forecast & Opportunities, 2013 – 2023 report (December 2017)

*This view is often mentioned in forecasts about the halal market. This author has never encountered such views among non-Muslims. There is indeed a shift towards clean and healthy eating and a corresponding focus on the food chain. However, non-Muslims are looking for foods which satisfy the criteria for clean and healthy eating and it does not matter to them if the foods are halal or not. They are not seeking out halal foods to satisfy their preference for clean and healthy eating. Nor do they feel that the halal label means that the food is cleaner or healthier.

State of the Global Islamic Economy Report 2017/18 forecasts Islamic finance asset value at nearly US$4 trillion by 2022

· Muslim spend on halal food and beverage forecast to reach US$1.93 trillion by 2022

· Islamic finance assets expected to surge to US$3.8 trillion by 2022

· UAE ranks third globally across three sectors

The Dubai Islamic Economy Development Centre (DIEDC) has unveiled the State of the Global Islamic Economy Report 2017-2018, titled Outpacing the Mainstream. The report, issued annually by DIEDC in collaboration with Thomson Reuters, was released on the sidelines of the 5th Islamic Economy Award, held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, VP and PM of the UAE and Ruler of Dubai. 

Although Malaysia leads the Global Islamic Economy Indicator for this year, the UAE has been ranked first among 10 countries in three sector indicators – Modest Fashion, Halal Media and Recreation, and Halal Pharmaceuticals and Cosmetics.

HE Sultan bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of DIEDC, said: “This year’s Global Islamic Economy Indicator testifies to the success of the UAE in pioneering an appropriate Islamic economy ecosystem within a short period, when compared with other nations that have been active in fostering this niche economic system - especially in the halal industries space. Shari'ah-compliant sectors are central to the Islamic economic system and attract the most investment – thereby facilitating an Islamic economy-friendly environment.”

HE highlighted that the indicator evaluated the health of the Islamic economy ecosystem across more than 73 countries, based on equally weighted key metric categories, including governance, awareness, and social considerations. The UAE’s exceptional performance highlights the synergy between the government’s wise vision and the practices of the private sector, he said.

Abdulla Mohammed Al Awar, CEO of DIEDC said: “Over the past few years, the findings of the report have continually provided us with new insights and perspectives to better understand the dynamics of consumer behaviour among Muslims across key markets. Each year the report offers fresh facts and statistics that project a promising future for the Islamic economy sector.”

Addressing the developments realised in the past year, he added: “Year-on-year, we are witnessing a surge in demand for products that are manufactured in compliance with stringent environmental sustainability, safety and health standards. The meticulous adherence of Islamic economy products to such standards across the production, distribution and supply value chain explains their increased attractiveness and uptake among larger segments of the world population today."

He concluded: “The decline in oil prices has led to a fundamental shift in the nature of the economies of the GCC region and led to a greater focus in developing non-oil productive sectors. This trend has positioned the halal industry and trade in a prime position as growth drivers of the economy for the coming years.”

Nadim Najjar, MD, Middle East and North Africa at Thomson Reuters said: “For the fifth consecutive year, the State of the Global Islamic Economy Report presents the latest developments and trends from the Islamic economy while also highlighting its future direction. The Islamic economy is at the cusp of major growth and widespread recognition, having gained traction as Muslims increasingly assert their religiosity and traditional values in their economic decision making.

"Awareness about the concept of 'halal' is on the rise, and companies are responding to these consumer needs. Also, for the first time, we have done an assessment of the future state of the Islamic economy and what it look like by 2030, which could see the emergence of numerous scaled global enterprises, if core challenges and opportunities are addressed.”

The State of the Global Islamic Economy Report 2017/18 estimates Muslim spend across food, beverage, and lifestyle sectors at US$2 trillion in 2016, accounting for 11.9% of global expenditure. By category, food and beverages (F&B) lead Muslim spend at US$1.24 trillion, followed by clothing and apparel at US$254 billion, media and entertainment at US$198 billion, travel at US$169 billion, and spending on pharmaceuticals and cosmetics at US$83 billion and US$57.4 billion respectively.

The report found halal food to be the largest and most diverse sector of the Islamic economy. New entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, ready-made meals, snacks and children’s food.

Established players are expanding at home and abroad through franchising. Multinationals have also made major investments in Muslim-majority markets, anticipating rising demand. Meanwhile, private equity investment and sovereign wealth funds have been particularly active, and a number of halal investment funds are in development.

The International Halal Accreditation Forum, established in the UAE in 2017 and overseeing 19 certifiers globally, is a further positive development for the industry. With Muslim spend on food and beverages growing at nearly double that of global growth, there are significant opportunities for investment and the creation of global halal food brands, with spending expected to reach US$1.93 trillion by 2022, the report said.

The Islamic finance sector continues to evolve. Both Muslim-majority and Muslim-minority countries are recognising the segment’s potential, with banks becoming fully-fledged Islamic institutions, and governments encouraging Islamic finance to improve financial inclusion. The sukuk industry continues to mature, with a number of debut sukuk issuances over the past year and more in the pipeline.

Further propelling growth is the adoption of Islamic fintech, be it the world’s first shari'ah-compliant robo-advisory firm (Algebra), or the first shari'ah-compliant gold platform. Notably, such endeavours have been achieved through utilising crowdfunding. Assets were estimated at over US$2 trillion in 2016, and expected to surge to US$3.8 trillion by 2022.

Family-friendly travel is getting its moment in the sun. The number of Muslims travelling is at an all-time high, and there is corresponding demand for travel that adheres to Islamic values, be it hotels and beach resorts, to dining options and airlines. Halal hotel chains are also emerging and family-friendly attractions are being developed in the GCC. Along with a plethora of new online agencies catering to Muslim tourists, the Muslim equivalents of Airbnb have emerged. Muslim spend on travel was US$169 billion in 2016, and is forecast to reach US$283 billion by 2022.

As for modest fashion, designer brands and boutiques have recognized that Modest Fashion is trending, developing new lines and Ramadan collections. Start-up Modest Fashion brands have also been making inroads around the world, particularly for Hijabs, gaining traction by spreading the word through social media. Modest athletic apparel is a notably trendy segment, with Nike getting in on the act as well as Danish label Hummel. Muslim spend on clothing was US$254 billion in 2016, and is forecast to reach US$373 billion by 2022.

Halal media is challenging perceptions and adapting to the needs of Muslim Millennials. New films are being released, TV channels are going on air, and mainstream media is increasingly embracing Islamic content, be it on Buzzfeed, or Amazon Channels offering films and documentaries about Muslim culture and life through streaming service Alchemiya. Muslim spend on media and entertainment was US$198 billion in 2016, and is forecast to reach US$281 billion by 2022.

The halal pharmaceuticals and cosmetics sector is quickly moving out of its niche status, especially halal cosmetics. Companies continue to open and make their presence felt on retail shelves and online. Multinational companies are also recognising the segment’s potential, notably US-based Orly teaming up with Muslimgirl.com to create and launch six halal nail polishes in time for Ramadhan. Spend on cosmetics was estimated at US$57.4 billion, and to reach US$82 billion by 2022.

Halal pharmaceuticals are equally gaining traction, especially the biologics (medical drug made from biological sources) and nutraceuticals (product with both food value and other health benefits), while halal-certified vaccines for dengue fever, polio and meningococcal meningitis (for Hajj) are soon to be launched worldwide. Muslims spend on pharmaceuticals was US$83 billion in 2016, and is forecast to reach US$132 billion by 2022.

Hashtag: #SGIE

Asia Pacific region dominates in halal food demand

The global halal food market is anticipated to reach US$2.55 trillion by 2024, driven by the rising demand for the consumption of halal meat. The growing awareness of halal food and its positioning as hygienic and healthy food among both Muslim and non-Muslim* community is expected to drive the demand over the forecast period, Hexa Research has said.

The leading markets are Asia Pacific and Middle East regions, which have a considerable concentration of the around 1.8 billion global Muslim population as of 2015. The Asia Pacific region has the highest market share in terms of revenue (US$594 billion) and is projected to maintain its dominance in the market over the forecast period (2014-2024), the consultancy said. A growing Muslim population, especially in India and Indonesia, and the more awareness among consumers in the region from countries such as Pakistan, India, and Bangladesh, Indonesia, Singapore, and the Philippines are expected to drive the market over the forecast period.

The absence of a uniform halal standard across countries makes it challenging for vendors to get their products halal-certified. Hexa Research says there is a need for oversight on the halal food industry considering the halal meat scandals in Europe and North America regions.

Processed food & beverages dominated the market, contributing US$836.6 billion in 2016. This segment is expected to maintain its leading position over the forecast period as well. The food & beverage segment is followed by the baked products segments and confectionery segments. Over the forecast period, baked goods are expected to grow at a CAGR of 9.6% with an increasing demand for ready-to-eat and packaged products such as cookies, doughnuts, savoury pastries, pretzels, biscuits and cakes. 

Some of the leading players operating in the halal food market are Al Islami Foods, QL Foods, Saffron Road Food, Dagang Halal, Janan Meat, Kawan Foods, Cargill, Prima Agri-Products, Nestle and Cleone Foods. Over the past few years, fast food chains such as KFC and McDonald's have started providing halal certified products to widen their customer base, Hexa Research said.

Hexa Research also put the global halal market at 1.8 billion Muslims as of 2015, and said halal demand has gone beyond consumable products to cosmetics and pharmaceuticals and service sector components such as marketing, logistics, and packaging.

Source: Hexa Research. Global halal food revenue, by end use, 2014-2024, in US$ billion.

Details:

Buy the Hexa Research Halal Food Market Size and Forecast, By Application (Processed Food & Beverages, Bakery Products and Confectionary**), and Trend Analysis, 2014 - 2024 report. 

*This is often repeated but non-Muslims typically express no interest in whether there is halal certification for a product because it is more hygienic or healthier. They will buy a product because it is positioned that way irrespective of whether it is halal. They are interested however in whether there was cruelty to animals involved and may buy a halal product because it has not been tested on animals.

**sic