The report estimates that in 2012, the halal food and beverage market accounted for 16.6% of the global food and beverage market. By 2018, the market is expected to be worth US$1.6 trillion, a CAGR of about 6.9%.
The Dubai Chamber report was released on 10 August against the backdrop of the 10th World Islamic Economic Forum (WIEF), to be held in Dubai from 28-30 October 2014. One of the discussion points at the event will be halal food as a major component of the Islamic economy.
H.E. Abdul Rahman Saif Al Ghurair, Chairman of Dubai Chamber, said: “We see opportunities to enhance the halal food industry. The research finding on halal food sector is of considerable importance for the UAE food and beverage business, especially since halal food is a key pillar in the Dubai Capital of Islamic Economy initiative launched in 2013. Based on the initiative, Dubai has the capability to create new avenues for growth in this sector, and become an international centre for the halal industry.”
According to the Dubai Chamber report, the UAE halal food consumption market was valued at around US$20 billion in 2012. Halal meat is an important component of this market, dominated by unpackaged meat which, according to 2013 estimates, accounted for 78.7% of the market.
According to the Dubai Chamber report, the UAE halal food consumption market was valued at around US$20 billion in 2012. Halal meat is an important component of this market, dominated by unpackaged meat which, according to 2013 estimates, accounted for 78.7% of the market.
Most of the meat sold in the UAE is uncooked, with retail sales accounting for 43.8% of the UAE raw meat market in 2013 while the food service business, including hotels, restaurants and catering outlets, constituted 47.9%.
Highlighting the preference of UAE residents for packaged food as they look for convenience in their busy lifestyle, the research note shows that packaged food worth about AED11,148 million was sold in the UAE in 2013. Increasing demand is expected to take the packaged food market to AED14,078 million by 2018, with sales value growing at a CAGR of 4.78% during this period, indicating a long-term business opportunity for halal food in the UAE. The report identifies branding and franchising in this area as critical to UAE businesses looking to increase profit margins, and new opportunities for international expansion.
Globally, the halal food industry is growing in a number of markets mainly in countries in the Middle East and North Africa (MENA) region, South and Southeast Asia. Indonesia is the biggest halal food market with a market value of US$197 billion in 2012, according to the report. Turkey, with US$100 billion, is the second largest market.
The report highlights the potential for UAE businesses to source lower cost basic food products from a variety of countries across Africa, Asia and Latin America, which can then be further processed, packed and branded to be sold in international markets.
Dubai imports its meat from different sources. Based on Dubai Customs data, Brazil accounted for more than half of Dubai’s meat imports in 2013, supplying 166 thousand metric tons (TMT) of the total volume of 314 TMT to take 53% of market share, far ahead of the US at second place with 14%, the Dubai Chamber stated. The US exported 43 TMT while Australia was a distant third with 27 TMT, taking just 9% market share. Among the neighbouring countries, Pakistan and India each supplied 5% of the total volume, while Ethiopia cornered 3%.
Business opportunities in global halal food market are not limited to food production, but span the entire halal food value chain. This value chain includes businesses providing inputs such as seeds and fertilisers, farms raising livestock, businesses providing technology for food production, food processing facilities, logistics companies moving perishable food items, importers of food and finally retail outlets selling halal food products, the Dubai Chamber states in the report. Innovation across this value chain could therefore be a driver helping in the search for new markets and greater profits, it adds.
With economic indicators pointing to accelerating growth of the economy of Dubai and the UAE in the coming years, growing manpower requirements will lead to an increase in population, which in turn will raise imports of food, particularly meat which constitutes a major component of the population’s diet, the report states.
With economic indicators pointing to accelerating growth of the economy of Dubai and the UAE in the coming years, growing manpower requirements will lead to an increase in population, which in turn will raise imports of food, particularly meat which constitutes a major component of the population’s diet, the report states.