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| Source: Grand View Research. Global halal food and beverage market revenue by product, 2016. |
The global halal food market is forecast to reach US$739.59 billion by 2025, says Grand View Research. The boost is from a growing Muslim population and substantially increased expenditure on food and beverage.
According to the consultancy, the concept of "halal" has transformed into universal conception that covers the entire concept of fresh, clean, and healthier production as well as services of food. "This is completely contradictory to the traditional notion, which was restricted to only slaughtering of animals according to Islamic law or merely free from swine and alcohol," the company notes. "It is no more a mere religious obligation but has moved beyond that to become a standard of choice for both Muslims and non-Muslims*."
Demand is driven by a "large, diverse, and educated" consumer base of approximately 1.7 million predominantly young Muslims globally, which is growing at nearly double the rate of the world population, Grand View said. The total Islamic population is expected to increase from 23% today to around 30% of the total world population by 2030.
The Asia Pacific and the Middle East and African regions are the top two regions contributing to the growth of the global market. The Middle East and Africa is home to over 327 million Muslims, Grand View said, while the overall average fertility proportion of Muslims in the Asia Pacific was three offspring per woman in 2012 to 2017 period - higher when compared to the region’s total average fertility rate of two children.
Meat and alternatives were the largest product segment in 2016 with a net market worth of over US$590 billion globally. According to the Organization of Islamic Cooperation (OIC), meat products is the preferred diet of Muslims. "The Islamic population in addition to the religious value is fascinated by several central doctrines such as to protect the forthcoming generation, to preserve life, to maintain integrity and self-respect. Moreover, respect for the welfare of animals, health consciousness and a degree of acculturation are also some of the vital influencers in the growth of the halal meat and meat products market," Grand View said.
On the flip side, the international halal standardisation industry is confusing, Grand View added. Certification bodies include government-owned and linked enterprises, independent halal certification bodies (HCBs), private organisations, national standards agencies, regional bodies such as the GCC Standardization Organization (GSO), the Association of Southeast Asian Nations (ASEAN), European Commission and international establishments including the OIC and the Standards and Metrology Institute for the Islamic Countries (SMIIC).
"The primary concern for the manufacturers is to determine the specific standard that is likely to offer them the best possible access to a target market. Also, these companies have to constantly update various certifications to optimise the trade process at several instances where these become mandatory for exports. Nevertheless, leading organisations for halal standardisation and accreditation have been taking steps to harmonise the standards," Grand View said.
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| Source: Grand View Research. Indonesia halal food and beverage market by product, 2014 to 2025. |
A major bilateral initiative to highlight is a collaboration between Abu Dhabi, UAE and South Korea, which has allowed South Korea to gain further access to the global halal food market. Korea agreed to adopt UAE halal certification standards in 2015. The UAE's halal national mark was introduced in 2014.
According to the State of the Global Islamic Economy, the Muslim consumer spending across halal food and lifestyle in 2014 was reported to be worth US$1.8 trillion and anticipated to increase to US$2.6 trillion by 2020.
According to the State of the Global Islamic Economy, the Muslim consumer spending across halal food and lifestyle in 2014 was reported to be worth US$1.8 trillion and anticipated to increase to US$2.6 trillion by 2020.
Meat and alternatives were the largest product segment in 2016 with a net market worth of over US$590 billion globally. According to the Organization of Islamic Cooperation (OIC), meat products is the preferred diet of Muslims. "The Islamic population in addition to the religious value is fascinated by several central doctrines such as to protect the forthcoming generation, to preserve life, to maintain integrity and self-respect. Moreover, respect for the welfare of animals, health consciousness and a degree of acculturation are also some of the vital influencers in the growth of the halal meat and meat products market," Grand View said.
On the flip side, the international halal standardisation industry is confusing, Grand View added. Certification bodies include government-owned and linked enterprises, independent halal certification bodies (HCBs), private organisations, national standards agencies, regional bodies such as the GCC Standardization Organization (GSO), the Association of Southeast Asian Nations (ASEAN), European Commission and international establishments including the OIC and the Standards and Metrology Institute for the Islamic Countries (SMIIC).
"The primary concern for the manufacturers is to determine the specific standard that is likely to offer them the best possible access to a target market. Also, these companies have to constantly update various certifications to optimise the trade process at several instances where these become mandatory for exports. Nevertheless, leading organisations for halal standardisation and accreditation have been taking steps to harmonise the standards," Grand View said.
Food safety and traceability has also become a major concern, Grand View said. "It is highly expected that every stakeholder must be fully accountable and responsible for procuring, handling, manufacturing, and quality control of halal foods," the company stated.
Key findings from the report include:
• The global halal foods industry was valued at US$436.8 billion in 2016 and is estimated to grow at a CAGR of 6.1% over the next eight years
• Milk and milk products such as processed milk, cheese, and yogurt are expected to be one of the primary product segments driving growth for the global industry
• Beverages such as carbonated drinks, packaged juice, and sweeteners with halal certification are expected to witness substantial demand over the forecast period. The segment is estimated to grow at a CAGR of over 4.9% in Turkey.
• Asia Pacific was the leading consumer region in 2016. Around 63% of the global Muslim population resides here. Indonesia and Malaysia together accounted for over 55% of the regional demand in 2016.
• Major companies actively operating in the global halal food industry include Nestlé, Glanbia Cheese and Kellogg's**
• Companies have been trying to strengthen consumer trust with several marketing campaigns trying to be transparent about their production process of packaged halal foods
Explore:
*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.
Key findings from the report include:
• The global halal foods industry was valued at US$436.8 billion in 2016 and is estimated to grow at a CAGR of 6.1% over the next eight years
• Milk and milk products such as processed milk, cheese, and yogurt are expected to be one of the primary product segments driving growth for the global industry
• Beverages such as carbonated drinks, packaged juice, and sweeteners with halal certification are expected to witness substantial demand over the forecast period. The segment is estimated to grow at a CAGR of over 4.9% in Turkey.
• Asia Pacific was the leading consumer region in 2016. Around 63% of the global Muslim population resides here. Indonesia and Malaysia together accounted for over 55% of the regional demand in 2016.
• Major companies actively operating in the global halal food industry include Nestlé, Glanbia Cheese and Kellogg's**
• Companies have been trying to strengthen consumer trust with several marketing campaigns trying to be transparent about their production process of packaged halal foods
Explore:
Buy the Halal Food and Beverage Market Size Report By Product (Meat & Alternatives, Milk & Milk Products, Fruits & Vegetables, Grain Products), By Region, And Segment Forecasts, 2018 - 2025 report from ReportBuyer (published February 2018)
Read Nestle's halal certification FAQ
*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.
**Glanbia announced halal certification in 2012. Kellogg's has dropped halal certification as of 2017.