The Global Halal Foods Industry - Using a Wave of Growth

Halal certification

The literal that means of the Arabic term 'Halal' is permissible. It is used in reference to foods and drinks that are permissible for Muslims beneath Islamic Regulation, as outlined in the Koran. It lays down directions specifying what food can be eaten as properly as the approach of planning, addressing mainly meat products and animal tissue. For example, the Islamic kind of slaughtering animals requires killing by a minimize to the windpipe, carotid artery and jugular vein.

Muslim shoppers now lead to a expanding need for substantial top quality and different Halal foodstuff. The Halal certification is a worry for the one.six billion international Muslim inhabitants due to the fact several Muslims reside in non-Muslim bulk international locations in which Halal-licensed foodstuff is at instances difficult to locate or where the authenticity of the certification may well be questionable.

Development prospective

What is driving the fast progress in the Halal food market?

Rise in Muslim populace

According to investigation unveiled in 2015, Muslims at the moment make up about a quarter (23.2 p.c) of the global population. The review additional states that the rise in the Muslim inhabitants is due to a youthful demographic - numerous Muslims reside in international locations with low median ages like Indonesia, India and Pakistan - and on-likely advancements in toddler mortality rates. With the rise of the Muslim consumer, foodstuff-support chains these kinds of as KFC and Nando's now have Halal stores, while Pizza Express utilizes Halal rooster and supermarkets in Europe are stocking up on frozen Halal meals.

Increased disposable revenue

Increasing earnings levels amid the Muslim population are fuelling desire for new and differentiated Halal foodstuff. A expanding Muslim populace as well as economic improvement in nations with large populations of Muslims makes this a worthwhile phase to make investments in. For illustration, the combined disposable income of an American Muslim in 2012 amounted to USD98 billion.

Expanding recognition and demand

The consciousness issue is at perform for both the Muslim as properly as non-Muslim inhabitants. The former is turning out to be increasingly mindful of their spiritual obligations while some specialists imagine that the latter are anticipated to change in direction of Halal foods due to growing considerations about unhygienic and unhealthy foodstuff. For instance, Halal meat accounts for about fifteen for every cent of complete meat sales in the United Kingdom (2.6 billion British lbs .), which is significantly higher than the proportion of Muslims in Britain (which is approximately 5 for every cent).

Non-foods Halal marketplace chances

Halal items are not all relating to meat. The evolving life-style and enhance in purchasing powers of Muslims suggest that there is developing demand for merchandise that conform to Islamic nutritional regulations. As the Halal market proceeds to increase over and above the foodstuff sector there are numerous industries that stand to advantage which contain:

Cosmetic and individual care

More buyers are conscious that cosmetics may contain alcoholic substances or products derived from animals forbidden by Islam. In accordance to 2013 data, the Halal cosmetics and individual care marketplace is worth about USD13 billion with an once-a-year growth fee of twelve %.

Pharmaceutical and healthcare

Halal pharma and health care items are in need not just from Muslims but also from non-Muslims who value wellness merchandise that do not hurt the human body in the extended-phrase. That is why business gamers are willing to modify elements and production techniques to cater to this desire. As at 2013, the Halal pharmaceutical industry was approximated at USD34 billion - and increasing.


Lately gaining recognition, this type of tourism refers to hospitality companies and goods in accordance with Islamic procedures. Historically, Halal tourism has been frequently connected with umrah, hajj and pilgrimage. The shifting choices of Muslims for journey places, developing affluent middle-course buyers and increase in degree of interconnectivity make journey practical. This places the Halal tourism market place at USD137 billion in 2014.


Trend properties in Paris and Milan have observed the industrial prospective for Muslim women's garments that respects religious sentiments yet incorporates components of great taste and style. In accordance to a report in 2012, the Muslim fashion industry would be equal to USD96 billion if 50 percent of the Muslims' throughout the world (1.6 billion) expended USD120 on apparel each year.


Halal logistics also has very clear possible for expansion. This requires paying out near interest in the offer chain the place the integrity of the product is preserved from the farm to the table of the buyer. An intercontinental Halal logistics regular is consequently essential. In accordance to 2014 data, this industry is projected to grow at a Compound Once-a-year Expansion Charge (CAGR) of twelve.six per cent to reach about USD539 million.

Primary Halal markets

As the Halal market emerges as a new expansion sector, a increasing client foundation and enhanced growth in different areas will give halal industry to a lot more opposition. The key locations where expansion likely is obvious consist of:


With practically a single billion Muslims or near to two thirds of the world-wide Muslim populace, Asia is at the forefront for Halal products. Asia's Halal industry has been largely pushed by India, Malaysia, Pakistan, Indonesia and China. With nearly 1 billion Muslims or near to two thirds of the world-wide Muslim inhabitants, Asia's Halal market has been mostly driven by India, Malaysia, Pakistan, Indonesia and China.

With almost a single billion Muslims or near to two thirds of the global Muslim population, Asia's Halal marketplace has been mostly driven by India, Malaysia, Pakistan, Indonesia and China. This market is value roughly USD420 billion (in 2013) and is growing rapidly. Some of the key countries within the Asian location that have been environment the direction for the regional Halal marketplace are:


The place with the world's greatest Muslim populace is, unsurprisingly, a large Halal merchandise market place, believed at USD10 billion every year in 2013 and observing yearly progress of seven-10 for every cent.


Malaysia's Halal market place was valued at USD1.9 billion in 2013. A essential contributor to the country's economic progress, the Halal sector is projected to add up to five.eight per cent of the nation's Gross Domestic Product (GDP) by 2020, up from two per cent in 2013.


Pakistan's share of the world-wide Halal foods market place in 2013 was a dismal .26 for each cent of the USD440 billion whole. No question this is since Pakistan produces considerably of its meals domestically, with out a wonderful deal of Halal food import and export. Nevertheless, Pakistan has wonderful prospective to become a Halal food hub. This is thanks to its huge Muslim populace as well as its strategic geo-financial place, which provides it access to 40 million Muslim shoppers across the Central Asian republics and Afghanistan.


Thailand has turn into the world's fifth greatest Halal meals producer - it has a five.6 for each cent share of the global Halal foods market place, valued at USD5 billion yearly. The Thai government's ongoing efforts to reinforce the Halal sector resulted in the institution of the Halal Common Institute of Thailand in 2003 to guarantee correct improvement and certification for national Halal foodstuff. These requirements comply with Islamic regulation as effectively as intercontinental foods good quality requirements.Thailand has turn into the world's fifth greatest Halal foodstuff producer.

Center East

The Halal foodstuff business in the Center East was worth about USD20 billion in 2013. The Middle East imports 80 per cent of its meals needs, creating it a key section for international Halal foodstuff. Once-a-year foods imports are projected to double from USD25.8 billion in 2010 to achieve USD53 billion in 2020 - with complete Halal meat imports exceeding one million metric tons each year.


The burgeoning European Halal foodstuff market has manufactured numerous Western nations consider discover. Large grocery merchants in the United Kingdom like Sainsbury's, Morrisons and Tesco market Halal food ranges at picked merchants, spanning categories which selection from baby food to Halal meat.

Challenges in advance

The worldwide Halal food industry looks to present numerous company opportunities. What highway blocks need to investors preserve in mind?

Global Halal common

The lack of a solitary unified global Halal common is a dampener to business progress. Every country has differing certification expectations due to the existence of various Halal authorities. A international Halal common and certification system would offer assurance to shoppers, lessen the require for several certifications, expedite item growth and decrease the provide chain cycle time.

New Muslim shoppers

As at 2011, approximately sixty for each cent of the international Muslim populace was below 30 years of age. The median age in Muslim-greater part nations around the world is predicted to get to 30 by 2030. This youthful technology will need a varied selection of Halal consumer items and providers to satisfy their life style aspirations in accordance with their religion. The preferences of these buyers can also be expected to evolve over time, pointing to the want for innovation.

Halal integrity from 'farm to table'

Preserving integrity all through the Halal source chain has turn into a significant worry for Muslim customers, with fraudulent Halal certification and bodily contamination of meals merchandise on the rise. Therefore, source chain integrity wants to be safeguarded correct from the point of animal slaughter and such as the transportation, storage to the dealing with of Halal merchandise.

Human capital

There is a scarcity of expert employees in the Halal sector. Furthermore, a lot of market gamers have considerable space to develop in respect of creation effectiveness as nicely as innovation.

What lies in advance?

As industry players race to seize a share of the USD700 billion world-wide Halal meals market, opposition will increase. This will place a high quality on efficiency, high quality and diversity in the years in advance. The Halal certification ought to be witnessed as just the starting of the approach of creating aggressive gain.

The Halal meals market place will also turn into more assorted, each geographically as effectively as in phrases of buying electrical power and consequently consumer sophistication. For case in point, the sale of Halal food in the U.S. has been on the increase, observing a 70 per cent increase considering that 1995. In Russia, 2011 noticed the creation of sixty five,000 tons of Halal meat. China is also rising as a Halal market, with over 23 million Muslims living there.

Over all, the African continent is broadly acknowledged to be the Halal item marketplace of the foreseeable future, because of to a big and developing consumer base of African Muslims as nicely as brisk financial growth in the continent. For occasion, Kenya has about 150 firms operating with Halal certification from the Kenya Bureau of Halal Certification.

Leave a Reply

Your email address will not be published. Required fields are marked *