Any market evolves based on the product offer and service position in the presence of current consumer demand and credible estimates for its growth. In this regard, the market for halal goods and services appears to be intriguing and expanding practically everywhere around the globe. Muslims account for almost 1.8 billion people worldwide, accounting for nearly 23% of the world's total population.
Consumers of halal goods and services include orthodox and ethnic Muslims, as well as those who have developed such consumption habits as a result of living in this socio-cultural environment or who have good neighborly relations with ethnic Muslims and a positive experience with halal goods.
What is Halal Food?
From the point of view of a devout Muslim, the “halal” mark on a food package is a guarantee that this product could be eaten. There are two main requirements for halal food:
- It is made using equipment and utensils that are clean in accordance with Islamic law and have not come into contact with "haram" food;
- It must not contain any ingredients that Muslims are forbidden to eat in accordance with Islamic law.
The “halal” mark will never appear on products that
- pork, mule, or donkey meat;
- meat from sick animals;
- meat of animals killed not according to the precepts of Islam;
- meat of rodents and predatory animals;
- meat and eggs of birds of prey;
- intoxicating plants.
Halal Food Market Size
The global halal food market size as of 2022 was about $1,300 billion. Halal food market size 2023 has grown strongly and now costs $1,500 billion.
The reasons for the growth of halal products are
different. On the one hand, awareness-driven consumer demand is on the rise; on
the other hand, economies with significant Muslim populations show rapid
growth, which makes them attractive as target markets.
Also, the increase is due to the fact that recently halal products have become popular not only among Muslims. More and more people regard it as a guarantee of safety and health benefits. Halal is now available in wholesale and retail chains; some stores even have special sections with halal products.
Halal Food Market Segmentation
Regarding product segmentation, the share of meat products prevails in the global halal market. This is not surprising because strict restrictions apply mainly to meat products.
In order not to be mistaken, the meat of herbivores
"with a cloven hoof" is allowed. Sharia does not prohibit eating fish
and seafood. There is no detailed explanation in the Quran as to why pork
should not be eaten. Perhaps this prohibition is prompted by common sense.
Pigs, especially on free grazing, often become
carriers of dangerous viral diseases. Even today, in the United States, a
country where the rules of hygiene in the food industry are observed with the
utmost care, Staphylococcus aureus bacteria are found in half of the pork
These microorganisms cause serious intestinal disorders if the meat is cooked incorrectly or if a person forgets to wash their hands after contact with raw meat. In addition, nutritionists also call for reducing pork consumption.
Vegetables and fruits are in second place in terms of percentage in the total amount of halal
food. Halal plant products are distinguished by the fact that no harmful
chemicals are used in their cultivation.
Another significant category in the global market for
halal products is dairy products, as well as cereals. In the
production of cheese and cottage cheese, dilution of dairy products with water,
replacement of milk fats with animal and vegetable fats, and the use of GMO
components are unacceptable.
Some of the major players operating in the halal food market are Nestle S.A., Cargill Incorporated, and Unilever.
Halal Food Market Trends 2023 - 2030
The number of Muslims in the world increases every year, and based on expert forecasts, by 2025 the share of halal products will be at least 20% of all products produced in the world, and by 2030 it may already be 25%. As for the numerical expression of these indicators, according to various forecasts, by the end of 2030, the halal food market will reach $1,872 billion to $2,300 billion.
The growth in the production of halal products is due
to an increase in demand for them among residents of large cities, since in
recent years there has been an intensive urbanization of the population.
Previously, the consumer was not familiar with the concept of "certified
product" or the "halal" label. At present, more and more people
want to purchase certified food products. The consumer puts safety and health
first. Halal products just position themselves as environmentally friendly. As
a result, several factors can be noted that cause an increase in the level of
consumption of halal food:
- strengthening of the trend towards confessional and national self-identification;
- increasing interest in national cuisine;
- strengthening in the minds of the consumers the idea of healthy eating;
The price of these products is often higher than the
average. The high price is associated with the following points:
- halal products are forbidden to be stored and transported together with other products, which leads to high logistics costs;
- the organization of the production process differs significantly from that of conventional products (method of slaughtering animals, cleaning of preparatory raw materials, etc.). For the production of halal, mainly environmentally friendly and healthy food raw materials are used. Soy and artificial additives are not added to the products; only natural meat is present.
In recent years, the market for halal products has been gaining momentum, and this trend continues to grow. Compliance with hygiene standards at all stages of production, including storage and logistics, is a strict requirement for halal products. The point of halal is not to restrict your needs by restricting a number of products, but to refuse what can harm you. That is why halal has become a kind of standard of quality these days. Also, many people choose halal products not for religious reasons but for the sake of their health.