The global Halal Food Market Growth Accelerated by increasing demand for Halal certified food products

Halal food refers to food products that are prepared according to Islamic dietary laws. Halal food include meat and poultry, frozen food such as pizza and burger patties, ready-to-cook food such as noodles, grains, cereals, snack foods, desserts and others. Halal food products are gaining popularity across the globe as they are healthier, hygienic and produced with mindfulness.

The global halal food market is estimated to be valued at US$ 992.19 Mn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Increasing Muslim Population offers high growth opportunity for Halal Food Market. According to Pew Research Center, the global Muslim population is expected to increase by 70% and reach 2.76 billion by 2050. The rise in Muslim population especially in non-Muslim majority countries like India, China, United States, France etc. offer significant growth opportunity for halal food producers and manufacturers. With increasing health consciousness and hygiene awareness among global population including Muslims, the demand for certified halal food is expected to rise substantially over the forecast period. The Halal food manufacturers can tap into this opportunity by expanding their production capacity and distribution network in countries with high Muslim population.

Porter’s Analysis
Threat of new entrants: The high capital requirement for large scale production and stringent regulation acts as a barrier for new players. However, the growing market size provides opportunity for small players.
Bargaining power of buyers: The presence of numerous buyers and brands gives consumers variety and bargaining power. Switching costs are low as products are commonly substitutable.
Bargaining power of suppliers: Key inputs like livestock, grains and packaging are commoditized. Thus suppliers have moderate bargaining power.
Threat of new substitutes: Substitute products include conventional meat, vegan foods and organic foods. However, dietary and religious preferences create product differentiation and brand loyalty.
Competitive rivalry: The market has numerous small and large players globally. Players compete on pricing, innovation, quality, range and certifications to gain market share.

SWOT Analysis
Strength: Growing Muslim population worldwide and their rising disposable incomes boost demand. Strong religious and health affiliations make the market fairly insulated from economic downturns.
Weakness: Lack of standardization increases compliance costs. Absence of economies of scale for small players affects competitiveness.
Opportunity: Untapped potential in developing nations presents scope for expansion. Innovation in plant-based alternatives and prepared meals present new avenues.
Threats: Stricter scrutiny from religious authorities on certifications impacts brand image. Protectionist policies can disrupt global supply chains.

Key Takeaways
The Global Halal Food Market Size is expected to witness high growth over the forecast period led by rising Muslim population and their growing expenditure power on food. The market size for 2024 is projected to reach US$ 992.19 Mn registering a CAGR of 6.9% between 2023 to 2030.

Regional analysis: The Asia Pacific region currently dominates the global Halal food market owing to large Muslim population in countries like Indonesia, Pakistan and India. Southeast Asian nations are fastest growing markets as they attract significant investments to cater to local demand as well as serve Halal products globally.

Key players operating in the Halal Food market are Cargill Inc., Al Islami Foods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., Saffron Road Food. These companies enjoy significant shares through varied product offerings, widespread distribution networks and Halal certifications from religious authorities in key markets.