Halal Food Market To Witness Surge In Demand | Hexa Research

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The Halal Food Market is anticipated to experience remarkable prospects from all ethnic backgrounds & religions. This can be credited to the product’s hygiene, ethical quality, and safety. Market competition is said to increase in the near future. The market will also turn more diverse regarding geographies and purchasing power.

Halal food is considered as one of the fastest growing global food product categories with the majority of the demand coming from Asia. The Halal Food Market is forecasted to witness tremendous growth opportunities from people of all religions and ethnic backgrounds owing to Halal food’s ethical quality, hygiene, and safety. The competition in this industry is expected to rise owing to demand diversity, quality and efficiency over the forecasted period. This market is anticipated to become more diverse in terms of purchasing power as well as geographically.

Halal is referred to as what is lawful and permitted in Islam and can be used in reference to lifestyle products and food which includes cosmetics and personal care, pharmaceutical items as well as clothing.

Muslim population which make up about a quarter of the global population and is expected to rise can be considered as the key growth factor for the Halal food market. The rise in the median age in countries with Muslim majority is anticipated to lead to an increased demand for a diverse range of Halal products and services which meet their lifestyle aspirations as well as their faith. Increasing disposable income among the Muslim population is expected to fuel demand for differentiated and new Halal food. Religious values in addition to Islam tenets to maintain self-respect and integrity, to safeguard future generations and to preserve life are expected to drive growth. Economic development in countries with large Muslim population coupled with a younger demographic in majorly Muslim populated countries makes this industry a growing one. The growing concern about unhealthy and unhygienic food is expected to shift the preference of Muslim as well as non-Muslim population towards Halal food and thus, the demand is likely to rise. Additionally, a certain degree of acculturation, respect for animal welfare and health concerns are also expected to be major drivers.

Nonfood Halal Market opportunities are also expected to rise owing to factors such as the presence of alcoholic substances or products derived from animals in cosmetics and personal care, rise in demand for Halal pharma and healthcare products and rise in Halal tourism which includes umrah, hajj, and pilgrimage. Other growth factors include the commercial potential for Muslim women’s clothing line that is in accordance with religious sentiments and rise in Halal logistics which preserves the integrity of the product from the farm to the table of the consumers.

The lack of a single unified global Halal standard might dampen the industry growth. Various countries have different certification standards owing to the existence of various Halal authorities which in turn leads to high supply chain cycle time and hinders product development. Maintenance of Halal integrity throughout its supply chain is expected to pose a major challenge with the rise in physical contamination of food products and fraudulent Halal certifications. Shortage of skilled workers in the Halal industry restricts production efficiency as well as innovation, thereby posing major challenges to the growth over the forecasted period.

Increasing population in different regions and a growing consumer base presents major growth opportunities for this market. Asia, which has the majority of the world’s Muslim population, is the frontrunner for Halal products. The Asian market is primarily driven by China, Indonesia, Pakistan, Malaysia, and India. Egypt, Turkey, and Indonesia offer a huge consumer base for halal products .Demand for Halal food is projected to double in the Middle East over the forecasted period. European Halal food market is expected to grow substantially owing to the sale of Halal food in big grocery retails.

Many companies in the food industry have started offering halal food to expand their business. Hypermarkets, supermarkets, small stores and butcheries are increasingly selling Halal food products. Food-service chains such as Nando’s and KFC have Halal outlets for their Muslim consumers. European Supermarket giants Auchan and Carrefour aggressively purchases and sells Halal food. Halal Expos held in countries such as Iran, Dubai-UAE, Turkey, Singapore and Malaysia is helping in expanding this industry. Online business portal and E-commerce might prove to be one of the best ways to penetrate the emerging market. DagangHalal.com, which is a Halal business portal supported by the Malaysian government, integrates Halal service providers, distributors, exporters, importers and manufacturers into the global Halal industry and is thus expected to augment the Halal industry. Zabiah.com and several other Halal blogs such as halalfoodguy.co, mybigfathalalblog.com and thehalalfoodblog.com are increasingly spreading awareness about the benefits of Halal food.

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