Europe Halal Food & Beverage Market Outlook, 2027

Globally and in the European nations, the Muslim community is growing faster than the population due to their higher birth rate and conversions to Islam. Therefore, the surging Muslim population in Europe has strongly accelerated the demand for halal food and beverages across various countries in the region. France has the highest population of Muslims in this region. Furthermore, to a lesser extent, the rise in Muslim tourism in European countries has further supplemented the demand for halal food and beverages. As a result, the manufacturers and retailers respond to this demand by locally producing halal products or importing them from other countries. Even KFC, which has around 900 restaurants in the UK, claimed to serve certified halal food in around 130 outlets. The surging European halal market resulted in manufacturers expanding their businesses into niche sectors, including bread, biscuits, and cookies and spreads. Thus, the surging Muslim population in this region is projected to drive the market studied in the forecast period.

In the research report prepared titled- Europe Halal Food and Beverage Market Outlook 2027, a study has been presented discussing various intricacies of the halal food and beverages market backing with sufficient data points to support qualitative judgments. During the period of 2016 to 2021, halal foods and beverages market in Europe grew by nearly USD 29 Billion. It has been further forecasted in the report that the regional markets will be growing at a CAGR of 6% to 7% going into 2027. The research report presents insights from different geographies namely- Germany, the United Kingdom, France, Spain, Italy, Russia and the Rest of Europe. The market has been segmented on the basis of product lines to give a deeper understanding. The product lines which formed the basis of the study was - halal meat, seafood and poultry market, halal milk and milk beverages products, halal fruits and vegetables, halal grain products market, halal beverages, and halal confectionery, bakery, and other products. The various sales and distribution channels identified for halal products are hypermarkets/supermarkets, traditional retail channels in form of convenience stores, online channels, and other sales channels such as specialty stores, exhibitions, etc.

The European halal foods and beverages market is primarily driven by Russia which has about 40% market share in region’s market. This is supported by strong demographics as 45% of population living in Russia is Muslims making it the most Muslim populated country in the region. The other major economies in the region combined contribute about 20% of the market share in the region. In Europe, halal meat, poultry, and seafood products are the most demanded halal products but halal items in form of bakery, confectionery and other items have the fastest growth rate growing at a little less than 8% CAGR. Very similar to North America, supermarkets and hypermarkets drive the sales for halal foods and beverages products, but online sales channels were the fastest growing sales channels replicating the global pattern during the period of 2016 to 2021. However, it is to be noted that in Europe, halal specialty stores, exhibitions etc are forecasted to be the fastest growing sales channel in the region during the period of 2021 to 2027, poised to grow at more than 8% CAGR. In Europe, there is quite a huge opportunity for halal food companies. The manufacturers have been trying to make changes in the entire value chain, from raw materials and product developments, to finished product packaging, marketing, and spreading awareness about the benefits of consuming these products, through social media advertisements.

With the exponential growth of Europe’s Muslim population in recent years, thousands of tons of religiously slaughtered halal meat is now entering the general food chain, where it is being also consumed by the non-Muslim population as they are aware of the health benefits. To cater to this growing demand, an increasing number of retail formats are selling halal food products and it is mandatory for supermarkets to label foods containing halal meat. The retail chains like Tesco, Sainsbury’s, Marks & Spencer, and Waitrose sell halal food, including halal meat, confectionery, bread, cereals, and snacks. As the dynamics within the Muslim world change and globalization trends continue to shape consumers’ tastes, habits, and spending patterns across the world, the acceptance for halal-based foods, and beverages is projected to grow in Europe during the forecast period.

France has the largest population of Muslims in Europe and the halal offerings have also moved upscale, from the traditional neighborhood butcher who sold meat slaughtered in accordance with Islamic law, to a significant presence in French food industries, supermarkets, and even restaurants. Since the market demand for halal food is constantly developing, supermarkets have started increasing their services and dedicated more shelves to this kind of product. For instance, Casino France’s second-largest supermarket chain has even created its own halal product line, which it markets under the name Wassila. In France, the government is only involved in halal certification to the extent that it has designated the three main mosques as the only distributors of permits for halal slaughter.

The United Kingdom is estimated to be the fastest-growing as well as the largest market in terms of revenue during the forecasted years. The growth of the Muslim population in the country has been increasing rapidly. The halal food & beverage market holds a major share in the UK’s food & beverage sector. Various companies are making considerable investments in the halal food & beverage market. For instance, For Aisha, a halal baby food manufacturing company, is being funded through the UK’s Enterprise Guarantee Scheme. Additionally, many domestic companies are making efforts to upgrade and offer halal versions of traditional British meals. Also, the availability of halal food & beverages in independent and mainstream service outlets have been increasing in the UK. For example, KFC offers a wide halal menu in over 100 outlets, Nando’s in around 66 outlets, and Subway has 202 halal outlets in the country. Such strategic initiatives would help in propelling the halal food & beverage market growth in the country.

Germany has around 180,000 cattle farms and is the second-largest beef producer in Europe. Although, it is a non-Islamic country, Germany is boosting the demand for halal meat and other halal products by increasing its export to European and OIC countries. The country has an entrenched ecosystem that supports the food & beverage market. These factors are expected to fuel the market progressively.

The European halal food and beverage market is highly competitive, with several players competing to gain major shares in the market. The major manufacturers operating in the market are focusing on expanding their presence and developing various flavors in various product segments, as well as engaging in partnerships and mergers and acquisitions to cater to the growing needs of the consumers. The key players in the market are Nestle SA, Ferrero International SA, KQF Foods, JAB Holding Company, and Tahira Foods. Key players in the market have been indulging in strategies like product innovations and expansions to establish a strong consumer base and earn an esteemed position in the market studied. Furthermore, to serve the region's large Muslim population, companies are introducing new and innovative halal-certified products in the market studied.

Cargill, Inc. specializes in agricultural commodities, grains, trading of energy, the raising of livestock, and transport. The company produces vegetable oils & fats, glucose, starch syrup, and feed. It also produces halal products under the certification of the Islamic Food and Nutrition Council of America (IFANCA). The company is known for processing 100% halal-quality beef. It operates in 70 countries that include regions such as Europe, Asia-Pacific, North and Latin America, and the Middle East and Africa. On the other hand, Nestle is a major Swiss food and drinks company. Some of the major brands of Nestle are Nescafe, Kit Kat, Maggi, etc. The company has its headquarters in Vevey, Switzerland.

Recent Developments

1. In October 2021, Anuga Halal Market held a trade fair to present the diversity of halal foods and beverages in Europe. Anuga Halal Market covered the entire halal sector, ranging from meat and dairy products, chilled and fresh foods, cold drinks and hot beverages, fine foods, health foods, and organic produce.

2. In September 2020, Bilal Group introduced a new line of halal meal dishes under Cucina. This brand offers halal meals without the addition of sustainable packaging. With this brand, Bilal expanded its position in halal products and strengthened its position.

3. In January 2020, an online marketplace for halal products was launched in Italy called deenary.com, the first ever marketplace for all European Muslims. The aim behind the launch of the Deenary store was to provide a convenient shopping experience to the Muslim consumers of the region.

Covid-19 Impacts:

COVID-19 has eventually brought a decline in the availability of halal products in Europe. One product that has been down in the first few months and was challenging to find by Islamic communities is halal meat because many halal meat traders were closed. Usually, European Islamic communities buy meat directly from halal-labeled meat shops rather than supermarkets. This trend is because supermarket meat is not guaranteed 100% halal, as it is stored and transported with non-halal products. Lately, Islamic and non-Islamic consumers have shown a noteworthy interest in halal certification, despite being controversial among natives. To mitigate the risk of COVID-19-like outbreaks, a change in consumption culture and strategy that improvises more on halal eating is expected to be practiced more among natives.

Major Companies Present In the Market

Unilever, Cargill, Nestle S.A., BRF S.A., Tahira Foods Ltd.

Considered In the Report

• Geography: Europe
• Historical year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecasted year: 2027

Countries covered:

• Germany
• UK
• France
• Spain
• Italy
• Russia

Aspects Covered In the Report

• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2022-2027)
• Market Share by Product (Halal Meat, Poultry & Seafood, Halal Milk & Milk Products, Halal Fruits & Vegetables, Halal Grain Products, Beverage Products, Others)
• Market Share by Sales Channel (Hyper Market/ Supermarket, Traditional Retail, Online, Others)
• Market Share by Country (2016, 2021 & 2027F)

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the halal food & beverage industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.