Europe Halal Food & Beverage Market Outlook, 2029

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. 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.

According to the research report “Europe Halal Food and Beverage Market Outlook, 2029,', The market is projected to reach market size USD 216 Billion by 2029. 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. 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. 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.

The Europe halal food and beverage market is segmented across a diverse array of product categories, each contributing to the sector's overall growth and popularity. At the forefront of this expansive market is the halal meat, poultry, and seafood segment, which dominates the landscape with its substantial market share and widespread consumer appeal. This leading category encompasses a wide variety of high-quality, religiously-compliant protein sources that cater to the preferences and dietary requirements of the region's Muslim population. Beyond just meat, the halal food market in Europe also encompasses other essential food groups, such as dairy products, fruits and vegetables, grains, and beverages.

Halal milk and milk products, for instance, provide consumers with a range of nutritious, Sharia-approved dairy options, while the halal fruits and vegetables segment ensures access to fresh, unadulterated produce. Similarly, the halal grain products category addresses the need for ethically-sourced, permissible staple foods, and the beverage products segment satisfies the demand for Halal-certified drinks.

The halal food and beverage market in Europe is divided into several sales channels, notably hypermarkets/supermarkets, traditional retail outlets, online platforms, and other avenues. Among these, the hypermarket/supermarket and traditional retail segments are currently the most prominent, capturing the largest market shares. Hypermarkets and supermarkets have become the preferred shopping locations for many European consumers seeking halal-certified food and beverage options, thanks to their wide-ranging product offerings and accessible locations.

These large-format retailers can capitalize on their economies of scale and purchasing leverage to provide competitive pricing on a broad spectrum of halal products, including fresh meats, produce, and packaged snacks. In contrast, the traditional retail segment, which comprises independent grocers, butchers, and specialty shops, continues to be an essential component of the European halal market. These smaller, local businesses often have established connections within their communities, enabling them to deliver personalized service and specialized product assortments that cater to the distinct preferences of halal-observant customers. As the appetite for halal products increases throughout Europe, both hypermarket/supermarket and traditional retail channels are well-equipped to seize this burgeoning market opportunity and uphold their dominant positions.

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 2018 to 2023. 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 2024 to 2029, 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. 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.

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: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Countries covered

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

Aspects Covered In the Report

• Market Size By Value for the historic time period (2018-2023)
• Market Size By Value for the forecast time period (2024-2029)
• 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 (2018, 2023 & 2029F)

The approach of the report

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise.

This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

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.

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