Halal Food Market Opportunities and Strategies to 2033

This report describes and explains the halal food market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global halal food market reached a value of nearly $1.49 trillion in 2023, having grown at a compound annual growth rate (CAGR) of 7.53% since 2018. The market is expected to grow from $1.49 trillion in 2023 to $2.92 trillion in 2028 at a rate of 14.38%. The market is then expected to grow at a CAGR of 12.70% from 2028 and reach $5.32 trillion in 2033.

Growth in the historic period resulted from the increased disposable income, strong economic growth in emerging markets, favorable government initiatives and increased health consciousness. Factors that negatively affected growth in the historic period were stringent regulations for halal food production.

Going forward, the increasing urban populations, expansion of the e-commerce industry, increasing muslim population, growth of the food and beverage sector and increasing globalization will drive the growth. Factor that could hinder the growth of the halal food market in the future include high halal certification cost.

The halal food market is segmented by product into meat and alternatives, fruits and vegetables, milk and milk products, grain products and other products. The meat and alternatives market was the largest segment of the halal food market segmented by product, accounting for 52.19% or $780.89 billion of the total in 2023. Going forward, the meat and alternatives segment is expected to be the fastest growing segment in the halal food market segmented by product, at a CAGR of 16.64% during 2023-2028.

The halal food market is segmented by distribution channel into supermarkets and hypermarkets, online stores, specialty stores and other distribution channels. The supermarkets and hypermarkets market was the largest segment of the halal food market segmented by distribution channel, accounting for 68.34% or $1.02 trillion of the total in 2023. Going forward, the online stores segment is expected to be the fastest growing segment in the halal food market segmented by distribution channel, at a CAGR of 17.23% during 2023-2028.

The halal food market is segmented by application into restaurant, hotel, home and other applications. The restaurant market was the largest segment of the halal food market segmented by application, accounting for 56.69% or $848.16 billion of the total in 2023. Going forward, the home segment is expected to be the fastest growing segment in the halal food market segmented by application, at a CAGR of 16.15% during 2023-2028.

Asia Pacific was the largest region in the halal food market, accounting for 51.60% or $772.09 billion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the halal food market will be Asia Pacific and Western Europe where growth will be at CAGRs of 14.69% and 14.59% respectively. These will be followed by Middle East and Eastern Europe where the markets are expected to grow at CAGRs of 13.98% and 13.97% respectively.

The global halal food market is highly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 1.31% of the total market in 2023. BRF Global was the largest competitor with a 0.36% share of the market, followed by Nestlé S.A with 0.34%, Tyson Foods Inc with 0.18%, Almarai Co with 0.17%, Cargill Incorporated with 0.11%, Unilever Group with 0.10%, QL Resources Berhad (QL Foods) with 0.05%, Allanasons Private Limited with 0.005%, Kawan Food Berhad with 0.004% and Saffron Road Food Company with 0.003%.

The top opportunities in the halal food market segmented by product will arise in the meat and alternatives segment, which will gain $905.34 billion of global annual sales by 2028. The top opportunities in the halal food market segmented by distribution channel will arise in the supermarkets and hypermarkets segment, which will gain $1.03 trillion of global annual sales by 2028. The top opportunities in the halal food market segmented by application will arise in the restaurant segment, which will gain $815.46 billion of global annual sales by 2028. The halal food market size will gain the most in China at $313.15 billion.

Market-trend-based strategies for the halal food market include focus on cutting-edge digital platforms facilitating access to halal-certified food options worldwide, focus on introduction of innovative halal snack varieties catering to regional taste preferences, focus on enhanced pet health through halal products featuring essential vitamins and minerals, focus on expansion of halal convenience foods to meet rising demand among busy consumers, focus on strategic partnerships and acquisitions among major players to enhance product offerings and focus on advancements in digital tools to support the verification and authentication of halal-certified products.

Player-adopted strategies in the halal food market include focus on strengthening business operations through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the halal food companies to focus on digital platforms and delivery apps, focus on regional and flavor innovation, focus on expanding halal-certified nutritional products, focus on expanding convenience food offerings, focus on digital innovation and transparency, focus on meat and alternatives, expand in emerging markets, focus on strategic partnerships and acquisitions, focus on competitive pricing strategies, focus on digital marketing channels, focus on building strong partnerships and alliances, focus on building strong relationships with retail channels and focus on strengthening relationships with restaurants.