According to the Modor Intelligence Report, the Middle-East and Africa market for halal food and beverage is projected to witness a CAGR of 5.8%, during the forecast period (2020-2025).1
- The growing awareness of halal food and its positioning as hygienic and healthy food among, both, Muslim and non-Muslim communities, resulted in an increase in the consumption and acceptance of halal food, which is expected to drive the demand over the forecast period.
- The assurance of integrity throughout the Halal supply chain has become a major concern for Muslim consumers, with fraudulent Halal certification and physical contamination of food products on the rise. Hence, supply chain integrity needs to be protected right from the point of animal slaughter and including transportation, storage, to the handling of Halal products.
Saudi Arabia Holds the Major Share in the Market
Saudi Arabia is likely to be the fastest-growing country, along with holding the largest market share for the growth of the halal food and beverage market, during the forecast period. The country is also the largest food and beverage producer in the Gulf region. However, the rapidly increasing population has resulted in surpassing the food supply and forcing the country to depend on imports, which fuels the demand for Halal food products. The Government of Saudi Arabia has been introducing new policies to support the production of more halal food. These policies are anticipated to make the country self-sufficient in food and beverage production and offer better opportunities for domestic producers to vary in livestock, such as poultry, camel, sheep, and dairy production.
Growing Muslim Population in the Middle East
The increased demand for halal-certified products in the past few years is attributed to the growing population of Muslims and the rise in disposable income to utilize these products and services, and the same factors are expected to further augment the growth of the market over the coming years. Finally, there is greater awareness among Muslims on the need and necessity to consume only Halal food. Halal products are gaining wider recognition not only due to meeting Sharia requirements, but also hygiene, sanitation, and safety aspects. Islam is now the fastest-growing religion in the world, thus the growing Muslim population, as well as economic development in countries with large populations of Muslims, makes the halal food and beverage a profitable segment to invest in to meet the demand.
According to the Fleishman-HillardMajlis report in the Next Billion, the Middle East imports over USD 30 billion a year, while countries of ASEAN export over USD 26 billion and import USD 13 billion.2
United States, France & Europe
It is estimated that the United States constitutes USD 16 billion annually to global halal food demand. In Europe, France registered the largest Muslim population of 4.7 million with estimated annual USD 2 to 4 billion, while countries like Germany, the United Kingdom and Netherlands are all increasingly spending more on halal food as well.
Brazil, South America
Brazil, the world’s largest exporter of beef and one of the largest producers of poultry products, exports between USD 2 to 6 billion in halal products every year, with 33 percent of poultry and 40 percent of its meat classified as halal.
A substantial portion of New Zealand lamb and beef is halal, with some estimates suggesting as high as 70 to 85 percent.
China, Indonesia, India, Pakistan, South & South East Asia
China, Indonesia, India, Pakistan and many countries in South and South East Asia have expanded their halal industries, with a competitive advantage because of labor costs, technology and huge marketplaces. These are large international and regional market players.
Indonesia, in particular, is the largest Muslim country in the world, and its rapid economic growth in recent times will enable it to become a significant market leader in the halal industry.
China, as is well known globally, is increasing becoming an important market for the world, and other than having a large and sizeable Muslim market, its non Muslim population love and welcome Halal products, which is known as 清真 or qingzhen, literally, pure, natural and original.
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Malaysia is aiming to become an international halal hub and has championed the World Halal Forum to create a platform for discussions around halal. It already is a known center for standardization, research, testing, production and international trade.
The country is also developing the Malaysian Standard for Halal Pharmaceutical – MS 2424:2010 – which provides a set of guidelines for halal pharmaceutical manufacturers looking to capture the global halal market.
The Mother Of All Hubs
In Singapore, despite the number of halal certifications from 2000 to 2014 increasing five fold, there is no single integrated halal qualified food hub to cater to local and export demands. As such, most of the halal food producing companies in Singapore remained relatively small and are unable to compete in the regional and international arena.
Therefore, the proposed Integrated Halal Hub will serve as a hub for such Halal services not only in Singapore but also regionally and the world as it can be replicated for service elsewhere.
1Modor Intelligence, Middle East And Africa Halal Food And Beverage Market – Growth, Trends, And Forecasts (2020 – 2025). Download The Report From Modor Intelligence.
2Fleishman-HillardMajlis, “The Next Billion: The Market Opportunity of the Muslim World” (2012)