by The global Halal Food Market is estimated to be valued at US$ 879.6 Bn in 2022 and is expected to exhibit a CAGR of 12.80% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Halal food refers to food that adheres to Islamic dietary laws and regulations, including the way the animal is slaughtered, the ingredients used, and the processing methods. The market for halal food is driven by the growing Muslim population and their increasing disposable income, as well as the rising awareness among non-Muslim consumers about the quality, safety, and ethical aspects associated with halal products. The demand for halal food products has also been driven by the globalization of halal trade and the increasing number of halal certifications and standards in various countries.
Market Key Trends:
One of the key trends in the halal food market is the increasing demand for convenience and ready-to-eat halal products. With busy lifestyles and changing dietary preferences, consumers are looking for convenient food options that are also halal-certified. This has led to the launch of a wide range of ready-to-eat halal products, including frozen meals, snacks, and beverages. Manufacturers are also focusing on innovative packaging solutions to ensure the convenience and quality of these products. The trend towards convenience and ready-to-eat halal products is expected to continue in the coming years.
Porter’s Analysis
The halal food market is expected to witness significant growth over the forecast period, with a projected CAGR of 12.80% from 2023 to 2030. This growth can be attributed to various factors such as the increasing Muslim population, rising awareness about halal certification, and the growing demand for halal products in both Muslim and non-Muslim countries.
Threat of New Entrants: The threat of new entrants in the halal food market is relatively low. This is mainly due to the complex nature of halal food production, which requires strict adherence to Islamic dietary laws and certification processes. Additionally, established companies in the market have strong brand recognition and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining Power of Buyers: The bargaining power of buyers in the halal food market is moderate. While customers have a wide range of options when it comes to halal food products, their choices are often limited by the availability of certified halal options. This gives some power to the buyers, but the limited options and strong demand for halal products allow suppliers to maintain competitive pricing.
Bargaining Power of Suppliers: The bargaining power of suppliers in the halal food market is relatively high. Halal food suppliers need to ensure that their products meet strict halal standards, including sourcing ingredients from halal-certified suppliers. This often results in a limited number of suppliers, giving them more bargaining power when it comes to pricing and terms.
Threat of New Substitutes: The threat of new substitutes in the halal food market is low. Halal food is specifically tailored to meet the dietary requirements of Muslims, and there are no direct substitutes that can completely replace halal products. While there may be some alternative options available, the demand for halal food remains strong and is not easily replaceable.
Competitive Rivalry: The competitive rivalry in the halal food market is high. There are several key players operating in the market, including Cargill Inc., Al Islami Foods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., and Saffron Road Food. These players compete on various factors such as product quality, brand reputation, and distribution networks. The market is highly fragmented, with numerous small and medium-sized enterprises also vying for market share.
Key Takeaways
The global Halal Food Market Growth is expected to experience significant growth over the forecast period, driven by factors such as a growing Muslim population and increasing awareness about halal certification. The market is characterized by a high degree of competition, with several key players and numerous smaller companies operating in the market.
In terms of regional analysis, the Asia Pacific region is expected to be the fastest-growing and dominating region in the halal food market. This can be attributed to the large Muslim population in countries like Indonesia, Malaysia, and Pakistan, where the demand for halal food is high. Additionally, the Middle East and Africa region also contribute significantly to the halal food market, given its predominantly Muslim population.
Key players operating in the halal food market include Cargill Inc., Al Islami Foods, QL Resources Sdn Bhd, Haoyue Group, Kawan Food Berhad, BRF S.A., and Saffron Road Food. These players have established themselves in the market through their strong brand reputation, product quality, and extensive distribution networks.
Overall, the halal food market presents lucrative opportunities for both existing players and new entrants. The market is expected to witness substantial growth in the coming years, driven by the increasing demand for certified halal products worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
