Halal Food And Beverage Market Size, Share & Trends Analysis Report By Product (Grain Products), By Distribution Channel (Hypermarket & Supermarket), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global halal food and beverage market size was valued at USD 774.93 billion in 2021 and is expected to witness a compound annual growth rate (CAGR) of 3.6% from 2022 to 2030. The increasing Muslim population worldwide and growing concern regarding food safety, hygiene, and reliability will drive the market in the forecast period. According to an article published in Pew Research Centre, April 2019, there are 1.8 billion Muslims globally. With an increase in the demand, manufacturers have widened their product portfolio by introducing several value-added halal food items, including pasta, vegetable, juice, milk, yogurt, and cheese. Further, the production of halal-certified foods by key players in the market will increase product visibility among consumers.

The disruption of the food supply chain owing to the rapid spread of COVID-19 affected the food and beverage market including the halal food industry. Leading manufacturers worldwide experienced a reduction in labor and disruption in the import and export of halal food which significantly affected the consumption and sale capability. Also, the slowdown in demand for meat products due to safety and hygiene concerns during the pandemic negatively influenced the industry. According to an article published in Bloomberg, July 2021, In the U.S., sales of meat at grocery stores were down by more than 12% compared to the year before the pandemic. However, inclination towards nutritious and safe quality food is expected to boost the market in the forecast period.

The rising interest among consumers in the consumption of vegan food & beverage along with product introduction by halal manufacturers for these conscious consumers’ is expected to bolster the market growth from the year 2022 to 2030. Key players in the market are launching vegan products due to changing consumer perceptions of animal slaughter and suffering. For instance, in January 2021, AI Islami Foods, and United Arab Emirates (UAE) based halal food giant, launched a plant-based burger. The product is made from a combination of sunflower protein sourced from an organic non-GMO farm, fava beans, and peas. The initiative was taken in response to the growing demand for vegan food, which will further integrate well with the market growth trend.

Islam is the fastest-growing religion, especially in Asia Pacific, which will positively affect the demand for halal products in the region. According to an article published in China Highlights, in February 2022, there are almost 25 million Muslims spread across China and are further concentrated in small groups with Islam being the major community. The growing awareness among Muslims regarding the need and necessity to consume non-haram food owing to their religious sentiments is expected to drive the market. Some of the brands offering halal-certified products in the region are Ecolite, Saffron Road, Prasuma, Keventer, Prima Agri-Products, Nestle, and Pampangas Best.

Key manufacturers in the market are adopting various marketing strategies, such as product innovation, product line expansion, and acquisition, to produce halal foods and strengthen their market position. For instance, in May 2021, Kimly, a coffee operator acquired a 75% stake in Tenderfresh, a food business for USD 54 million. The strategy was amended to expand the industry in Singapore and other neighboring countries that will be available across restaurants, food stalls, and kiosks in the country. Also, Tenderfresh produces halal-certified products which will leverage a competitive edge for these products in the industry.

Halal cuisine has grown in popularity among Muslim and non-Muslim consumers in recent years as it has evolved from a religious identity mark to a guarantee of meals safety, hygiene, and reliability. According to an article published in the United States Department of Agriculture (USDA), in April 2021, the Indonesian government enacted required halal labeling and certification laws, resulting in which consumers increasingly choosing these foods. Manufacturers have broadened their product line in response to increased demand by developing many value-added food items. For instance, in November 2019, Marks & Spencer launched its own-brand halal-ready meals, products including chicken arrabbiata, chicken and mushroom tagliatelle, chicken and leek bake, and chicken hotpot, chicken jalfrezi, and chicken tikka masala. These meals will be available in U.K., Dubai, and Singapore outlets, operated by Al-Futtaim.

Product Insights

The meat & alternatives segment held the largest market share of 51.6% in 2021 and is expected to maintain dominance during the forecast period. Growing consumer preference for bacteria-free meat owing to health, hygiene, and safety concerns, the demand for these products will witness a rise in the foreseeable period. According to an article published in the National Library of Medicine, in June 2020, 70% of consumers in England prefer halal meat over normal meat. Also, 50.8% of consumers eat meat once a week, 45.6% once a day, 3.2% once a month, and 0.4% eat meat occasionally. Moreover, respect for the welfare of animals, and a degree of acculturation are also some of the vital influencers in the growth of the segment.

However, grain products are projected to register the fastest growth during the forecast period with a CAGR of 4.3% from 2022 to 2030. Cereals or grain products are gaining momentum among consumers due to their nutritional benefits. These products include wheat, rice, pasta, bread, and breakfast cereals. According to an article published in Multidisciplinary Digital Publishing Institute (MDPI), in February 2022, 16% of halal-certified grain foods were consumed by buyers across the world. Many key brands in the market are following halal as a new concept in marketing. For example, Kellogg’s cereals are available with the halal symbol on the package to garner more consumers preferring health benefit products, especially in the Muslim community.

Distribution Channel Insights

Hypermarket & supermarket was a larger distribution channel with a market share of around 75.5% in the global revenue in 2021. An increasing number of these stores across various regions have experienced a surge in the distribution of halal food in the market. According to an article published by Taylor & Francis Online, in October 2020, 16% of consumers from educated big families, 13% from educated small families, and 5% of young residents prefer to buy these products from national supermarkets in Norway. Further, the convenience of physically verifying halal-certified products in these stores will vouch for the growth of this segment.

The online distribution channel is anticipated to register faster growth during forecast years with a CAGR of 5.0% from 2022 to 2030. The rapid digital transformation brought on by Muslim and non-Muslim consumers looking for healthy, flavorful, and convenient meals that can be delivered at home, will boost the segment growth. For instance, in December 2021, Kitopi, a Dubai-based cloud kitchen raised USD 60 million in Series B funding in February 2020 and USD 415 million in Series C funding in July 2021 to help the company expand further in the Middle East and enter the Southeast Asian market. A further spike in-home deliveries during COVID-19 will support the growing trend for this segment.

Regional Insights

Asia Pacific made the largest contribution to the global market with a share of 60.3% in 2021. The migration of people from Muslim-dominated nations to other regions is a part of the vital dynamics responsible for the significantly rising Muslim population in the Asia-Pacific region. With the increase in the number of Muslims, the demand for these types of food has also increased, and this trend is anticipated to continue during the forecast period, hence, driving the market in this region. According to an article published by Pew Research Centre, in April 2019, India will host an 11.1% Muslim population in 2060 in the country. The rapidly increasing Muslim population and their psychological development are the main factors expected to drive the market during the forecast period.

Europe is the second-fastest-growing market and is expected to witness a CAGR of 4.7% from 2022 to 2030. The rising trend of certified products in the region is increasing product visibility among consumers, which will further bolster the market in the region. For instance, in 2020, O’Tacos, a France fast-food chain announced the launch of halal-certified French-style meat and vegetable wraps in Italy. Also, there are about 500 small-to-large-sized manufacturers in Italy with halal certification. Owing to the above trend and the launch of newly certified products the market is supposed to witness an upward growth shift in the region.

Key Companies & Market Share Insights

The halal food & beverage market is highly fragmented with the presence of a large number of regional and local players. Companies have been implementing various expansion strategies, such as partnerships and new product launches, to stay ahead in the game.

• For instance, in August 2021, Crescent Foods, an American pioneer in premium hand-cut halal meat and poultry products launched a turnkey foodservice program for college and university dining halls, nationwide. The company will offer a wide range of products including hand-cut beef, lamb, turkey (seasonally), and chicken products for on-campus dining, including restaurants.

• In January 2021, Nigeria leveraged on public-private partnership with OneAgrix for better Agriculture and Halal market access under AfCFTA. This will enable the country to gain better market access by using OneAgrix’s trading platform both regionally and globally.

• In February 2022, Chicken Cottage announced to enter the East African market through a franchising partnership agreement with Express Kitchen, a subsidiary of AAH Limited to expand their business line.

Some of the key players operating in the halal food and beverage market include: 

• Nestlé S.A

• Cargill, Incorporated

• Unilever

• American Halal Company, Inc.

• Al-Falah Halal Foods

• Prima Agri-Products

• One World Foods Inc.

• Midamar Corporation

• QL Foods

• Rosen's Diversified Inc.

Halal Food And Beverage Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the halal food and beverage market report based on product, distribution channel, and region.

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Meat & Alternatives

  • Milk & Milk Products

  • Fruits & Vegetables

  • Grain Products

  • Others

• Distribution channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Hypermarket & Supermarket

  • Departmental Store

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

    • Italy

  • Asia Pacific

    • India

    • China

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa