Global Halal Products Market: Snapshot
The global halal products market has expanded at a promising pace in the past few years and is expected to embark upon a path of exponential growth in the next few years as well. Rising global population of the Muslim community and rising disposable incomes across some of the world’s prominent Islamic countries are expected to be the key drivers of the market. However, the market is expected to bear the brunt of the lack of transparency with respect to the use of ingredients for the pharmaceutical and personal care products and the absence of a globally uniform halal standard.
Transparency Market Research estimates that the global halal products market, which was valued at US$2.70 trillion in 2015, will rise to US$10.51 trillion by 2024, exhibiting a CAGR of 16.2% from 2016 to 2024.
Food and Beverages Industry to Constitute Bulk of Sales
Primarily, food and beverages are considered to be the key varieties of halal products. However, pharmaceutical, personal care products, and other products such as nutraceuticals, bakery, and food supplements also account for significant share of the halal products market. For this study, the halal products market has been examined for product types such as primary meat, processed food and beverages, pharmaceuticals, and cosmetics and personal care.
Of these, the segments of primary meat and processed food and beverages cumulatively accounted for nearly 50% of the market demand in 2015. The segment of processed food and beverages accounted for the dominant share in the global halal products market in 2015. Owing to the rising global demand for processed food, the halal processed food and beverages segment is expected to maintain its steady growth rate during the forecast period as well.
Despite the high growth rate of the processed food and beverages segment, independent halal butchers have an upper hand against their retail counterparts when it comes to customer services and customer trust in the absence of proliferation of modern retail outlets. Owing to this, the primary meat segment is also projected to witness exponential growth, especially in developing and under-developed economies in the next few years.
Thanks to Large Population of Muslims, Halal Products Market in Asia Pacific to Retain Dominance
From a geographic perspective, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East and Africa. Owing to the presence of a large number of certified manufacturers and large Muslim population, the halal products market in Asia Pacific is projected to have a significant positive impact on the overall development of the global halal products market in the near future. From a country-wise outlook, Brazil, the U.S., and India are some of the most significant exporters of halal products.
The market for halal products in Asia Pacific and Middle East and Africa regions cumulatively accounted for more than 80% of the global market in 2015. Asia Pacific constitutes of four of the top ten countries with the highest Muslim population, namely Indonesia, India, Pakistan and Bangladesh. Asia Pacific alone accounted for 47.74% of the global halal products market in 2015 and is also expected to witness the expansion of the halal products market at the most significant pace over the period between 2016 and 2024.
The halal products market is also expected to witness strong growth in Europe during the forecast period, primarily driven by the growing Muslim population the Western European nations such as Germany, France and U.K. The halal market demand is also anticipated to be augmented by the large Muslim population in Russia and CIS countries.
The key players operating in the halal products market can be distinguished by the end use industry they are catering to. The leading player in the halal products market for the food and beverage segment is Nestle S.A. For halal products for cosmetic and personal care application Unilever is the major player, besides several other notable players. Reckitt Benckiser Group plc is the major player catering halal products to the chemical and materials industry.
Global Halal Products Market: Overview
The global halal products market is a highly lucrative market with meat and processed food and beverage segments being the most attractive market in 2015. This market is also a highly diversified market ranging from food and beverage products to personal care and pharmaceutical products. The major companies operating in the field of halal foods captured a major portion of the market since halal food and beverages dominated the market in 2015. However, due to the absence of global halal standards, the major outlook of the companies is to get the halal certification from the regulatory organization from each country separately.
Global Halal Products Market: Drivers and Restraints
Growing Muslim population is one of the prime factors pushing the demand for halal products market at present. This is due to the fact that hala products market is not confined to food and beverages, since it has expanded into personal care, and pharmaceutical industries as well. It is estimated that 26.4% of the global population is expected to be Muslims by 2030 as compared to 19.9% in 1990. The growth rate is much faster compared to other religions. In addition to this, rising purchasing power of the Islamic countries due to the rapid growth in their economy, especially in Middle East and South East Asia is a major contributing factor to the growth of this market. Further, consumption of hala products among the non-muslim population is also on the rise.
Improvement of the retail sector is another major factor which is the currently driving the demand for halal products market across the globe. This was possible post improvement in the halal certification standards and the retail outlets selling halal certified products. Further, high degree of globalization and multilateral trade agreements has boosted the trade flow of halal products. This factor would ensure the smooth flow of halal products in the market.
However, the lack of uniformity for halal standards is a major factor barring the growth of the market. The Islamic regulatory bodies of different countries are different due to which the definition of halal may be different in different countries. Due to this, products accepted by the Halal Certification Board of one country may not be accepted in other countries.
Global Halal Products Market: Trends and Opportunities
However, the manufacturing of halal products is relatively slow in most of the countries with high demand. Due to the small scale manufacturing of halal products, most of the countries with high demand for high demand for halal products are heavily dependent on imports from other countries. In order to reduce the over dependency on imports, the Government of some of the countries with high Muslim population (or high halal demand) is offering lucrative incentive to companies to manufacture halal products and promote the use of halal certified goods. This factor would pose to be a suitable opportunity for the growth of the halal products market at the global level.
Global Halal Products Market: Segmentation
The market for global halal products is segmented on the basis of product types into primary meat, processed food and beverages, pharmaceuticals, cosmetics and personal care and others. In term of revenue, primary meat and processed food accounted for the major market share in 2015 and is expected to witness a major surge in its demand by the end of the forecast period. Pharmaceuticals held the second largest market share in 2015, but the market is expected to witness a drastic decline by the end of the forecast period.
On the basis of region, Asia Pacific and Middle East and Africa accounted for more than 85% of the total market in 2015 and they are expected to continue dominating the market throughout the forecast period.
Some of the key players operating in the field of halal products market include Nestle S.A., The Coca Cola Company, Kellogg’s Company, Krafts Food Group Inc., Unilever Plc, GlaxoSmithKline Plc and L’Oreal S.A. among others.
Global Halal Products Market: Scope of the Report
The report has been segmented by product type, and geography and it includes drivers, restraints and opportunities (DRO’s), halal certification, halal standards, market attractiveness by products of the global halal products market. The study highlights current market trends and provides forecast from 2016 to 2024. We have featured the current market scenario for the global halal products market market and identified future trends that will impact demand for hala products during the forecast period.
The global halal products market has been segmented into following types based on their product types including primary meat, processed food and beverages, pharmaceuticals, cosmetics and personal care and other halal products.
The global halal products market can be segmented as follows;-
- Global Halal Products Market, by Product Type
- Primary Meat
- Processed Food and Beverages
- Personal Care
- Other Halal Products
- Global Halal Products Market, by Geography
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa
- Rest of Middle East and Africa
- Latin America
- Rest of North America
- North America