Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Halal Food Market – Insights
The term “Halal” is defined as permissible and in alteration it is used as lawful. Halal food is prepared following Islamic dietary laws and regulations that determines what is lawful, clean, and permissible. Global halal food market is driven by factors such as increasing Muslim population coupled with improvement in supply chain in the retail sector.
According to the World Health Organization (WHO), the global Muslim population is expected to grow twice as fast as non-Muslims by 2030. By 2030, Muslims are expected to comprise over a quarter of the global population. Moreover, according to the WHO, the global population of Muslims was around 2 Bn in 2017. The increasing use of halal products by the general population globally is driving growth of the global halal food market over the forecast period.
Lack of global regulatory body for certification of halal food products is expected to restrain growth of the halal food market in the near future. New halal standards are being developed by the European Committee for Standardization (CEN) for halal-based products, so as to prevent individual member states from creating their own national halal standards.
However, several EU nations are against un-stunned slaughter that is used in halal food. Countries such as Denmark, Norway, Latvia, and Sweden ban slaughter without stunning. This in turn, is expected to affect growth of the halal food production, thus hampering growth of the global halal food market.
The global halal food market was valued at US$ 715.0 Bn in 2018, and is expected to register a CAGR of 12.7%, in terms of revenue over the forecast period (2019 to 2027), to reach US$ 2,043.2 Bn by 2027.
Asia Pacific held the largest revenue share of 55.8% in the global halal food market in 2018, and is expected to maintain its dominance over the forecast period. Furthermore, Asia Pacific region is projected to be the fastest growing region in the global halal food market during the forecast period. The growth of Asia Pacific halal food market is attributed to high presence of Halal Certification authorities in Asia Pacific that are gaining trust of consumers. For instance, Department of Islamic Development of Malaysia has 56 halal certification bodies in 33 economies such as China, Taiwan, and various others. This helps halal certified products to develop extensive distribution and business across Asia Pacific.
Figure 1. Global Halal Food Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Based on product type, meat products segment accounted for the largest market share in the Asia pacific halal food market. The segment growth in the region is driven by the rising Muslim population in the region coupled with growing consumption of meat products. The trend is expected to continue over the forecast period. According to Cornell University Library’s publication in April 2017, the total Muslim population across the world was estimated to be 1.57 Bn during the 2016 to 2017, wherein 60.0% of the Muslim population resides in Asia Pacific.
Among distribution channel, the supermarket segment accounted for the largest revenue share of 44.6% in 2018, in the global halal food market. Growing presence of supermarket chains is fueling growth of the segment. For instance, according to United States Department of Agriculture (USDA) 2017, report, the total number of supermarkets in Egypt were 1,056 in 2016, and it is increased to over 1,215 in 2017.
Moreover, promotional and marketing activities in the form of offering lucrative discounts on products, wide variety of products to choose from, and fair presence of private label products are some of the key factors attributing to the rapid growth of this segment.
Figure 2. Global Halal Food Market Share (%), By End-use Industry, 2018
Source: Coherent Market Insights, 2018-19
Key industry players are focusing on various strategic initiatives such as mergers & acquisitions and expansion of their manufacturing facilities, to develop new products. For instance, in January 2016, Kawan Food Berhad invested US$ 25.8 million for the expansion of its production facility at Selangor Halal Hub in Pulau Indah, Malaysia. The objective was to cater to increasing demand for its products. Major players operating in the global 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.