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.
Halal Nutraceuticals & Vaccines Market – Insights
Halal pharmaceuticals are defined as products, which are manufactured using Shariah law and contain ingredients that are compliant by the Islamic religious law. Halal products are produced from Good Manufacturing Practices (GMP) standards with approved halal raw materials.
Halal nutraceuticals are products, which are derived from halal food sources containing nutritional value and provide health benefits. Nutraceuticals can be categorized into dietary supplement, functional food, and processed food. Dietary supplements are defined as liquids or capsules, which contain nutrients found in foods. They are consumed as a supplement in addition to the diet. Some examples of dietary supplements are vitamins, minerals, herbs, amino acids, and botanicals.
Halal vaccines are products in compliance with Shariah law and do not contain any raw materials from porcine origin, alcohol, and are non-toxic. Halal vaccines are processed in separate manufacturing units to avoid any cross contamination.
The global halal nutraceuticals & vaccines market is estimated to account for US$ 49,345.7 Mn in terms of value in 2019 and is expected to reach US$ 88,511.3 Mn by the end of 2027.
Global Halal Nutraceuticals & Vaccines Market: Drivers
Growing demand for halal nutraceuticals & vaccines among Muslim population is expected to boost growth of the global halal nutraceuticals & vaccines market over the forecast period. For instance, according to the 2019/20 State of the Global Islamic Economy report, Muslims spent US$ 2.2 trillion in 2018 across the food, pharmaceutical and lifestyle sectors that are impacted by Islamic faith-inspired ethical consumption needs.
Moreover, increasing Muslim population is also expected to aid in growth of the market. For instance, according to Pew Research Center’s population growth projections (August 2017) for religious groups, Muslim population worldwide is expected to grow more than twice as fast as the overall world population between 2015 and 2060.
Asia Pacific region held dominant position in the global halal nutraceuticals & vaccines market in 2018, accounting for 62.7% share in terms of value, followed by Middle East, and Africa.
Global Halal Nutraceuticals & Vaccines Market: Restraints
Absence of universally acceptable international standards is expected to hinder growth of the global halal nutraceuticals & vaccines market over the forecast period. The market has absence of universally acceptable standards to define GMP for halal medical products. Few countries have their own national standards such as Malaysia, Indonesia, and Brunei, while approximately 122 certifying bodies are active, globally. The existence of different standards creates misinterpretations among the nations, which leads to certain certifying bodies only following their own guidelines. For instance, Malaysia permits an alcohol content of 0.01% or less while Brunei permits 0.05% or less in the manufacturing process, which causes issues during international trade.
Moreover, high cost of halal compliant ingredients is also expected to hamper growth of the market. The availability of raw materials for halal pharmaceuticals is low, therefore several countries depend on imports, which increases the cost of end product.
Global Halal Nutraceuticals & Vaccines Market: Opportunities
Increasing government initiatives to promote foreign direct investment (FDI) in halal industry is expected to offer lucrative growth opportunities for players in the market. For instance, in November 2019, the government of Brunei announced its plans to encourage more FDI investment to Brunei Darussalam’s halal and Islamic sector halal industry.
Moreover, launch of halal vaccines is expected to increase vaccination rate in Muslim dominant regions. The rate of vaccination is low in Muslim dominating countries, such as Nigeria, Pakistan, Indonesia, Bangladesh, and Gulf countries due to various factors such as consumption of pork, alcohol, reptiles and others is forbidden according to Shariah law. Pharmaceutical companies are investing for development of halal vaccines to encourage uptake of vaccines among the Muslim population, which is expected to boost growth of the market.
Dietary supplements segment in the global halal nutraceuticals & vaccines market was valued at US$ 45,612.5 Mn in 2018 and is expected to reach US$ 87,547.1 Mn by 2027 at a CAGR of 7.6% during the forecast period.
Market Trends/Key Takeaways
Major countries worldwide are focused on increasing the number of halal nutraceuticals & vaccines. For instance, in 2017, the government of UAE signed a memorandum of understanding with Jafza, a DP World company, to attract over 75 major pharmaceutical firms by 2021 and double the number of manufacturing facilities from 17 to 34.
Major players in the market are focused on increasing awareness regarding halal procedures in the Industry. For instance, in February 2020, Duopharma Biotech Bhd announced its plans to collaborate with KPJ Healthcare Bhd to increase standard operating procedure (SOP) awareness among clinicians on the usage of SOP for halal pharmaceuticals.
- Halal certification is primarily managed by Islamic Food and Nutrition Council of America, which is indulged in product review, ingredients, preparation, and processing of the halal product
- The ISO 9000 standards are implemented to maintain the quality of the halal products
Global Halal Nutraceuticals & Vaccines Market: Competitive Landscape
Major players operating in the global halal nutraceuticals & vaccines market include, Chemical Company of Malaysia Berhad, Abbott Laboratories, Nestlé, Amway, Herbalife International of America, Inc., AJ Biologics Sdn Bhd., Agropur, Inc. (Davisco Business Unit), PT Kalbe Farma Tbk, Kotra Pharma (M) Sdn Bhd, and NoorVitamins.
Global Halal Nutraceuticals & Vaccines Market: Key Developments
Major players in the market are focused on enhancing their distribution channels. For instance, in September 2019, Herbalife Nutrition partnered with Tencent, a China-based internet and technology company, to help independent distributors more effectively sell products online.
Major players in the market are also focused on obtaining halal certification. For instance, in March 2018, Alibra, a Brazil-based food company, obtained the halal certification for part of its products.