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  • To Be Published : Nov 2023
  • Code : CMI757
  • Pages : N/A
  • Formats :
      Excel and PDF
  • Industry : Consumer Goods

The recent past has witnessed a rampant rise in demand for halal-certified products. This is mainly attributed to rampant growth in demand from end-use industries such as meat, beverages, and processed food. The halal products market is also diversifying from food segment to healthcare, pharmaceutical, toiletries, and other personal care products.

The growth of Muslim population is the major driving factor of this market. Moreover, the rising development in the East and South East Asian countries has led to the increase in purchasing power among the population, further, augmenting the growth of Halal products market. The improvement in the supply chain in the retail sector is adding to the demand for Halal food products thereby adding to the growth of the halal products. Further, multilateral trade agreements and rise in consumption of halal products by other communities has boosted the flow of halal products in the global market However, the major restraint of halal products is the absence of standards of halal products globally and the companies operating in this field are required to seek certification from each country separately.

Halal Product Market Taxonomy:

On the basis of product type, the Halal Product Market can be classified as:

  • Processed food and beverages.
  • Halal meat products
  • Halal convenience food
  • Halal dairy products
  • Halal sauces, seasoning and condiments
  • Others
  • Pharmaceuticals
  • Cosmetics and personal care
  • Skin Care Products
  • Color Cosmetics Products
    • Lip Care Products
    • Eye Care Products
    • Nail Care Products
    • Face Care Products
  • Hair Care Products
  • Fragrances Products
  • Others

On the basis of distribution channel, the Halal products market can be classified as:

  • Supermarket
  • Hypermarket
  • Convenience Store
  • Retail Store
  • Specialty Store
  • Online store.

Pharmaceuticals and Cosmetics are the new addition to the Halal Products market along with health supplements. For instance, L’Oreal has obtained halal certification for its ingredients to cater the demands. Moreover, the online platform has seen major growth due to increased smart phone penetration in the emerging countries.

Halal Products Market outlook:

  • Asia pacific market is expected to show significant growth during the forecast period owing to the rise in the Muslim population. Moreover, the growth of retail sector in countries like India, China, Malaysia, and Indonesia are further increasing the growth of Halal products in Asia pacific.
  • The halal products market in Europe has a steady growth owing to the less Muslim population in the region. However, Halal product market is rising due to increase in number of manufacturers in the region and non- Muslim consumers getting attracted due to the products safety and hygiene.
  • The Middle East and Africa are expected to have substantial market growth in the forecast year owing to the increase of Muslim population in the region. Moreover, the rise of development in the countries and the disposable income has been a major driving factor for the growth of Halal product market. In addition, the increasing number of the certified Halal product producers has substantially augmented the demand in the area.

The major players are adopting various organic and inorganic growth strategies. For instance, in 2014, Warees Halal, a division of MUIS’ subsidiary Warees Investments Pte Ltd, has been given the task of helping companies to attain certification and carries out audits for MUIS.

Key developments:

In January 2017, Cargill Meat Solutions Corp. acquired halal certification from The Islamic Society of California Branch for processing and packaging of halal beef.

In April 2014, PT Cargill Indonesia Cocoa and Chocolate Gresik announced plans to produce halal cocoa products, which includes ensuring all materials and techniques are halal certified and to arrange and implement Halal Assurance System.

For instance, in March 2016, Al Islami Foods opened new halal food processing factory in Brazil to expand its portfolio.

In September 2019, Nestlé Malaysia expanded Chembong Factory in Negeri Sembilan, to establish the facility as the world’s largest MILO Manufacturing site and global Centre of Excellence. MILO Manufacturing site produces nutritious and high-quality made-in-Malaysia Halal products. The expanded facility will provide the products to domestic market as well as export to over 20 countries.

For instance, in January 2014, Kellogg’s opened new halal snacks manufacturing in Malaysia with investment of US$ 130 Million. The plant will produce halal-certified Pringles crisps snack to the Asia Pacific market.

The major players in the Halal product market include Nestle S.A., Cargill , The Coca Cola Company, Kellogg's Company, Krafts Food Group Inc., Unilever Plc, GlaxoSmithKline Plc, Al Islami Foods, L'Oreal S.A.

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