Halal, in the Arabic language, stands for lawful or permissible. Due to unclean food processing & packaging methods, food might get contaminated with bacteria or pathogens. Halal foods are manufactured with stringent halal regulations, which do not allow any haram ingredients to be mixed with the main product. Therefore, halal food products are gaining popularity among consumers, as they offer advantages over most conventional food products.
MENA halal food market was valued at US$ 192.6 Billion in 2022 in terms of revenue, exhibiting a CAGR of 9.15% during the forecast period (2023 to 2030).
Drivers
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 boost the MENA halal food market growth over the forecast period. 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, United Arab Emirates (UAE)-based halal food giant, launched plant-based burger. The product is made from a combination of sunflower protein sourced from an organic non-genetically modified organisms arm, fava beans, and peas. The initiative was taken in response to the growing demand for vegan food, which will further fuel the MENA halal food market.
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 sales capability. Moreover, reduced demand for meat products due to safety and hygiene concerns during the pandemic negatively affected the industry. For instance, in July 2021, in the U.S., sales of meat at grocery stores were down by over 12% compared to the year before the pandemic.
Figure 1. MENA Halal Food Market Value Share (%), By Product Type, 2021
Market Restraints
Stringent halal regulations such as UAE.S OIC/SMIIC 3 are major challenges for small and medium-scale manufacturers to compete in the halal food market. Moreover, halal food is relatively more expensive than its substitutes due to the additional procedures it has to undergo with respect to Islamic laws. Such factors may hinder growth of the market in the near future.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2022 | Market Size in 2022: | US$ 192.6 Bn |
| Historical Data for: | 2017-2021 | Estimated Year: | 2023 |
| Forecast Period 2023 to 2030 CAGR: | 9.15% | Forecast Period: | 2023-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Cargill Inc., Al Islami Foods, BRF, Agthia, Fine Foods, Rhodes Food Group Holdings Ltd, Global Food Industries, LLC, and Alpha Fine Foods |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Trends
Halal cuisine is witnessing growing popularity among Muslim and non-Muslim consumers in recent years, as it has evolved from a religious identity mark to a guarantee of meal safety, hygiene, and reliability. For instance, in November 2019, Marks & Spencer, a major British multinational retailer launched its own-brand halal-ready meals products including chicken arrabbiata, chicken and mushroom tagliatelle, chicken and leek bake, chicken hotpot, chicken jalfrezi, and chicken tikka masala. These meals are available in U.K., Dubai, and Singapore outlets, operated by Al-Futtaim, a large conglomerate based in Dubai, United Arab Emirates.
Figure 2. MENA Halal Food Market Value Share (%), By Distribution Channel, 2021
Recent Developments
Competitive Section
Major players operating in the MENA halal food market include Cargill Inc., Al Islami Foods, BRF, Agthia, Fine Foods, Rhodes Food Group Holdings Ltd, Global Food Industries, LLC, and Alpha Fine Foods
Halal food industry is projected to gain major traction in the MENA region in the near future due to the rapid penetration of halal food distribution channels in the region. Moreover, increasing awareness about halal food and rapid adoption of halal food as safe and natural food are some of the key factors driving the growth of the MENA halal food market.
Market Dynamics
The wide presence of the Muslim population aroun Middle East and North Africa who abide by the is primarily driving the demand for halal food products. Additionally, the growing number of stringent regulatory frameworks that consist of mandatory halal labeling and certification rules for food and beverages is propelling the market growth. Moreover, the rising awareness, Muslim population, towards food safety, hygiene, and reliability offered by halal food products is further augmenting the market across Gulf Cooperation Council countries. Apart from this, significant growth in the food retail sector along with the growing availability of halal food and beverages across diverse distribution channels is catalyzing the market growth. Additionally, the emergence of e-commerce platforms in the GCC region has further bolstered the sales of halal food items on account of diverse product ranges, discounted offers, convenient purchases, doorstep delivery, etc. Besides this, several international companies are introducing halal food variants in their product portfolios to cater to the religious beliefs of their regional consumers. Moreover, the increasing popularity of numerous ready-to-eat and convenient halal food items, such as hot dogs, nuggets, soups, candies, cookies, pizzas, etc. is expected to drive market growth in the MENA region during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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