Home Food & Beverages Global Halal Ingredients Market Size, Top Share, Report to 2031

Halal Ingredients Market

Halal Ingredients Market Size, Share & Trends Analysis Report By End-Users (Food Industry, Beverage Industry, Cosmetic Industry, Pharmaceutical Industry) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRFB55641DR
Study Period 2019-2031 CAGR 5.8%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 330.2 Billion
Forecast Year 2031 Forecast Year Market Size USD 548.4 Billion
Largest Market Asia-Pacific Fastest Growing Market The Middle East and Africa
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Market Overview

The global halal ingredients market size was valued at USD 330.2 billion in 2022 and is projected to reach USD 548.4 billion by 2031, registering a CAGR of 5.8% during the forecast period (2023-2031). As the Muslim population expands, one of the key factors driving the halal ingredients market growth is the increase in demand for halal food and ingredients.

Halal ingredients are components used to create Islamic-compliant food, beverages, cosmetics, pharmaceuticals, and other consumer items. In Arabic, "halal" means "permissible" in the context of food and other items; it denotes that the materials and end products adhere to Islamic norms. One of the key factors contributing to the halal ingredients market share is the increase in demand for halal food and ingredients as the Muslim population grows.

The market for halal ingredients is predicted to rise significantly due to modern consumers' increased interest in them and their readiness to pay a premium for natural, organic, and earthy products. Consumption of halal-containing products has increased due to increased demand for healthy and safe products, and non-OIC countries are becoming increasingly reliant on the halal food business. All of these variables influence the halal ingredients industry.

Market Dynamics

Market Drivers

Growing Muslim Population

 The global Muslim population is rapidly growing, increasing the demand for halal products and ingredients. According to Pew Research Center data, the global Muslim population is anticipated to rise faster than the global population as a whole. In 2010, an estimated 1.6 billion Muslims worldwide were expected to rise to 3 billion by 2060.

This demographic transition seriously impacts the halal sector, particularly halal ingredient demand. The consumption of halal products, and hence the need for halal components, is predicted to expand as more individuals adhere to Islamic dietary requirements. Food, pharmaceutical, and personal care companies see the value of entering this expanding market. They are changing their product offerings to meet the needs of the growing Muslim client base, which includes a desire for halal ingredients. This demographic shift is pushing the globalization of the halal sector. As a result, it impacts the halal ingredients market trend.

Market Restraints

Limited Awareness in Non-Muslim Majority Regions

Limited awareness and understanding of halal principles in areas where Muslims are not the majority can make widespread acceptance of halal products and ingredients difficult. Muslim populations are less than 1% in Portugal, Iceland, Poland, Hungary, Slovakia, Czech Republic, Romania, and Armenia. In Africa, the Muslim population in Angola and Zambia is less than 1%. In Asia, Muslim populations are less than 1% in Laos and Vietnam.

As a result, there may be a lesser demand for halal products in these non-Muslim majority nations due to a lack of knowledge of halal concepts. This lack of understanding can limit the market potential for halal components and goods in these areas. 

Furthermore, companies operating in such areas may experience difficulties developing and marketing halal products. Education and marketing activities may be required to raise awareness and demand for halal ingredients.

Market Opportunity

Global Muslim Tourism 

The rise of worldwide Muslim tourism presents a big opportunity for halal ingredients companies. There is a growing demand for halal-certified commodities, including components used in the food and hotel industries. Muslim visitors seek destinations and products corresponding to their religious and dietary requirements. The halal tourism sector is expanding due to a growing population that is disproportionately young, educated, and upwardly mobile. Halal tourism is particularly worth considering because the Islamic world encompasses many tourism markets and destinations, which favorably impacts the forecast of halal tourism. Demand for halal tourism is rising with attempts to increase and promote tourism in Uzbekistan and Saudi Arabia and the resurrection of lost heritage sites. 

Hotels and resorts in tourist areas are modifying their offerings to accommodate Muslim visitors. This includes providing halal-certified meals at their restaurants and ensuring that the products used in food preparation adhere to halal requirements. Hotels, for example, may utilize halal-certified meat, halal-friendly cooking methods, and specific prayer places. Because of the booming Muslim travel industry, businesses are investing in halal certification to ensure that their services, including ingredients, satisfy the requirements of Muslim travelers.

Regional Analysis

The global halal ingredients market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global market shareholder and is estimated to grow at a CAGR of 5.7% over the forecast period. Numerous nations within the Asia-Pacific area exhibit a pronounced cultural and religious inclination towards adhering to halal principles, which significantly impact consumer decision-making and preferences. In the Asia-Pacific area, certain governments may adopt policies and initiatives to bolster the halal industry, promote exports, and enhance the efficiency of halal certification procedures. With over one billion adherents, the Asia-Pacific region (from Turkey to Indonesia) is home to around 62% of the world's Muslims. Indonesia has the world's largest Muslim population, accounting for 12.7% of all Muslims, followed by Pakistan (11.1%), India (10.9%), and Bangladesh (9.2%).

Additionally, South Asia dominates the worldwide halal ingredients market and is expected to continue during the projected period. An increased emphasis on sustainability and a rising demand for flavors or cosmetics has aided Malaysia's growth. Malaysian firms are tipping off the demand for halal ingredients to neighboring countries like India, targeting not only the Muslim population as consumers but also the non-Muslim segment rooting for sustainable practices and cruelty-free products. Furthermore, the adoption of halal ingredients and the development of awareness about their benefits are pushing halal ingredient sales globally, among Muslims and non-Muslims alike.

The Middle East and Africa is anticipated to exhibit a CAGR of 6.0% over the forecast period. In the next 20 years, the Muslim population in the Middle East-North Africa region is predicted to increase by more than a third (37%). Its population is expected to increase from 321.9 million in 2010 to 439.5 million by 2030. Turkey dominates the GCC countries' halal ingredients industry, with a more than 25% market share. More people in Turkey today support a larger role for religion in their countries than 20 years ago. Muslim-majority nations, such as Indonesia (85%) and Nigeria, had the greatest percentages in favor of religion, contributing to the increasing demand for halal components. It should be highlighted that many Islamic beliefs are universally appealing. As a result, many products and services do not need to be targeted solely at Muslims. The major Muslim countries consume a lot of halal ingredients, creating opportunities for new halal production facilities. 

Europe is likely to be a growing market in the next years. People of Muslim faith or ancestry are expected to make up around 8% of Europe's population by 2030. According to emerging trends in the worldwide halal ingredients market, Germany is expected to hold more than 20% of the European halal ingredients market in 2022, and it is expected to rise at a substantial CAGR throughout the projected period. Halal components are gradually making their way across regional borders.

Furthermore, Germany has the second-largest Muslim population in the European Union after France; nevertheless, demand is beginning to rise due to increased awareness of halal-related baking ingredients, aiding in expanding the worldwide halal ingredients market size. Germany is steadily moving toward a cruelty-free culture, which is increasing demand for halal food, pharmaceuticals, and cosmetics.

The North American halal ingredients industry has grown moderately, owing to expanding halal awareness, a growing Muslim population, and rising demand for ethically sourced and certified products. Currently, the number of Muslims in the United States is projected to be between 3 and 4 million, and Islam is expected to overtake Christianity as the second-largest religion in the country. Halal product awareness is growing, not only among Muslim consumers but also among others looking for ethical and high-quality items. As a result, there is a greater demand for halal ingredients in North America.

Latin America is predicted to expand slower than other regions since it is difficult to overcome cultural and educational hurdles to promote knowledge about halal products. However, the Muslim population has grown in other Latin American countries, such as Brazil. This demographic transition increases demand for halal products and ingredients.

Report Scope

Report Metric Details
By End-Users
  1. Food Industry
  2. Beverage Industry
  3. Cosmetic Industry
  4. Pharmaceutical Industry
Company Profiles Nestlé ADM Ingredion AB Mauri Malaysia BASF Ashland Givaudan Kerry Kingherbs Limited
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global halal ingredients market is segmented based on End-users and region.

Based on End-users, the market is further segmented into the Food, Beverage, Cosmetic, and Pharmaceutical industries.

Food Industry holds the major market share. This segment includes companies manufacturing, processing, and distributing halal food items. It covers a wide range of food items, from raw ingredients to finished goods, assuring halal compliance at every level of the food supply chain. The food industry is expected to dominate the global market during the projected period, owing to rising demand and consumption of halal cuisine worldwide by Muslim and non-Muslim populations. Manufacturers' production of halal processed foods and their increased consumption are projected to drive the growth of the global market during the forecast period.

Businesses in this segment manufacture halal-compliant beverages, ensuring that the ingredients used in their production follow halal criteria. Non-alcoholic beverages, juices, and other halal-certified drinks are examples of this.

Market Size By End-Users

Market Size By End-Users
  • Food Industry
  • Beverage Industry
  • Cosmetic Industry
  • Pharmaceutical Industry
  • Recent Developments

    • October 2023- Nestlé introduced a range of palatable and nourishing substitutes for white fish.
    • October 2023- ADM Protexin, ADM's trusted probiotic supplements brand, and Nutramax announced the expansion of their longstanding cooperation, which will allow ADM Protexin to handle select Nutramax brands in Europe and several APAC territories to expand internationally.
    • October 2023- Ashland highlighted GPMTM fermented nutrients in organic, non-GMO*, and soy-free varieties.

    Top Key Players

    Halal Ingredients Market Share of Key Players

    Halal Ingredients Market Share of Key Players
    Nestlé ADM Ingredion AB Mauri Malaysia BASF Ashland Givaudan Kerry Kingherbs Limited Others

    Frequently Asked Questions (FAQs)

    How big is the halal ingredients market?
    The global halal ingredients market size was valued at USD 330.2 billion in 2022 and is projected to reach USD 548.4 billion by 2031, registering a CAGR of 5.8% during the forecast period (2023-2031).
    Asia-Pacific region has the highest growth rate in the halal ingredients market.
    Growing muslim population are the key drivers for the growth of the halal ingredients market.
    The key players in the global halal ingredients market include Nestlé , ADM , Ingredion , AB Mauri Malaysia , BASF , Ashland , Givaudan , Kerry , Kingherbs Limited.

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