The market is primarily growing on account of growing spending on halal meat among middle-class Muslims in countries like Pakistan, Indonesia, and Turkey. Apart from the cultural and ethical norms, rising demand for quality products among the Non-Muslim population also contributes to market growth. A growing trend of halal tourism can also be attributed to the growing halal meat market. All these factors collectively have translated into the growing adoption of halal meat globally.
Halal food has been around for above 1,400 years, but only in recent years have halal products gained global importance. The global Muslim population surpasses 1.6 billion, is increasing at twice the rate of the non-Muslim, and is anticipated to reach 2.2 billion by 2030. Thus, the market for halal products and services is gaining more attention.
The global halal meat market was valued at USD 511,454 million in 2019 and is expected to grow at a CAGR of 6.3% during the forecast period, 2020–2029.
Rising Immigration Rates of Muslim Population
Also, immigration from the Middle East and from the Muslim Asian countries has risen in recent years. The Muslim population in the European region has also increased in the past 3 decades, driven by globalization and increasing birth rates, and a parallel trend has been observed in other areas as well. Research has demonstrated that, if the trend continues in the same way until 2030, 79 countries are expected to account for more than 1 million Muslim inhabitants by 2030. Canada, Congo, Belgium, Guinea Bissau, Togo, and the Netherlands could be the new countries to join the league of the growing Islamic population. Thus, the growing global Muslim population is estimated to have a wide-ranging impact on the world market size of halal meat consumption over the forthcoming years
Muslim Community: One of the Fastest-Growing Sects Worldwide
Halal, nowadays, has turned out to be a universal term that encompasses the whole concept of new, safe, and safer development as well as food services. The fast-growing Muslim community, their economic growth and rising disposable income of an average consumer are the key factors projected to boost the demand over the forecast period. There are approximately 1.9 billion Muslims in the world, making Islam the second-largest religion, according to the data published by the ‘World Population Review’ organization. With a broad, affluent, and educated consumer base of about 1.7 million, mainly young Muslims worldwide, rising at nearly twice the pace of world population, the Islamic economy can be considered as one of the fastest increasing sects worldwide. The International Monetary and Financial Systems stated that in one instance where the global economy is entering a secular stagnation due to a decline in investments and the aging population, the Islamic economy, on the other hand, stands in unambiguous contrast posing enormous opportunities for the economic growth.
Consumer awareness in the halal food sector has already had a significant impact on the development of the market over the past decade. Changes in lifestyles through decades, across the world, have been observed in shopping, cooking, and eating patterns. Awareness of the relationship between diet and health and the need for processed convenience foods have given augmentation to new subsectors of the food market that have their counterparts in the halal meat market.
The growth in market size will also be driven by the rising consumer spending on halal food and the expansion of the facilities for halal food production. The increasing consumer awareness about halal food has helped in the expansion of the market to Indonesia, Malaysia, Saudi Arabia, Singapore, and the UAE.
Slaughtered halal cattle, for instance, undergo two safety inspections relative to the single test performed on other conventional animals. In addition, many Islamic and non-Islamic countries adopt stringent regulatory structures, composed of internationally agreed principles, to encourage novel business entrants. Also, for preparing halal meat, animals are not treated with any antibiotics, hormones, and preservatives that are usually used for producing meat and are slaughtered as per the Islamic dietary law. Halal foods also offer several benefits such as improved metabolic system, immune system, and brain functioning.
Halal Market Drivers
Rising Muslim Population Boosts the Poultry Segment Growth
The poultry segment accounted for the largest revenue share in 2018. Across the halal sector, poultry and processed poultry products market is a significant one and gains a higher market share. Relatively cheap prices, popularity, and global reach are some of the factors for the healthy growth of the market. Halal food has the highest demand from Muslims across the globe, especially in Arab and Muslim dominating countries. Rapidly increasing demand from Muslims for halal poultry is one of the prime factors for the poultry segment growth. Muslims represent more than 23% of the global population, making up to more than 1.8 billion people. With the population growth rate of about 3%, the Muslim population across the globe is expected to reach 2.2 billion by 2030, where Muslims will represent about 26% of the global population.
The Middle East and Asia-Pacific are the two highest halal meat consuming regions across the globe with the strongest growth in the next few years. According to our research, more than half of the Muslim population lives in Asia-Pacific and South Asia, which is expected to reach 1.3 billion by 2030. Poultry demand from countries including Pakistan, Bangladesh, India, and Indonesia is growing decade over decade, with population rise, which is expected to further support the poultry segment growth during the forecast period.
The popularity of Processed Food Products with Halal Meat as an Ingredient
The processed foods segment is expected to grow with a lucrative CAGR of 6.5% during the forecast period. Processed food has increased demand for halal meat tremendously in the last decade after processed food products with halal meat as an ingredient has gained much popularity. The growth rate of the processed food products with halal meat is relatively higher than the processed food products with normal meat. Processed food is widely consumed across developed countries, including the U.S., the U.K, Germany, and Japan, along with many other developing countries. The working-class population is highly dependent on processed food for their daily meal, which is driving the processed food segment in the global halal meat market.
Rise of processed food manufacturing companies across developing and developed nations is another factor boosting the processed food segment growth. Technological advancements have played a vital role in the production of processed food for the modern generation, ultimately fueling the overall halal meat market. In terms of volume, a larger share of halal food is used in the preparation of processed food products worldwide, benefitting the trade of halal meat.
Asia-Pacific: Home for the World’s Largest Muslim Population
The Asia-Pacific halal meat market was the largest contributor in terms of revenue in 2019, which is also set to record the highest CAGR during the forecast period. This is primarily attributed to the fact that they constitute the world's largest Muslim community. Asia-Pacific is home to about 63% of the global Muslim population. Indonesia, Pakistan, India, Bangladesh, Myanmar, and Morocco are among the Asia-Pacific countries with the world's biggest Muslim community. Hence, feeding this enormous population has resulted in the considerable size of the halal food industry in the region, specifically halal meat. The growing literacy rate among the young Muslim generation has also become a crucial factor for the growth of the market. The other factors include the increasing awareness among the consumers about beneficiary qualities of halal food apart from religious beliefs, like food and beverage security and nutrition, along with rising tourism.
Increasing fertility rate is also one of the primary reasons behind the population explosion in the region. The other two vital trends that are responsible for the substantially rising Muslim population in Asia-Pacific are religious conversion to Islam and migration from Muslim dominated nations in other areas. According to the data published by Pew Research Center, by 2050, there may be around 1.5 billion Muslims in the Asia-Pacific region. As the number of Muslims has risen, the demand for these types of food has also soared dramatically, and this trend is expected to continue during the forecast period. Moreover, growing consumer spending on halal foods during the forecast period will significantly drive the growth of the halal food market in this region. Furthermore, growing demand and exports from key competitors, especially the U.S and Brazil, will stimulate competition in the years to come, particularly in Asian markets.
The halal meat industry has seen considerable growth over the last decade and has a larger potential for change with industrialists and government funding. The meat industry for export attracted heavy investment in recent years, as prominent meat exporters are expanding their processing capacities to meet demand in new global markets.
The Halal consumer trend has been dominated by the countries of Southeast Asia, and in particular by Malaysia, from the past 3 decades. Halal standards and certification are expected to evolve gradually, as much of the meat production was in non-Muslim Chinese hands and Halal certification under Muslim Malay government supervision. Malaysia has allowed global multinational companies to build their own in-house skills for meat production. Nestle Malaysia has become an outstanding example by presenting guidance on Halal that is used at Nestle plants around the world. The majority of MNCs in the food sector, restaurant chains, supermarkets, and distributors, are now participating in the Halal sector through their involvement in the GCC and Asia, to extend their Halal offerings without alienating their core customers.
Although global MNCs dominate the industry, small and medium-sized businesses still have the potential to serve domestic and foreign customers, either with their own packaged products targeted at niche consumers or by supplying other larger companies. Also, in countries such as Australia and Brazil, exporting meat and poultry is a core component of the national policy, firmly backed by the agencies of their governments. Trade and investment service institutions (TISIs) have enough potential to play a more active role in the growth of their Halal markets, and strong examples can be observed in Southeast Asia and, more recently, in Morocco. Latest reports also revealed an increase in mergers and acquisitions in the Halal food market and a rise in competition in the Islamic finance sector, M&A activity is likely to increase in the coming years. This trend and other growth measures are also backed by more reliable and quantitative data being made available, mainly through the "Dubai Capital of Islamic Economy" initiative of the Dubai governments in 2013.
Halal industry 'buzz' has been coming from Southeast Asia for many years, in particular with respect to trade meetings, conventions, data, and promotional activity. New developments in Dubai and the broader Gulf community have changed that, and despite its purchasing power, geographical position, and the ability to innovate, as well as modern regulatory mechanisms, the country is playing an increasingly prominent and influential role.
The market is highly fragmented regionally with the presence of players like Isla Delice, Carrefour SA, Nestlé S.A., Casino Service Processing, Tesco plc, Tariq Halal, Reghalal, Pure Ingredients, Hebei Kangyuan Islamic Food Co., Ltd., Amana Foods and many others.
Halal Meat Market Segmentation
By Product Type
Frequently Asked Questions (FAQs)