Market Dynamics
Global Halal Meat Market Drivers
Religious Belief
The halal meat marketplace is emerging as one of the fastest-growing areas in the food industry due to the rising need for halal meat among the growing Islamic population, which exhibits high loyalty to halal products. The followers of Islam are only allowed to consume meat prepared according to Islamic laws since, in Islam, eating is viewed as a matter of worship, such as prayer, fasting, and alms-giving. These food laws carry a special significance among Islamic followers, who also consider it a way of life with protocols, rules, and manners that govern every aspect of life. Moreover, eating in Islam is also done to maintain good health rather than live. Individuals are thus inclined toward halal meat since they regard it as purer and safer than other alternatives in the market.
Growing Islamic Population around the Globe
Muslims — individuals who follow the teachings of Islam — amount to over two billion in number at present, according to the pew research center, which makes Islam the second most followed religion. Most global Muslim populations are in the Middle East, Asia-Pacific, and Africa. Indonesia is the largest Muslim country worldwide, with around 229 million Muslims, and Muslims comprise 87.2% of the country's population and 13% percent of the global population. Some other countries considered Muslim majority (where more than 50% of the population is Muslim) include Afghanistan, Pakistan, Western Sahara, Turkey, Saudi Arabia, and Iran. Islam is also the fastest-growing religion globally, mainly because Muslim majority countries are located in some of the fastest growing parts of the world in terms of fertility rate. According to the Africa Islamic Economic Foundation, Muslims are expected to make up about 26% of the world's total estimated population of 2.2 billion in 2030
Global Halal Meat Market Restraint
Increasing Adoption of Plant-based Protein
The seismic shift in consumer preference from animal-based to plant-based protein for its umpteen advantages in reducing cholesterol, blood pressure levels, body weight, and heart disease has attracted Muslims who have been looking for choices besides fish and vegetarian options at restaurants and fast-food chains. This has made plant-based protein one of the meat industry's biggest competitors, which negatively impacts the halal meat market.
Global Halal Meat Market Opportunities
Growing Islamic Population in Southeast Asia
In Asia-Pacific, a significant portion of the Muslim population lives in Indonesia, Malaysia, China, Thailand, and Brunei. As most of these economies are Muslim-majority countries, they significantly contribute to the Islamic population's growth across the regional market. This can be further attributed to the fact that Muslims' fertility rate in these economies is higher than the fertility rate of non-Muslims. For instance, Muslim women in China have an average of 1.7 children, compared to a national average of 1.4 children. Additionally, it is expected that in the years to come, the high fertility rate of economies such as Indonesia, Malaysia, and Myanmar will add to the population growth in a significant way, reaching twice its current number. Hence, such a growing Islamic population provides lucrative growth opportunities for market growth.
Regional Analysis
By region, the global halal meat market is segmented into North America, Europe, Asia Pacific, Central, South America and Caribbean, Middle East, and Africa.
Asia-Pacific accounted for the largest market share and is estimated to grow at a CAGR of 6.4% during the forecast period. Geographically, Asia-Pacific holds the most significant value share of the global halal meat market and is expected to remain dominant throughout the forecast period. The critical factor favoring regional market growth is the large Muslim population in South Asian countries such as Indonesia, India, Malaysia, Thailand, and China. According to the Pew Research Center Forum on Religion & Public Life, in 2010, Indonesia accounted for the largest Muslim population globally, i.e., 209.1 million or 13.1% of the total global Muslim population. India followed Indonesia with 176.6 million Muslims in 2010. The Muslim population is expected to reach 310.6 million in India by 2050, making India the country with the largest Muslim population.
Additionally, the demand for halal meat among non-Muslims, in light of improving personal spending in the region, is also expected to drive the regional halal meat during the forecast period. Furthermore, as the halal industry contributes significantly to South Asian economies such as Indonesia and Malaysia, these countries' governments are investing significantly in the halal industry's development. For instance, as per the Ministry of International Trade and Industry, Malaysia's halal industry's total investment reached USD 2.4 billion in 2015 from USD 1.35 billion in 2012.
Europe is the second largest region. Europe's halal meat market's growth is attributable to the steady rise in the region's Muslim population. According to the AFRIEF, the number of Muslims in Europe is anticipated to increase by nearly a third from 44.1 million in 2010 to 58.2 million in 2030 and reach 20% of the total populace by 2050. Additionally, the region's Muslim populace is becoming more aware of their identities, which has further translated into demand for halal meat across the regional market.
North America is the third largest region. The halal industry is observing a paradigm shift in North America, especially the U.S. Instead of being a preference exclusive to Muslims, halal meat has become a lifestyle choice for many individuals as they see strict health and hygiene guidelines in the production of this meat. Halal terms are thus being included in policy formations, due to which large multinationals are looking at capturing the consumer base. According to Pew Research, Muslims constitute 1.1% of the U.S. population, and the figure continues to grow. It is expected that Muslims will emerge as the second-largest religious following after Christians by 2040. Companies in the U.S., such as Cargill, Nestle, and Unilever, have already started looking into halal products to cater to anticipated future demand growth, as the demand for halal meat will increase in tandem with the growing Muslim population.
Muslims were traditionally inclined toward home-cooked meals and locally slaughtered meat (or meat slaughtered by a family member or neighbor). As dietary patterns change, consumer behavior among Muslims is expected to drive halal meat growth as the demand for processed meat is predicted to increase during the forecast period. Companies in the U.S. are also developing technologies that can assure halal meat consumers of compliance with halal practices.
In particular, Blockchain has been a point of discussion, which makes it possible to certify and confirm compliance at each stage of production. More such technologies, such as nanosensor analysis in biotechnology, can be used to detect traces of unwanted food, creating a conducive atmosphere for confidence-building. The official Government of Canada estimates that around 3.2% of the population identifies as Muslim. Alberta Agriculture, Food & Rural Development (AAFRD) and Farming For The Future Farm Demo Project (FFF) have researched the halal market's potential and found that Canadian Muslims are willing to pay premium prices for halal meat, with price as the third-best attribute to influence decisions. Even though Mexico has a minority Muslim population, it can leverage its infrastructure to produce halal meat and export it to countries of the Organization of Islamic Corporation (OIC).
Segmental Analysis
The global halal meat market is segmented by type, certification type, packaging type, distribution channel, end-user and region.
By Type
Based on the type, the market is segmented into Poultry, Beef and Lamb.
Poultry constitutes a substantial sector within the Global halal meat industry. The collection includes halal-certified poultry and turkey. Many people like poultry due to its versatility, leanness, and compatibility with many culinary traditions. In addition to whole birds and chicken parts, halal markets sell chicken nuggets, sausages, and deli pieces. Halal poultry is used in many dishes and cuisines, making it popular in restaurants and homes.
Beef is another major halal meat market area, with a variety of certified cuts and products. In many cuisines and cultures, beef is preferred, especially in red meat-heavy countries. Burgers, minced beef, beef sausages, steaks, and roasts are in this division. Halal beef's popularity is due to its use in traditional dishes, barbecues, and as a protein source.
Lamb is extremely popular in the global halal meat business due to regional and cultural preferences. Lamb is popular in Middle Eastern and Mediterranean cuisines due to its flavor and suppleness. Halal lamb chops, racks, and mince are available. Kebabs, stews, and curries, which halal eaters love, use lamb.
The beef segment is the second largest, whereas the Lamb segment is the third largest.
By Certification Type
Based on the Certification Type, the market is segmented into Halal Certification and Non-Certified.
Certification as halal is a significant market segment for halal meat. This accreditation ensures that Muslims can eat cattle products according to Islamic diets. The section offers a wide range of halal-certified meat products for Muslim diets. These items are certified across the supply chain, from sourcing to processing and distribution. Halal certification gives consumers confidence and transparency in the halal meat business.
The non-certified halal livestock industry includes products with the halal label but no certification. Despite not passing the strict certification process, these goods continue to satisfy halal meat alternative buyers. The non-certified category may contain halal products, but consumers who value authenticity and Islamic dietary restrictions may be concerned.
By Packaging Type
Based on the Packaging Type, the market is segmented into Fresh meat and Frozen meat.
Fresh meat is a major halal meat market segment. This category includes unfrozen, natural cattle products. Fresh halal meat is purchased from trusted sources, processed, and given to consumers or retailers to maintain its freshness. Consumers who value fresh meat's flavor, tenderness, and consistency make up this population. Those who like same-day consumption and local halal vendors like it. Butcher shops and specialty halal meat enterprises supply a wide range of fresh meat for consumers seeking premium, non-frozen commodities.
The frozen meat sector of the halal meat industry contains items that have been frozen to prolong their viability following processing, packing, and storage. Chilling preserves meat as safe and fresh for a long time. Consumers who value meal planning and prolonged stowage choose this category. Halal frozen meat is offered at grocery stores, supermarkets, online, and home delivery. Frozen halal meat is a convenient solution for busy homes and those who like to stock up on meat.
By Distribution Channel
Based on the Distribution Channel, the market is segmented into Retail and Online.
The retail segment is a significant distribution channel in the halal meat market, offering consumers the convenience of purchasing halal meat products in physical stores. Retailers provide consumers with the ease of buying halal meat products in supermarkets. Halal meat is available at specialty markets, supermarkets, butchers, and grocery stores. These stores meet the needs of consumers seeking processed meat, beef, chicken, lamb, and other halal meat cuts. Retailers often offer a wide assortment to satisfy ethnic and gastronomic interests. Retail is an important part of the halal meat distribution network since consumers may check the meat's quality and freshness.
As electronic commerce has grown, so has the halal meat online sector. Halal meat e-retailers and marketplaces allow consumers to order halal meat items online. This distribution route serves families, busy professionals, and individuals seeking specific halal meat cuts or processed items. When consumers order online, the segment often offers a wide range of products with doorstep delivery. Customers seeking rare or specific halal meat options are also served. Digital platforms and consumer needs for streamlined shopping are driving online growth.
By End-User
Based on the End-User, the market is segmented into Household Consumers, Food Service Sector, Retailers, and Others.
Household consumers are a significant end-user segment in the Halal Meat Market. Homebuyers of halal meat products make up this portion. Dietary choices, cultural and religious views, and a preference for high-quality certified halal products affect household halal meat demand. Using halal meat in many recipes and traditional meals makes it a kitchen requirement. Halal meat is commonly available in homes due to its availability in local markets and online shops.
The Halal Meat Market's food service business includes institutional buyers, restaurants, hotels, and caterers. Restaurants often offer halal options for Muslim customers to satisfy a diverse audience. From fast food to fine dining, many restaurants use halal meat. In response to consumer desire for diverse culinary experiences, food service continues to offer halal meat options.
Retailers are vital to halal meat access. This category includes supermarkets, grocery stores, online retailers, and halal marketplaces. To serve their different customers, grocery stores and supermarkets have a wide range of halal meat and processed foods. Dedicated halal markets offer a wide range of certified halal meat. The online halal meat retail business has grown, allowing clients to order from home and expanding the market.
Others in the end-user sector may include many Halal Meat Market players. This group includes industrial users, wholesalers, and distributors who buy halal meat in bulk for processing or distribution. Educational and medical institutes that buy halal meat for dietary reasons may also fall into this category. Non-retail, food service, and household customers of halal meat may also fall into the "Others" category.
