The global halal meat market size is expected to grow at a CAGR of 7.8% during the forecast period (2021–2030). Growing consumer awareness about the certification methods that offer varied benefits is anticipated to be a major driving factor boosting the demand for halal-certified products. The perception attributed to the methods is important while knowing the choice of customers in consideration with the product they would prefer to buy.
Moreover, there are other driving factors involved that will increase the demand for halal meat in the coming years. Factors such as growing spending of customers to buy food, lifestyle changes, and the ever-growing middle-class populations in developing countries.
Top Key Market Drivers
Shariah Law to be a Driving Factor for the Global Halal Meat Market Growth
The halal meat market is a growing market as people are becoming more aware of the health benefits it provides. More than 50% of non-Muslims are aware of the concept of ‘halal’ that is associated with cleanliness and hygiene. Overall 47% of people are aware of the concept. Young people are more aware and woke in terms of understanding different cultural concepts. It was found that 63% of the young population between the age of 18 and 24 thoroughly know the concept.
In the halal meat concept, animals are killed according to Islamic Shariah law. This law states that the animal should be treated nicely when alive and should be slaughtered by hand. The goal is to minimize the pain for the animal while it is being killed. This method has an advantage in quality, wholesomeness, and edibility. Slaughtering an animal in a kind manner is more humane as compared to slaughtering it with a machine. Thus, this law is anticipated to boost market growth to a great extent.
Market Future Key Challenges
Unorganized Production to Stunt Growth of the Global Halal Meat Market
Unorganized halal meat producers do not sell it at a reasonable price. As there is no structure in pricing and distribution, unorganized production is more expensive as compared to organized ones. The demand is more than the supply if we look from an economic perspective.
On the other hand, organized production is cheaper in the market as it is usually under the control of big corporations in export markets. This contributes to low profits for the companies. As a result, they seek to increase their profit by organizing halal meat production. So, unorganized producers try to catch up through opportunity cost, as they lose out on their profits due to low demand.
What Are Future Key Opportunities in Halal Meat Market
Good Hygiene Practices to Offer Numerous Opportunities for Market Growth
Due to a wide range of reasons, the youth is preferring to eat fast food. As per one of the surveys, 66% of the people between the age of 11and 30 have shown a clear preference for local halal-certified products displaying a halal logo on them. New entrants in the market are expected to enter with creative value to the product, such as organic ingredients, free-range production methods, and high-quality products from Japan and Australia.
Good hygiene practices and maintaining the standard quality for the product will help producers dominate the market. Rising health consciousness in consumers will create numerous opportunities. Import/export agencies dealing with halal meats will benefit by forming strategic partnerships with reputable overseas halal meat suppliers. This will ensure the supply of high-quality goods for local consumers.
Analysis of COVID-19 Impact
There wasn’t any noticeable change in the halal meat market growth due to the virus. Consumers realized the need and importance of good immunity and thus did not fall back on buying halal meat. This situation rather caused an increase in the consumer base for halal meat. Transportation issues due to covid restrictions created a supply gap. This resulted in the cost rising by 10%.
Problems such as transportation issues, less labor availability, supermarkets being completely or partially shut down, decreased spending power of consumers, etc. arose due to the pandemic. In general, the pressure on the supply chain could be considered the major factor that affected the global market negatively.
There has been a significant rise in the Muslim population. This has created a massive demand for fresh meat. As Australia has witnessed a lot of droughts and floods, the capacity to produce cattle and in turn beef has been decreased by a significant amount. According to the claims of Agricultural and Resource Economics and Sciences (ABARES), the sales of fresh meat fell by 11% between 2016 and 2017. Muslim-dominated countries such as Saudi Arabia, Pakistan, Qatar, and Kuwait and non-muslim country such as Japan has seen a surge in the demand for meat.
In today's fast-paced lifestyle; with work, school, family, and other activities, it can be hard to find the time for cooking food. As a result, consumers are more inclined toward fast foods. Although, demand for freshly cooked food is still high. Approximately, 71% market is dominated by fresh meat, and the remaining 29% is dominated by fast-food chains that create meat-based food products.
Geographically, the global halal meat market share is segregated into North America, Europe, Asia-Pacific, South America and the Caribbean, and the Middle East & Africa. Asia-Pacific and the Middle East and Africa are the biggest consumers of halal meat. Asia-Pacific dominates 59.4% of the market and the market is expected to grow at a CAGR of 7.6%. Whereas, the Middle East and Africa dominated 21.8% of the market consumption index.
Production in Asia-Pacific has expanded by twelve times since 1965 and it is ever-growing. At least, 100 million animals are killed worldwide and the number only grows. Asia-Pacific imports the beef meat from Latin America and exports it to the Middle East and Africa. China, India, and Australia account for 32%, 25%, and 20% of the meat production across the globe.
Market Key Companies
List of Top Key Halal Meat Manufacturers
- Amana Foods Co.
- Al Islami Foods
- Tariq Halal
- Tahira Foods Ltd.
- SIS Company
- Al Kabeer Group ME
- Prairie Halal Foods
- Neema Foods Company
- Thomas International
Muslim countries have experienced very steady and positive growth in the food and beverages industry. The reason being is the increased spending capacity of the customer base. The global market of halal meat as a sub-sector has been affected positively as well and has seen considerable growth. Due to an increase in the number of non-resident Muslims in several countries, the global market of halal meat has seen demand from across the globe.
Moreover, halal certification has become an integral and important part of the beef market due to an increase in the quality assurance of products. This pushes the companies producing halal products to meet the standards of the halal certification to cater to a larger customer base. From Haribo candy to Nestle, to Saudi Arabia’s Savola Group, this has only assured feasibility in a wider sense. This confirms the trust of the customer in the companies and thus boosts the growth of the global market of halal meat
Global Halal Meat Market: Segmentation
By Product Type
- Fresh Food
- Processed Food
- North America
- SA and Caribbean
Frequently Asked Questions (FAQs)
The market is anticipated to grow at a CAGR of 7.8% over the forecast period.
The fresh food segment is expected to be the leading segment in the market during the forecast period.
The market will be estimated to grow from the years 2022 to 2030.
Amana Foods Co., Al Islami Foods, Tariq Halal, Tahira Foods Ltd., Noories, SIS Company are the top players in the market.
Shariah Law is the key factor expected to drive the market during the forecast period.
The Asia Pacific is expected to hold the highest market share.
Good Hygiene Practices create a window of key opportunity in the market during the forecast period.