Halal is an Arabic term that literally means "permitted" and refers to a series of permitted and prohibited activities stipulated by Islam, involving food and beverages. Muslims should eat "halalan toyibban" foods and use "halalan toyibban" products, because they are allowed and good for health. In fact, the halal market is not only open to Muslims, but now more and more non-Muslim consumers also consume and use halal food and goods.

Rapid expansion of the halal industry chain

According to the "State of the Global Islamic Economy Report 2019/2020", the global halal market was valued at USD 3.7 trillion in 2019. Nowadays, the halal industry has expanded from the food sector to beverages, pharmaceuticals, fashion, cosmetics, health products, medical equipment, and other service industries, such as logistics, marketing, printing, electronic media, travel, packaging, branding and financing. The halal industry chain expands very fast.

 
The most profitable market

According to the market report at www.marketstudyreport.com, the halal food market is becoming one of the most profitable and influential markets in the world's food industry. In recent years, the global consumption value of halal food has increased at an average annual growth rate of 8.14%. 

The region with the most halal followers in the world are Middle East and Africa, however, the country with the highest spending on food and beverages by Muslims is Indonesia. Southeast Asia, Middle East and North Africa were the main consumption areas of halal food in 2019. There are three main types of halal food: fresh products, frozen savory products and processed products. With the rapid growth of Muslim population and economy, consumers will need more halal food. Therefore, halal food has great potential in the future.

 
Technology promotes market development

In recent years, halal food manufacturers have tried to improve the technology to produce high-purity, high-quality halal food. The main raw materials of halal food are fresh meat, food seasonings and other additives. Fluctuations in the prices of upstream products will affect the cost of production of halal food, which in turn affects the price of halal food. Halal food producers are planning to reduce production costs by developing new production methods, and the updates of technology will promote the market development.

Global halal food market is expected to become another investment trend

According to the survey report of Future of World Religions, the global Muslim population is rising rapidly, currently accounting for a quarter of the world's population, the total Muslim population is expected to exceed 3 billion by 2060.

The research report shows that the global halal food market is expected to become another new investment trend in the next five years, and the CAGR is expected to reach about 6.1%. The annual increase of global halal food market will increase from USD 111 million in 2019 to 163 million USD by 2024. 

The biggest growth opportunities for the global halal food market in the future include making halal food into healthy food and producing organic halal food. It certainly will bring huge market opportunities for the halal food industry, especially for the Chinese halal food industry, which is now only exporting less than 1% of halal food. (Chen)


Soruce in Chinese: MOFCOM


Please note: Original English article of Business Division of Food Safety and Regulatory Compliance of Global Foodmate, please indicate the source from the Global Foodmate if reprint.