The global halal market size was estimated at USD 5.73 trillion in 2016 is likely to grow substantially due to the increasing population of Muslims across the globe. The growing size of the youth population with high disposable income utilising these products & services is expected to further augment the growth of the market over the next eight years.
Global halal market revenue, 2014 - 2024 (USD Trillion)
Rising demand for halal products including cosmetics, pharmaceuticals and food & beverages in accordance with the traditional Islamic law is expected to drive the global industry growth. The Muslim population is projected to reach 2.2 billion by 2030 up from 1.7 billion in 2014. At present, Muslims account for over 20% of the global population.
These factors are expected to play a vital role in driving the demand for halal products & services. Rising demand for halal food owing to its adherence to Islamic laws is expected to drive the global demand. Furthermore, the increasing revenue of Islamic nations, primarily due to the rapid progress of the Islamic financial prudence in the Middle East and South East Asia, is also projected to underwrite to the marketplace development in the next few years.
The usage of halal products by non-Muslim consumers is also on the upsurge, which is anticipated to fulfil the worldwide demand further. Since these products are not limited to food & beverages, they have diversified into various products & services which have witnessed a boom since their inception.
Numerous countries with high demand have insufficient manufacturing infrastructure to match the growing demand. Thus, they are heavily dependent on imports from other nations. Governments in certain countries are also offering incentives and grants to companies for manufacturing halal products and encourage the use of certified products.
Segmentation By Product
• Food & Beverages
• Media & Recreation
Finance was the largest revenue contributor to the global halal industry accounting for 65.5% of the share in 2016. New product innovations including Sharia-compliant pension funds is expected to drive the growth of the sector.
Lack of awareness has resulted in low penetration of the sector over the past few years. Nonetheless, countries such as Maldives, Pakistan, Sri Lanka, and Iran are expected to enter the global market thereby exploiting the untapped potential of the segment.
Halal food & beverages were the second largest segment of the market and are expected to witness growth at a CAGR of 9.9% over the projected period. Increasing availability of online halal meal takeout and delivery platforms, especially in non-OIC economies. The emergence of e-commerce portals such as HalalEat, Halalonclick, and Halal to Door is anticipated to fuel the growth of the segment over the next few years.
Halal tourism has recently gained immense popularity and is now emerging as a new phenomenon in the global tourism industry. Increasing number of Muslims visiting beaches in countries such as Turkey and Thailand is expected to drive the growth of the segment. Keeping in mind the growth of the global tourism market, there has been an emergence of platforms such as Airbnb, Tripfez and Bookhalalhomes over the past few years and these companies have been gaining tremendous momentum in tandem with the increasing number of travellers. The segment is estimated to be worth USD 320.7 billion by 2024.
Segmentation By Region
• Asia Pacific
• Middle East
• Saudi Arabia
The Middle East and Asia Pacific together dominated the global industry accounting for 83.3% of the market share in 2016. The presence of a large Muslim population in these regions will drive the global market. Ease of availability of halal certified foods & beverages, numerous tourist destinations as well as the presence of pharmaceutical, cosmetic and food manufacturers are key driving factors for the market.
Increasing demand for these products by non-Muslim consumers in Europe and Americas is expected to drive these regional markets, and are together anticipated to contribute to 9.6% of the global revenues generated in 2024. Increasing tourism is expected to open new opportunities for halal products & services in these regions over the next few years.
Key vendors include Diana Kotb, Al-Salam Bank, MMA Bio Lab Sdn Bhd, Nema Food Company, and CCM Pharmaceuticals Sdn Bhd. There is no noted trend of companies diversifying their offering to include other types of products and services.
Research Support Specialist, USA