Lack of Global Regulatory Body for Certification of Halal Food Products
Although there are regulatory body present in individual member states across nations, there might be difference in the halal standards in different nations owing to lack of global regulatory body. Presence of a global regulatory body restricts adoption of different halal standards, and also induces exports and trade of halal food products across the globe. The lack of global regulatory body for certification of halal food products is anticipated to act as a barrier to the growth of the halal food market.
The halal food market is observing vibrant growth on account of growing Muslim population worldwide coupled with improvement in supply chain in the retail sector. Additionally, Muslim consumers are continuously influenced by the health benefits offered by halal food items, which is also raising the consumption of halal foods, along with growing acceptance among non-Islamic communities. With growing number of consumers preferring for halal foods, food producers are increasing the varieties that can be offered to the consumers. All of these notable factors are contributing significantly towards the growth of the halal food market. According to the statistics by Pew Research Center, the Muslim population was estimated at 1,619,356,945 persons in 2010 and is projected to reach 2,190,191,946 persons in 2030 amongst 232 countries around the globe. CLICK TO DOWNLOAD SAMPLE REPORT
The market is anticipated to record a CAGR of around 10.9% throughout the forecast period, i.e. 2019-2027. The halal food market is segmented by product type into diary, meat, grain, vegan and others, out of which, meat segment is anticipated to hold largest market share owing to rising consumption of meat and meat products in the world. According to Organisation for Economic Co-operation and Development (OECD), total varieties of meat consumption around the globe grew from 179145 thousand tonnes in 2010 to 206753 thousand tonnes in 2018.
Similarities Between Halal Foods And Kosher Foods
There are many similarities between halal foods and kosher foods. Kosher foods are usually preferred by the growing Jewish community, which is anticipated to be a prime consumer group for the halal food market. Additionally, unavailability of halal products in Jewish nations is anticipated to drive the growth of the halal food market over the forecast period. According to Jewish Virtual Library, Jewish population increased from 12,079,000 numbers in 1960 to 14,606,000 numbers in 2018.
Growing Demand For Halal Foods by Commercial Food Service Establishments
Various commercial food service establishments are increasing their product offering by including halal certified food products into their existing food category owing to increasing competition and growing food-away-from-home spends. All of these factors are anticipated to support the growth of the halal food market throughout the forecast period. According to Economic Research Service of the United States Department of Agriculture (USDA), food spending by U.S. consumers, businesses, and government entities totaled $1.74 trillion USD, out of which, food-away-from-home accounted for 54.4% of total food expenditures, during the year 2018.
Our in-depth analysis of the halal food market includes the following segments:
By Product Type
By Distribution Channel
By End User
On the basis of regional analysis, the halal food market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Middle East and Asia Pacific is expected to hold significant market share on the back of growing Muslim population in the region. Furthermore, growing awareness for halal food products amongst the people, coupled with multi-cultural diversity and complexion amongst Southeast Asia nations is stimulating the development of world’s most advanced halal standards and certification agencies, which is anticipated to raise the demand for halal food products in the region. Additionally, presence of large number of Muslim and Jewish community nations in the region is also anticipated to propel the growth of the market during the forecast period.
The halal food market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.