The global halal Ingredients market size was valued at USD 333.84 billion in 2022 and it is projected to be worth around USD 450.82 billion by 2032 with a compound annual growth rate (CAGR) of 3.10% from 2023 to 2032.
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With growing population belonging to the Muslim community the requirement of halal products is also growing in terms of food and beverages. The supply of functional food products and beverages has driven the market during the current forecast period. Rising awareness regarding the health care sectors and the various beneficial factors that body obtains from such food products as help to boost the market during the forecast period. These products are gaining momentum in the food, health care and pharmaceutical industry due to they are varied applications in these sectors. The market also sees a bright future as a result increasing requirement of health supplements and dietary products that are provided from these food sources. As a result of the rapid organization and development that the countries are experiencing, the requirement of high nutrition content food which is provided with convenience is rising. The new train to value of the food holds an important place in the life of the busy people in these urban countries. Quick snacking instead of lengthy main course system has taken over the lifestyle of the people residing on these countries.
The uniformity of the products supplied by the halal ingredients market is sometimes questionable as a result of the heavy demand that is experience by the market due to the growing population of the Muslim community and also the other communities which prefer to go by these methods. Hence the quality that the halal ingredients market is expected to supply to the consumers as hampered and a uniform experience is lacking and the current market which hampers of the market during the forecast period. The presence of certification regarding the halal food products and beverages is also a matter of concern as a result of the increasing malpractices that are experienced in order to fulfill the growing demands. The cosmetic and beauty products industry has also been affected by such uniformity issues which have declined its sales.
The lack of standardization has also been a drawback for the halal ingredients market which makes it uncertain for the buyers to have a perfect product. The safety and quality of the products are the primary concerns that the consumer looks for when utilizing such specific type of products. The strict guidelines laid down by the government regarding the standardization of the halal ingredient products has hampered the growth of the market pertaining to the heavy loss of materials in case the products do not fall into the specified rules. Similarly, the cosmetic products beauty products and the perfume industry have also suffered due to the standardization guidelines imposed on them. Additionally, the cost of these Halal ingredient products is high due to the increasing demand by the population and their benefits that the world is becoming aware of. These products are labelled as exclusive due to the specific procedures carried out in order to prepare them. The pharmaceutical sector too has challenges in order to comply with the safety and standardization guidelines which have to be followed strictly. The products have to be labelled accordingly and quality has to remain uncompromised at all costs. Hence the cost rises marginally for these additional procedures.
Report Scope of the Halal Ingredients Market
|Market Size by 2032||USD 450.82 Billion
|Growth Rate from 2023 to 2032||
CAGR of 3.10%
|Largest Market Share in 2022||Middle East|
|Food and Beverages Segment Market Share in 2022||61%|
|Forecast Period||2023 to 2032|
|Segments Covered||Type, Product, Distribution Channels, Geography|
|Companies Mentioned||Barentz B.V., Symrise, Ashland, Purecircle Ltd, Halagel, ADM, Kerry, DowDupont, Solvay S.A., Koninklijke DSM N.V., Cargill, BASF|
The major growth factors for the halal ingredients market include the use population residing in the Muslim dominated countries that demand heavy supply of the halal ingredient products as a result of their religious practices and rules. The population of these countries is increasing day by day which increases the amount of functional food and beverages which are consumed on a daily basis. As a result of their high disposable income the purchasing power of the people is more which makes it possible for them to purchase high end costly products from the Halal ingredient products market.
The halal ingredient market also has a heavy supply to the cosmetic industry which uses the raw materials for the production of various applicants and perfumes along with numerous beauty products which receives high demand from the market. The flavour industry also helps to boost the market size as a result of the ongoing R&D which makes it possible for them to introduce new and innovative flavours in order to attract the younger generation having an extremely busy life style. The huge number of people belonging to the working class demands the supply of functional food and beverages which can be used as snacking food products in order to save time. The heavy supply of Halal raw materials to the pharmaceutical industry has also proved to be a driving force for the market as a result of the numerous medicines that are made from these materials. Due to the increasing health awareness among the people after the occurrence of the pandemic, the demand for the beneficial effects of the halal ingredient products has seen a gradual rise. The uniformity that is maintained by the halal ingredient market has helped people to gain confidence on the product supplied by the companies without having a second thought. The standardization rules set by in the government and the international market has also forced the companies to deliver quality products without compromising in the religious and social beliefs of the people. The certification system that has been adopted by the halal ingredients market has additionally help to boost the market by developing a trust among the consumers regarding the authenticity of the ingredients and the products manufactured by the company. With the increasing awareness regarding the health care sector after the occurrence of the pandemic the use of health supplements and nutritive products has increased to a great extent. The use of the halal ingredients into these nutritive supplements and health products is vast as a result of the high beneficial properties that they contain along with the cleanliness that is followed by the industries. The demands and supply of these nutritive products are seen a gradual rise with the increasing number of geriatric populations who mainly require the use of such supplements in order to maintain their health.
On the basis of type, the food and beverages market has dominated largest revenue share 61% in 2022 and expected to grow at a CAGR of 4% from 2023 to 2032. Industries I have their main attention towards the research and development regarding the products applied by the halal ingredients market in order to compete with the needs and requirements expressed by the people. Multiple marketing strategies are being adopted in order to publicize the health benefits of the halal ingredients products. The specific standardization guidelines which are followed by the companies have also help to boost the opportunities for the market.
The ultimate quality that is supplied by the halal ingredient market in order to maintain their strong presence in the society as a result of the increasing demand from the Muslim dominator countries helps the market to show a significant growth during the forecast period.
By application, the market is for the divided into cosmetics, pharmaceuticals and the food and beverages industry. In this segment the cosmetic sector has shown a considerable growth. As far as the market revenue is concerned the food and beverages market is still ruling the segment as a result of the high demand it faces as a result of its health benefits and cleanliness that it offers. The introduction of new flavours into the industry as health to keep the halal ingredient products into the fashion for longer period of time which has mainly attracted the younger generation who prefer quick snacks rather than complete meals having a proper main course. The factor of obtaining Halal certificate has become very important in order to prove the standardization of the products to the consumers.
Distribution Channel Insights
By distribution channel, the supermarkets and hypermarkets have dominated the segment as a result of the clan in Ness they provide the customers with along with the standardization process that are followed flawlessly. These outlets mostly provide certified Halal ingredient products which ensure the customer of its authenticity and quality. In order to avoid health risks in relation to cleanliness these outlets are preferred more as compared to the local retailers. The local vendors too have showcased huge returns pertaining to the sales on a daily basis and the affordability of the products that supports the disposable income of the consumers.
The Middle Eastern sector has provided the biggest market for the halal ingredients during the recent years. The rapid growth in the population belonging to the Middle East countries has increased the consumption of food products belonging to the halal ingredients market. That to support provided to this Halal ingredients market from the government in terms of their facilities, policies, terms, conditions and sales helps to expand the market throughout the country without any hassle. In 2022, Germany held 17.1% market share in the Europe region and growing at a CAGR of 4.1% over the forecast period. In the GCC Countries the Turkey market accounted 21.2% market share in 2022 and it is projected to reach at a CAGR of around 6% from 2023 to 2032.
The other countries which support the growth of the halal ingredients market are Iran, Iraq, Afghanistan, UAE and Saudi Arabia which also has a majority of Muslim population and are primarily known as Muslim countries. Hence the demand and supply in these regions have seen a tremendous growth during the forecast period which has helped the market to have a strong foot hold in these particular regions. The rapid economic development in these countries has also help to increase the disposable income present with the people that help to boost the market for the halal ingredients during the forecast period. Malaysia market accounted 24% market share in the South Asia Halal ingredients market and expected to grow at a CAGR of 5% from 2023 to 2032.
Key Market Players
Key market developments
Segments covered in the report
By Distribution Channels
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