Driving Halal Ingredients Market Growth in 2025: The Role of Surging Demand For Halal Processed Food Drives Growth In The Halal Ingredients Market

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Halal Ingredients Market Size Growth Forecast: What to Expect by 2025?
The market size for halal ingredients has experienced a consistent expansion over the past few years. It is predicted to increase from $344.52 billion in 2024 to $356.48 billion in 2025, with a compound annual growth rate (CAGR) of 3.5%. The profound growth during the historic period can be accredited to factors such as severe weather conditions, strict emission regulations, development of infrastructure, energy efficiency focus among consumers, variation in crude oil prices, and the integration of renewable energy.

How Will the Halal Ingredients Market Size Evolve and Grow by 2029?
The market size of halal ingredients is foreseen to experience consistent growth in the upcoming several years. It is anticipated to reach "$413.08 billion by 2029, growing at a compound annual growth rate (CAGR) of 3.8%. The projected expansion during the forecast period can be credited to the escalating demand for biofuels, a concentrated effort to minimize carbon emissions, adoption of intelligent heating systems, government directives on fuel quality, and upsurge in residential building. Key trends for the forecast duration encompass reduction technologies for emission, improvements on anti-gelling and cold-flow, advancement in additive technology formulations, incorporation of AI and organization partnerships and collaborations.

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What Drivers Are Propelling the Growth of Halal Ingredients Market Forward?
The halal ingredients market is projected to grow, driven by an increase in interest for halal processed food and beverages. Companies in the food and beverage industry, who are responsible for converting raw agricultural commodities into consumer food items from packaging to preparation, transportation, and service, often use halal ingredients. Such ingredients are associated with health benefits, hygiene, purity, and the guarantee of high-quality products, leading to a surge in their demand. As per a US nationwide consumer survey conducted by IFANCA, a non-profit US organization dedicated to halal certification and promotion, in September 2022, 44% of the 1,000 representative American adults interviewed agreed that halal certified food items are more humane, 42% believed they are fresher, and 41% considered them healthier compared to non-halal certified foods. Hence, this increasing demand for halal processed food and beverages is steering the development of the halal ingredients market.

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Which Emerging Trends Are Transforming the Halal Ingredients Market in 2025?
The halal ingredients market is experiencing product innovation with companies developing offerings for broader dietary preferences. In July 2022, UK-based KTC Edibles Ltd. introduced the country's first halal-certified Beef Dripping. Suitable for frying and roasting, it allows food outlets like Fish and Chip shops to serve halal consumers.

What Are the Key Segments in the Halal Ingredients Market?
The halal ingredients market covered in this report is segmented -

1) By Type: Ingredients For Food And Beverage Industry, Ingredients For Pharmaceutical Industry, Ingredients For Cosmetics Industry
2) By Distribution Channel: Online, Offline
3) By Application: Food And beverages, Pharmaceuticals, Cosmetics

Subsegments:
1) By Ingredients for the Food And Beverage Industry: Halal-certified Food Additives, Flavors And colorings, Emulsifiers And Stabilizers
2) By Ingredients For The Pharmaceutical Industry: Gelatin alternatives, Halal Excipients, Active Pharmaceutical Ingredients (APIs)
3) By Ingredients For The Cosmetics Industry: Halal-Certified Oils And Waxes, Plant-Based Extracts, Alcohol-Free Preservatives

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Who Are the Key Players Shaping the Halal Ingredients Market's Competitive Landscape?
Major companies operating in the halal ingredients market include Barentz B.V., Symrise AG, Purecircle Ltd., Halagel (M) Sdn. Bhd., ADM Barentz B.V., Kerry Group Plc., Koninklijke DSM N.V., Cargill Incorporated, The Archer-Daniels-Midland Company, DuPont de Nemours Inc., Tesco PLC, Burger King Corporation, Ingredion Incorporated, Givaudan SA, Kingherbs Limited, Del Monte Phil's. Inc., Nestle S.A., Unilever plc, BRF S.A., Ferrero International SA, Midamar Corporation, Crescent Foods Inc., Halal Ingredients Company, American Halal Company Inc., American Foods Group LLC, Al Islami Foods, Prima Quality Food Industries Sdn Bhd, AB Mauri Malaysia Sdn Bhd

What Geographic Markets Are Powering Growth in the Halal Ingredients Market?
Middle East was the largest region in the halal ingredients market in 2024. The Middle East is expected to be the fastest-growing region in the global halal ingredients market during the forecast period. The regions covered in the halal ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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