Halal Food Market - Future Direction of Halal,Challenges on its way & creation of a new Food Industry

Under Islamic tradition, Halal food refers to lawful or permissible food and drinks which can be consumed. Halal food market has curved out to be a general conception covering the concept of clean, healthier, and fresh food production & services. The shift in Muslim & non-Muslim consumers awareness about halal food products proposes resilient opportunities for a considerably quick growth of halal food industry over the forecast period.

The halal food industry responds to the desires & needs of the consumer. People across the globe are more conscious about health, and nutrition. Many people are interested in organic foods produced without using synthetic pesticides or any other non-natural chemicals. The ethnic and religious diversity in North American and European region has encouraged the halal food business to prepare products suitable for various groups such as the Chinese, Japanese, Italian, Indian, Mexican, Seventh Day Adventist, vegetarian, Jewish, and Muslim.

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The halal food reassures that the product is safe & clean for consumption and has been prepared with a hygienic custom. The rising concern over hygiene & health is one of the significant factors contributing to the growth of the market. Moreover, food quality is sustained in halal-certified foodstuffs as halal-certified foods guarantees for sanitization & cleanliness. Such factors also drive the demand for halal foods from the non-Muslim population as well. Governments of major Islamic & non-Islamic countries along with the halal-certified food manufacturers have been taking numerous initiatives from various marketing campaigns & customer awareness regarding halal products. Also, rising consciousness for halal food procedures of animal slaughtering has an optimistic influence on the market. For example, from 2013, the Netherland government has requested European Commission (EC) to attach a sticky label on all non-stunned halal products. As per the government policies, transparency in the slaughter process has been employed so as to keep the religious unharmed.

One of the ongoing trends gaining traction in the halal food market over the forecast period is the rising demand for food conveniences. With the enhancement of living standards, disposable incomes, and lifestyles of consumers in Muslim regions, the procurement and demand for packaged & convenient foods are escalated. Factors including short preparation time for halal food and ease of cooking have improved the segment demand, specifically in the children, teenagers, and working class. Although major hurdles faced by the halal food industry includes product transparency & quality, halal certification, brand positioning, and retail placement.

The global halal food market has been segmented by product, by distribution channel and by end users. On the basis of products, the halal food market is been segmented as meat & alternatives, fruits & vegetables, grain products, milk & milk products, and other halal food & beverage products. Based on distribution, the market is divided as traditional retailers, supermarkets & hypermarkets, and others. End-user segment is bifurcated as retail and foodservices.

Asia Pacific is anticipated to be the largest market in terms of revenue generation owing to largest Muslim population in the world. More than 65% of the global Muslim population belongs to this region. Indonesia, India, Pakistan, Myanmar, Bangladesh, and Morocco are few of the Asia Pacific nations with the major Muslim population in the world. Henceforth, nourishing this massive community in Asia Pacific has led to the significant growth of the halal food market.

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Middle East and African nations are also sheltering over 327 million Muslims and are increasing potential opportunities for importers. The swelling population and growing consumer awareness towards Islamic lifestyle especially in the Middle East is one of the key factors driving the sector growth.

The global halal food sector is quite an uneven market with few companies such as Kellogg, Nestlé, Glanbia Cheese Ltd, Coco Cola Ltd., Guenther Bakeries UK Ltd, Kellogg’s Supply Services Ltd, Guenther Bakeries UK Ltd, and Royal Unibrew A/S functioning from various regions. Nestlé exclusively establish around 35% of the global revenue. The lack of international certification and standards variation in different regions is a major challenge confronted by the market players.

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