Increasing Global Islamic Population Steering Market Growth
Halal food simply refers to the food items prepared in accordance to islamic dietery rules and norms mentioned in the Quran (islamic scripture). As per the norms the slaughteer must speak the name of the God before cutting and the cut should be done in one continuous motion. Halal food is mostly enjoyed by islamic community. However over the last few years, this choice of food has widely gained popularity among non-islamic consumers as well. This is largely due to the fact that this choice of food has evolved its way from religion identified food choice to safe, reliable, and hygienic food. T
The global islamic population was roughly around 1.8 billion in 2015 and is anticipated to grow to nearly 3 billion by 2060. The tremendous growth in islamic population is simply due to the high fertility rate. In addition, average islamic family tend to have more children compared to other religious faith. Therefore, rising population of islamic religion is projected to drive the demand for halal food over the coming years.
Consumer Spending Influencing Market Growth
As the global islamic population grows, so is the demand for halal food. Another prominent factor promoting growth of this market is rising consumer spending for halal food. As per the stats released by the Organization of Islamic Cooperation, a Muslim consumer spending for halal food is projected to grow by nearly USD 800 billion from 2014 to 2020. Thus, healthy growth in consumer spending is projected to drive the market growth over the forecast period.
Rising popularity of halal food in non-muslim consumers also witnessed huge surge over the past few years. The changing perception of consumers towards this type of food choice is expected to positively influence the market growth over the predicted timeline. Halal food has turned out to be a symbol for hygiene, quality, and cleanliness which has contributed significantly in its popularity among non-muslim consumers. Thus, this change in perception offers huge opportunity for market vendors.
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On the basis of product, the market is segmented into dairy products, meat & seafood, fruits & vegetables, grains & cereals, and others. Within this category, meat & seafood is projected to dominate the global market. The rising demand for halal labelled meat products is expected to observe swift growth owing to rising number of islamic population.
In addition, prevalence of meat food among islamic population is expected to grow continuously. For instance, as per the stats released by the Organization of Islamic Cooperation, nearly 75% of the American Muslim and approximately 84% of the France based Muslim consume halal meat products on daily basis. Therefore, the segment is projected to observe swift growth over the forecast period.
The dairy products segment is also predicted to observe sturdy growth over the forecast period. Rising number of infants belonging to islamic religion. As per the stats published by the Organization of Islamic Cooperation, nearly 31% of the global births from 2010 to 2015 comprised of babies born to muslim parents. The growing number of muslim babies is projected to drive the dairy products segment over the coming years.
Distribution Channel Outlook
On the basis of distribution channel, the market is segmented into traditional retailers, online, supermarket & hypermarket, and others. Among this category, traditional retailer still occupy the dominant market share. However, over the coming years, the segment is projected to lose its dominant share to supermarket & hypermarket category.
As the global population moves into the urban centers, demand for halal food in supermarket & hypermarket is anticipated grow swiftly over the coming years. As per the stats released by the United Nations, nearly 54% of the global population lived in urban areas. This increased to nearly 56% in 2019. Thus, rising urbanization is considered as the primary factor pushing the supermarket & hypermarket segment growth.
Online distribution channel is predicted to observe swift growth over the forecast period. The key driver for the growth of this segment is millennial generation fascination towards convinence. The generation Is likely to remain dominant workforce over the coming years. Therefore, millennial generation is expected to positively influence the segments growth over.
The key vendors of the industry are Coco Cola, Royal Invitee, Cargill Corporation, Tahira Foods Ltd, Nestle S.A., BRF S.A., Janan Meat Ltd., Kawan Foods Berhad, Dagang Halal Food, and Al Islami Foods Co.
The industry participants are intensively focusing on enhancing regional presence through mergers & acquisitions. In addition, presence of small vendors present in the industry are likely to further intensify the competition over the predicted timeline.
Halal food is defined as the food dietary practice in accordance to the Islamic religion.
Global Halal Food Market Segmentation
-Meat & Seafoood
- Fruits & Vegetables
- Grain & Cereals
By Distribution Channel
- Traditional Retailers
- Supermarket & Hypermarket