Halal Ingredients Market Size, Share, Industry Analysis, Trends, Growth, Forecasts, 2030

Halal Ingredients Industry Prospective:

The global halal ingredients market size was evaluated at $55 billion in 2023 and is slated to hit $78 billion by the end of 2032 with a CAGR of nearly 3.9% between 2024 and 2032.

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Halal Ingredients Market: Overview

Halal ingredients are the products permissible in the Islamic laws and it is used in manufacturing a slew of product ranges. In the past, halal was a concept meant for individuals belonging to the Islamic faith. However, with the changing times halal has become a universal concept. Furthermore, halal ingredients and their products are termed as another name for clean, healthy, and fresh food products and this is likely to prompt the growth of the market globally.

Key Insights

• As per the analysis shared by our research analyst, the global halal ingredients market is projected to expand annually at the annual growth rate of around 3.9% over the forecast timespan (2024-2032)
• In terms of revenue, the global halal ingredients market size was evaluated at nearly $55 billion in 2023 and is expected to reach $78 billion by 2032.
• The global halal ingredients market is anticipated to grow rapidly over the forecast timeline owing to the increasing use of halal ingredients in the healthcare and pharmaceutical industries subject to the escalating demand for dietary supplements and their health benefits.
• In terms of type, the ingredients for the food & beverage industry segment are slated to register the fastest CAGR over the forecast period.
• Based on application, the food & beverages segment is projected to dominate the segmental space in the forecast timeline.
• Region-wise, the European halal ingredients industry is projected to register the highest gains over the forecast timeframe.

Halal Ingredients Market: Growth Factors

Huge consumption of halal products to embellish the expansion of the global halal ingredients market by 2032

Escalating the intake of halal products that are produced through the utilization of halal ingredients will propel the growth of the global halal ingredients market. The rise in the Muslim population globally will steer the expansion of the global market. Furthermore, the increasing use of halal ingredients in the healthcare and pharmaceutical industries owing to the increasing demand for dietary supplements and their health benefits is expected to surge the market growth during the forecast period. Additionally, the requirement for on-the-go, convenient, nutritionally enriched, and functional food & beverage items owing to the busy lifestyle is another key factor driving the global halal ingredients market surge.

Escalating awareness about functional food & beverage products and healthy snacking will further bolster the global market expansion. The food companies are basically trying to gain the trust of consumers through several marketing initiatives and developing a variety of halal products, thereby boosting the global growth of the global halal ingredients market. The major factor driving the global market surge is the health benefits and cleanliness associated with halal-certified foods. The growing population and rising disposable income in the region are factors fuelling the sales of halal ingredients-based products which, in turn, are predicted to supplement the growth of the market across the globe.

Halal Ingredients Market: Restraints

A surge in the manufacturing prices of the product can hinder the global industry expansion by 2032

A rise in the production costs of various kinds of halal products owing to surging costs of some of the halal ingredients can impede the expansion of the halal ingredients industry globally. In addition to this, misconceptions associated with halal products can put brakes on the global industry.

Halal Ingredients Market: Opportunities

Standard protocols for halal certification to open new growth avenues for the global market over forecast period

Escalating standardization in the halal certification sector is estimated to provide new growth avenues for the halal ingredient producers in the food and beverage industry. The increasing demand for flavors among the younger generation in convenience foods coupled with high consumer product demand is anticipated to help halal-based flavors dominate the global halal ingredients market.

Halal Ingredients Market: Challenges

Strict laws about purchase of the product to put a big challenge for the global industry

Strict legislation pertaining to the purchase & sale of the product along with supply chain fluctuations leading to a deficit in the supply of the products have put a huge challenge for the global halal ingredients industry growth. Growing environmental pollution due to the emission of greenhouse gases owing to the production of meat-based food products can have a huge & lasting impact on the growth of the industry across the globe.

Halal Ingredients Market: Segmentation

The global halal ingredients market is sectored into type, application, and region.                                    

In terms of type, the halal ingredients market across the globe is segregated into ingredients for the food & beverage industry, ingredients for the pharmaceutical industry, and ingredients for cosmetics industry segments. Furthermore, the ingredients for the food & beverage industry segment, which acquired about 58% of the global market profits in 2023, is predicted to register the fastest CAGR during the period from 2024 to 2032. Moreover, the segmental surge in the ensuing years can be attributed to the high focus of food companies on producing halal ingredients. In addition to this, surging end-user preference for ready-to-eat food along with demand for flavoring ingredients is anticipated to steer the growth of the halal ingredients market globally.

Based on the application, the global halal ingredients industry is divided into food & beverages, pharmaceuticals, and cosmetics segments. Moreover, the food & beverages segment, which led the application space in 2023, is projected to dominate the segmental expansion in the upcoming years. The growth of the segment in the forecast timeline can be due to the growing intake of halal foods by people across the globe owing to their beneficial effects on the health of individuals.

Halal Ingredients Market: Report Scope

Halal Ingredients Market: Regional Insights

The Middle East & Africa is expected to dominate the global halal ingredients market growth over the period from 2024 to 2032

The Middle East & Africa, which accounted for nearly 57% of the global halal ingredients market share in 2023, will be the leading region in the coming seven years. Moreover, the regional market expansion over the forecast timeline can be attributed to favorable laws in GCC nations. In addition to this, swift economic expansion in Middle Eastern nations such as UAE, Saudi Arabia, and Iran will further steer the expansion of the halal ingredients market in the Middle East & Africa. The rising population and surge in the per capita income in the region will embellish the regional market trends. The presence of key players in the countries of the Middle East will embellish the regional market trends.

The European halal ingredients industry is expected to record the fastest cumulative annual growth rate in the forecasting timespan. The growth of the industry in the sub-continent in the forecast period can be due to the growing intake of halal foods in countries such as Germany. Moreover, France possesses the highest Muslim population and this can contribute lucratively towards the regional industry surge in the coming years.

Halal Ingredients Market: Competitive Space

The global halal ingredients market profiles key players such as:

• Cargill
• Ashland
• Koninklijke DSM N.V.
• ADM
• BASF
• DowDupont
• Solvay S.A.
• Kerry
• Symrise
• Purecircle Limited
• Barentz B.V.
• Halagel

The major tactics implemented by these leading companies in the market are mergers & acquisitions, new product launches, and collaborations. These companies are focusing more on investment in innovations, expansions, and partnerships to increase their market share.

The global halal ingredients market is segmented as follows:

By Type

• Ingredients for Food & Beverage Industry
• Ingredients for Pharmaceutical Industry
• Ingredients for Cosmetics Industry

By Application

• Food & Beverages
• Pharmaceuticals
• Cosmetics

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa