by The global Halal Products Market is estimated to be valued at US$ 879.6 Bn in 2022 and is expected to exhibit a CAGR of 12.80% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Halal products refer to items that are permissible under Islamic law. These products are produced, manufactured, and distributed in a manner that complies with the Halal standards and regulations. The market for Halal products includes food and beverages, cosmetics, pharmaceuticals, and personal care products. The increasing Muslim population and growing awareness about the importance of Halal products are driving the demand for such products globally. With Muslims comprising a significant portion of the global population, the market for Halal products is expected to witness substantial growth in the coming years.
Market Key Trends:
One key trend in the Halal Products Market is the rising adoption of Halal cosmetics and personal care products. The increasing awareness about the ingredients used in cosmetic and personal care products has led to a shift in consumer preferences towards Halal products. Halal cosmetics are produced without the use of alcohol, pork-derived ingredients, and other substances forbidden in Islam. The demand for Halal cosmetics is driven by the belief that these products are not only ethically produced but also safer for consumers. With the growing Muslim population and the overall trend of clean and natural products, the market for Halal cosmetics and personal care products is expected to experience significant growth in the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Halal Products market is relatively low. This is mainly due to the high barriers to entry, including stringent regulations and certifications required to produce and distribute Halal certified products. Additionally, established companies in the market have strong brand recognition and economies of scale, making it difficult for new players to compete.
Bargaining power of buyers: The bargaining power of buyers in the Halal Products Market is moderate. While buyers have the ability to choose from a wide range of Halal certified products, their options may be limited by the availability and variety of offerings. Buyers can influence prices to some extent, but overall, the market is quite competitive, with many players vying for their business.
Bargaining power of suppliers: The bargaining power of suppliers in the Halal Products market is moderate. Suppliers of raw materials, ingredients, and packaging have the potential to exert some leverage, especially if they have limited competition. However, the market for Halal products is growing, which means suppliers have the opportunity to expand their customer base and negotiate favorable terms with manufacturers.
Threat of new substitutes: The threat of new substitutes in the Halal Products market is relatively low. Halal certification is a significant differentiating factor in this market, as it provides assurance to consumers that the products meet specific Islamic dietary requirements. While there may be non-Halal alternatives available, the strong demand for Halal certified products limits the potential impact of substitutes.
Competitive rivalry: Competitive rivalry in the Halal Products market is high. The market is fragmented, with numerous players competing for market share. Key players are constantly innovating and expanding their product portfolios to stay competitive. This leads to intense competition, price wars, and marketing strategies aimed at attracting and retaining customers.
Key Takeaways
The global Halal Products market is expected to witness high growth, exhibiting a CAGR of 12.80% over the forecast period. This growth is driven by increasing consumer demand for Halal certified products, fueled by a growing Muslim population, rising awareness about dietary restrictions, and changing lifestyle patterns.
In terms of regional analysis, the Asia Pacific region is the fastest growing and dominating region in the Halal Products market. This can be attributed to a large Muslim population in countries such as Indonesia, Malaysia, and Pakistan, where Halal products are in high demand. Additionally, government initiatives to promote Halal certification and growing disposable incomes are further driving the market in this region.
Key players operating in the Halal Products market include Nestle S.A., Cargill, The Coca Cola Company, Kellogg’s Company, Krafts Food Group Inc., Unilever Plc, GlaxoSmithKline Plc, Al Islami Foods, and L’Oreal S.A. These players have established a strong market presence through their extensive product portfolios, strong distribution networks, and strategic partnerships. They continually invest in research and development to meet evolving consumer preferences and expand their market share.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
