Asia Pacific to Remain Dominant Regional Market
Transparency Market Research estimates that the global halal products market was valued at US$2.70 trillion in 2015 and is expected to reach USD 10.51 trillion by 2024, exhibiting a CAGR of 16.2% from 2016 to 2024. Geographically, the halal products market in Asia Pacific accounted for over 47.0% of the global halal products market in 2015 and is also expected to be the region exhibiting the most significant growth in the next few years. In terms of product variety, the segment of processed food and beverages accounted for the dominant 25.9% share in the market in 2015 and is expected witness a vast rise throughout the forecast period as well.
Rising Global Muslim Population Key to Market Growth
Being the prime consumer of halal products, the rising population of the Muslim community across the globe is one of the most prominent drivers of the global market for halal products. Studies estimate that by 2030, nearly 26% of the world’s population will be accounted by Muslims, which is a vast rise from the 19.9% in 1990. Moreover, the rising disposable income of Islamic countries, chiefly owing to the rapid growth of the Islamic economies in Middle East and South East Asia, is also expected to contribute to the market growth in the next few years. In addition to this, the consumption of halal products by other communities is also on the rise, which is expected to further fuel the global demand for halal products.
Brochure Download for Technological Insights: http://www.transparencymarketresearch.com/sample/sample.php?flag=B&rep_id=16643
The market is also embarking upon a promising growth path owing to rising urbanization and the resultant improvement seen in the retail sector in the past few years across many key markets. Earlier, the halal food market was highly unorganized. The present-day halal products market, on the other hand, features a highly organized retail structure with the presence of a large number of retail outlets selling a vast variety of halal products. Moreover, the high degree of globalization of the halal market and multilateral trade agreements have boosted the trade flow of halal products.
Lack of Globally Uniform Standards to Hinder Market Growth
There exists a clear distinction between halal products and haram products, with the latter denoting food or daily use items unacceptable for use according to Islamic (sharia) law. Nevertheless, the difference in Islamic regulatory bodies across different countries leads to varying definitions of halal products across the globe. Hence the products accepted by the Halal Certification Board of a particular country may not be accepted in another country.
For instance Non Alcoholic Beer was accepted by the Halal certification board in the ASEAN economies. However it was rejected by their counterparts in the GCC, thus creating chaos among the manufacturers and consumers. Such lack of a global halal certification board is projected to be a significant restraint for the market in the next few years. Such lack of a regulatory body capable of monitoring all the processes involved on the production and marketing of halal products is expected be a key restrain for the global halal pharmaceutical and halal personal care market in the near future.
This review of the market is based on a recent market research report published by Transparency Market Research, titled “Halal Products Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024.”
The global market for halal products is highly diversified, comprising product varieties in the areas of food and beverages to personal care and pharmaceuticals. Halal food companies account for the dominant share in the global market’s revenue as halal food and beverages account for nearly 50% of the world’s total halal products market demand, observes a recent report by Transparency Market Research. With the fast pace of globalization and the increasingly complex nature of supply chains, end-to-end halal integrity has become a profound concern for consumers. In this scenario, companies capable of demonstrating a high level of commitment in this area have an upper hand to the companies who consider halal simply as an add-on to an existing range of product.
The leading players in the halal products market for the food and beverage segment is Nestle S.A. For halal products for cosmetic and personal care application Unilever is the leading player, besides several other notable players. Reckitt Benckiser Group plc. is one of the leading players catering to the chemical and materials industry.