How Big is the Halal Market in the US? Market Value and Opportunities
The US Muslim population is growing, and the halal food industry is keeping pace with demand.
The global halal food industry is expected to witness significant growth over the forecast period owing to the increasing Muslim population and their substantially increasing expenditure on food & non-beverages, which is considered as the main driving force of this market.
The total Islamic population is expected to increase from 23% in the present situation to around 30% of the total world population by 2030.
Halal product distribution happens through various channels, including traditional retailers, supermarkets, and online.
Globally, most halal food sales occur through traditional markets, but in the United States supermarkets are the primary food distribution channel, and halal sales through grocery stores, hypermarkets, and convenience stores are increasing quickly.
For Whole Foods Market, a major natural foods supermarket chain in the US, halal is one of the fastest-growing segments.
Meat and retail foods already make up a large part of the halal market, and halal certification will be increasingly important as the population of Muslims grows in the US, where meat and processed food consumption tends to be high.
In fact, this global shift in dietary patterns is an important factor driving demand for certified halal food.
Halal Market Size and Opportunity
Until recent years diets in most Muslim majority countries have been based primarily on home-cooked food made with whole fresh ingredients such as grains, vegetables, fruits, and nuts, which do not generally require certification, and meat slaughtered locally – even by a family member or neighbor – that was known to be halal through personal localized trust networks.
Increasingly, diets around the world include commercially processed foods and meat slaughtered by strangers.
These foods must be certified halal because snack cakes, ready-to-eat meals, or ground beef purchased at a supermarket cannot be assumed to be halal in the way that an eggplant, almond, or home-raised chicken can.
This is a concern even in Muslim-majority countries, but particularly in non-Muslim countries like the US.
Thus, as the American Muslim population grows and global Muslims change their eating habits, demand for halal-certified food will surge. Since processed foods in particular are typically branded products, halal options will increasingly be part of a brand portfolio that caters to a wide range of consumers’ needs and preferences, much like organic, gluten-free, and vegan.
As a result, halal certification will be particularly relevant to US-based companies with a presence abroad.
Halal Market Abroad
The majority of Muslims live in Southeast Asia and the Middle East/North Africa regions which accounted for 57% of the global halal market in 2015 according to the Global Halal Food Market 2019 report by Analytical Research Cognizance.
Both regions are experiencing significant economic growth and consumers will be demanding more halal products.
For any US-based companies hoping to invest in these regions, halal certification will likely be an essential prerequisite to market entry.
Major international food corporations, including Nestlé, Cargill, and Unilever are already taking a keen interest in certified halal brands and ingredients.
As American and global demand for halal food grows, food producers, processors, and certifiers are expanding their capacity to meet it, and halal certification is becoming easier thanks to evolving technology.
For example, blockchain has allowed certifiers to confirm compliance at each stage of production, reducing the likelihood of fraud, and biotechnology innovations have allowed for nano-sensor analysis to detect traces of pork in processed foods.
These developments contribute to market growth by making it possible to certify more products with greater confidence.
Halal Market in the US
The market region of North America, with regard to halal food and ingredients market, segregated into countries of the US and Canada for further analysis.
In the US, Muslims immigrating, especially from Pakistan, Arab countries, and South Asian countries, along with the
African Muslims, adds to the growth of the total Muslim population.
In the forthcoming years, the growing Muslim population is expected to impact the expansion and growth of the food and beverage industry in the US, owing to the specific demands of the Muslim population.
The growing knowledge about personal health and nutrition among non-Muslims Americans promotes halal food and beverages, which is based on the idea of clean, fresh, and hygienic, food & beverages.
The consumers are more open to adopting unconventional food domains like halal food as a result of increasing awareness regarding nutritional benefits.
However, strict rules and regulations are imposed by the government to regulate the halal food industry, and for controlling mislabeling and deceptive practices.
The eminent companies are looking for developed technologies and other sources to produce safe, efficient, and affordable halal food and beverages. Such factors influence the growth of the US market region, which, in turn, impacts the growth of the overall market region.
The global halal food market was valued at USD 436.8 billion in 2016 and is estimated to grow at a CAGR of 6.1% over the next eight years
Milk & milk products such as processed milk, cheese, and yogurt are expected to be one of another primary product segment driving growth for the global industry
Beverages such as carbonated drinks, packaged juice, and sweeteners with halal certification are expected to witness substantial demand over the forecast period. The segment is estimated to grow at a CAGR of over 4.9% in Turkey.
The Asia Pacific was the leading consumer in 2016. Around 63% of the global Muslim population resides in this region, which is the main driving factor in the region. Indonesia and Malaysia together accounted for over 55% of the regional demand in 2016.
Major companies actively operating in the global halal food industry include Nestlé, Glanbia Cheese Ltd, Guenther Bakeries UK Ltd, Kellogg’.
Companies have been trying to strengthen consumer trust with several marketing campaigns trying to be transparent about their production process of packed halal foods.