The global halal market size was valued at USD 5.73 trillion in 2016 and is expected to grow on account of rising Muslim population and increasing availability of these products & services. Increasing spending on Halal products & services by consumers besides Muslims is expected to trigger the growth of the market over the forecast period.
The Islamic finance sector has witnessed tremendous growth over the past few years with the emergence of crowd funding platforms including Human Crescent. Lack of awareness has resulted in an enormous opportunity for products & services offered by this segment. The segment is likely to grow at a CAGR of 10.5% from 2017 to 2024.
Speedy growth of economies in the Middle East and South East Asia are expected to augment the growth of the market owing to the presence of large Muslim population. These economies are likely to emerge as popular destinations for food and fashion. The Middle East halal market is expected to witness a double-digit growth generating revenues worth USD 6.53 trillion by 2024.
The demand for qualified halal products among non-Muslim customers has been on the upsurge as more consumers are looking for high superiority, safe and righteous products. Non-Muslim consumers in Asia Pacific are likely to play a vital role in driving the regional market making it the second largest marketplace after the Middle East, contributing to 30.9% of the global revenues by 2024.
The Islamic economy is being driven primarily by the increasing youth population with high disposable incomes. These factors are likely to drive various segments of the halal market including fashion, food, finance, travel, and media & recreation. Moreover, increasing availability of these products & services is expected to fuel the growth of the market over the projected period.
Keeping in mind the growth of the global halal industry, several food companies including KFC and Nestle are offering halal products to their Muslim consumers. The emergence of Islamic finance institutions offering finance and banking assets are expected to provide further impetus to businesses that are focusing on venturing into the halal industry, thereby resulting in tremendous growth of the global halal industry over the next few years.
Hexa Research has segmented the global halal market based on product and region:
Segmentation by region, 2014 - 2024 (USD Billion)
• Asia Pacific
• Middle East
• Saudi Arabia
Key players analysed:
• Diana Kotb
• Al-Rajhi Bank
• Al-Salam Bank
• MMA Bio Lab Sdn Bhd
• Ivy Beauty Corporation Sdn Bhd
• Nema Food Company
• Chemical Company of Malaysia Berhad (CCM Pharmaceuticals Sdn Bhd)
• Pharmaniaga Bhd
The growing size of the youth population with high disposable income utilising these products & services is expected to augment the growth of the halal market. Rising demand for halal products including cosmetics, pharmaceuticals and food & beverages in accordance with the traditional Islamic law is expected to drive the global industry growth.