The Middle-East and Africa market for halal food and beverage is projected to witness a CAGR of 5.8%, during the forecast period (2020-2025).
- The growing awareness of halal food and its positioning as hygienic and healthy food among, both, Muslim and non-Muslim communities, resulted in an increase in the consumption and acceptance of halal food, which is expected to drive the demand over the forecast period.
- The assurance of integrity throughout the Halal supply chain has become a major concern for Muslim consumers, with fraudulent Halal certification and physical contamination of food products on the rise. Hence, supply chain integrity needs to be protected right from the point of animal slaughter and including transportation, storage, to the handling of Halal products.
Key Market Trends
Growing Muslim Population in the Middle East
The increased demand for halal-certified products in the past few years is attributed to the growing population of Muslims and the rise in disposable income to utilize these products and services, and the same factors are expected to further augment the growth of the market over the coming years. Finally, there is greater awareness among Muslims on the need and necessity to consume only Halal food. Halal products are gaining wider recognition not only due to meeting Sharia requirements, but also hygiene, sanitation, and safety aspects. Islam is now the fastest-growing religion in the world, thus the growing Muslim population, as well as economic development in countries with large populations of Muslims, makes the halal food and beverage a profitable segment to invest in to meet the demand.
Saudi Arabia Holds the Major Share in the Market
Saudi Arabia is likely to be the fastest-growing country, along with holding the largest market share for the growth of the halal food and beverage market, during the forecast period. The country is also the largest food and beverage producer in the Gulf region. However, the rapidly increasing population has resulted in surpassing the food supply and forcing the country to depend on imports, which fuels the demand for Halal food products. The Government of Saudi Arabia has been introducing new policies to support the production of more halal food. These policies are anticipated to make the country self-sufficient in food and beverage production and offer better opportunities for domestic producers to vary in livestock, such as poultry, camel, sheep, and dairy production.
The Middle-East and Africa halal food and beverage market is fragmented, with the presence of several players competing for market share. The major companies are focusing on expansion, new product developments, mergers and acquisitions, and partnerships to gain a competitive advantage. The key players in the market are Al Islami Foods, Podravka Gulf FZE, Al Rawdah, JBS SA, and BRF SA.
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