Halal Ingredients Market Estimated At US$245 Billion

Thursday, June 23rd, 2016 | 661 Views

The global market for halal ingredients is estimated at US$245 million, according to a report by Reuters.

The report, issued in partnership with Salaam Gateway and DinarStandard, focuses on more than 300 halal ingredients manufactured globally and consumed by the halal/Muslim customer segment. It looked at halal ingredients spanning across the global food, pharmaceutical and cosmetics industries.

The report featured ingredients that are most effected by halal compliance processes, such as gelatin, pepsin (used commonly in cheese), and carmine (food colouring). It also highlighted the Organization of Islamic Countries’ (OIC) imports of halal ingredients which reached US$33 billion in 2015.

“There will be an upward growth trajectory in the size of the halal ingredients market—the status quo cannot continue. Muslim consumers will become more aware of what they are actually eating and eventually standards will become stringent and more widely applied,” said Haroon Latif, director of strategic insights at DinarStandard and lead analyst.

Mustafa Adil, head of Islamic Finance at Thomson Reuters, said: “We are proud to provide an insightful perspective of the Islamic economy trends and opportunities. The topic of halal ingredients is an important one given that sourcing these ingredients continues to be a key challenge for many food, cosmetics and pharmaceuticals companies that seek to address Muslim demand.”

The report also noted that many opportunities exist for prospective players in the halal ingredients market, which include companies, private equity investors and e-commerce platforms.

In a separate report also produced by Reuters in collaboration with DinarStandard and commissioned by the Government of Dubai, the Global Islamic Economy Report, it was reported that worldwide spending on global halal food and lifestyle products could rise 10.8 percent a year until 2019 to create an international industry worth US$3.7 trillion.

According to the report, the halal food sector alone will grow to a valuation of US$2.54 trillion by 2019, up from US$795 billion in 2014, equating to 21.2 percent of global food expenditure.