Rising Consumer Demand For Safe & Healthy Food Products to drive the market for Halal ingredients

Monday, November 2nd, 2020

The market for halal ingredients is expected to grow despite the global pandemic.

The term “halal ingredients” often refers to various common food ingredients that abide by the laws of Islam. According to the Islamic Council of Victoria (ICV), Islamic dietary laws define halal as foods which are free of products made from alcohol, pig/pork/ham, dog, and human components. Moreover, the ingredients such as gelatin, enzymes, emulsifiers, and food flavours are usually not considered halal as their origins are sometimes not clear. For meat and poultry foods, animals such as cows, veal, lamb, sheep, goat, turkey, chicken, duck, bison, and venison are considered halal. These animals should be slaughtered as per the Islamic law, to be considered halal. 

Besides the food and beverage industry, halal ingredients also have applications in the cosmetics industry. According to an article published in the Multidisciplinary Digital Publishing Institute (MDPI), Halal cosmetic ingredients are any constituents derived from plants, soil, water, permissible animals slaughtered according to Islamic law, marine animals that are deemed halal, and synthetic materials that are safe for consumers and are unadulterated. As a result of the rising demand for beauty products with halal certifications, consumer demand of halal cosmetics is rising. Manufacturing of products such as lipsticks, creams, and soaps are regulated to ensure that all the ingredients used are considered halal in nature. 

Due to a rise in the awareness and population of Muslim consumers who seek food and beverages that are halal-certified, the demand for halal ingredients is expected to rise.

Halal ingredients are also gaining traction in the healthcare and pharmaceutical industries due to the growing demand for dietary supplements and their associated health benefits. The demand for on-the-go, convenient, nutritionally enriched, and functional food & beverage products has witnessed a sharp rise among urban consumers due to their busy lifestyles. The growing trends of healthy snacking and increasing awareness about functional food & beverage products are also projected to drive the market for halal ingredients during the forecast period.


Market Trends

Food companies are focusing on product innovations and providing halal products to cater to the growing demand among consumers. In addition, companies are focusing on gaining consumer trust with several marketing campaigns and coming up with a wide variety of halal food products for consumers, which is positively stimulating the growth of the market. The health benefits and cleanliness associated with halal-certified foods are also driving the halal ingredients market in the food industry. The growing standardisation in the halal certification sector is projected to offer growth opportunities to the halal ingredient manufacturers in the food & beverage industry.

The demand for a variety of flavoured food is attributed to the changing consumer preferences toward convenience foods and rising demand for consumer products. The increasing popularity of new and innovative flavours in convenience and ready-to-eat food products among the young generation is also driving the demand for halal-based flavours in the markets. The majority of the flavour companies are inclined toward obtaining halal certification due to the growing demand, which is projected to create profitable opportunities for manufacturers in the halal ingredients market.


Regional Trends

The Middle East is projected to be the fastest-growing regional market for halal ingredients in 2019. Favourable government regulations in GCC countries for halal food is driving the halal ingredients market. The growing population in the Middle Eastern countries is driving the overall halal food market. Global players are expanding their businesses in the Middle East to cater to the increasing demand for halal ingredients. In addition, rapid economic growth, as a result of the stable political environment in countries such as Saudi Arabia, Iran, and the UAE, is contributing to the growth in the food & beverage and consumer product industries. Similarly, the growing population and increase in the disposable income in the region are factors driving the demand for products manufactured using halal ingredients, which in turn, is projected to drive the halal ingredients market.


Impact Of COVID-19 On The Halal Ingredients Market

The pandemic has contributed to an increase in awareness among consumers about the importance of consuming halal and hygienic food. It has also led to a blanket ban on wild animal trade and consumption. On the other side, halal travel (halal travel/tourism is a subcategory of tourism inclined toward the Muslim families who abide by rules of Islam. The tourism includes hotels and destinations do not serve alcohol and have separate swimming pools and spa facilities for men and women) and halal cosmetics are affected as they does not come under essential commodities in many countries. 

According to the Islamic Services of America (ISA), the demand for Halal products has not been adversely impacted by COVID-19. The need for halal-certified products continues to grow as part of the consumable and non-consumable supply chain.

The key driving factor for halal ingredients is product innovation by end-user companies operating in the halal landscape. The increasing demand of halal-certified products in the personal care industry is one of the key trends driving the market. 

A key driving factor for halal ingredients in the region is the increasing demand for convenience and ready-to-eat food, due to which there has been growth in food retail and quick-service restaurants (QSRs). These food retailers use halal ingredients in their products to cater to the high demand from consumers. All these factors eventually affect the halal ingredients market, which is expected to grow despite the global pandemic.


What Does The Future Hold For The Industry?

Rapid growth and interest in halal food have captured significant attention across the food & beverage industry, which is creating tremendous opportunities for manufacturers. Globally, changing lifestyles and the growing spending capacity, rising awareness about beautification, increase in per capita income, and urbanised populations are also driving the growth of the global halal cosmetic ingredients market.


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