Bangladesh Expands Halal Exports to Meet Global Demand

The global halal food market is a juggernaut, valued at $2.99 trillion in 2025 and expected to grow at a compound annual growth rate (CAGR) of 9% through 2034. Halal, meaning permissible in Islamic law, ensures food is free from prohibited ingredients like pork or alcohol and is prepared in hygienic, sharia-compliant conditions. But it’s not just the 2 billion Muslims worldwide driving this demand. Non-Muslims are increasingly choosing halal products for their reputation for safety, cleanliness, and ethical production. Countries like Saudi Arabia, the UAE, Malaysia, and Indonesia are major markets, but Europe and North America are also seeing rising demand, with the UK’s halal market growing steadily due to its Muslim population and health-conscious consumers.

Bangladesh, with its 92% Muslim population and a domestic halal market worth $107 billion, is perfectly positioned to capitalize on this trend. In the 2022-23 fiscal year, the country exported halal products worth $843 million, primarily to Muslim-majority nations like those in the Gulf. However, experts believe this is just the tip of the iceberg. With the right strategies, Bangladesh could capture 2-3% of the global halal market, potentially boosting its economy by billions.

Government and Industry Lead the Charge

Bangladesh’s halal export boom is fueled by a mix of government initiatives and private-sector innovation. In November 2023, the Ministry of Religious Affairs introduced a groundbreaking halal certification policy, a move that’s been a game-changer for exporters. This policy, developed by the Bangladesh Islamic Foundation (BIF) since 2015, provides clear guidelines for companies to meet international halal standards, making it easier to access markets like Saudi Arabia and the UAE. Since 2007, BIF has certified 179 companies, with 62 actively exporting over 200 products, including meat, poultry, and processed foods.

The Bangladesh Standards and Testing Institution (BSTI) has also stepped up, gaining authority to issue halal certificates alongside BIF. As a member of the Standards and Metrology Institute for Islamic Countries (SMIIC), BSTI has adopted 10 SMIIC standards, ensuring Bangladeshi products meet global benchmarks. This is crucial, as importers in Muslim-majority countries require rigorous certification to verify compliance. In 2024, Malaysia’s Department of Islamic Development (JAKIM) renewed its approval of BIF as a halal certification body, opening doors to the $661 billion global halal market. Recent collaborations with Saudi Arabia’s Accreditation Centre and Malaysia’s Islamic Development Bank are further boosting Bangladesh’s credibility.

Local companies like Square, Pran, ACI, Bengal Meat, and Nestlé Bangladesh are at the forefront, producing everything from halal-certified red meat to snacks and dairy products. Imtiaz Firoze, Head of Marketing at Square Food & Beverage, told The Business Standard, “We already comply with halal food standards. However, the introduction of this policy will surely have a positive impact by providing a clear framework.” The policy allows certifications valid for one year, with extensions of up to three years for compliant factories, encouraging long-term investment in quality.

Overcoming Challenges in Certification and Quality

While Bangladesh is making strides, challenges remain. Certification capacity has been a bottleneck, with BIF historically being the sole authority, leading to delays. Although BSTI’s involvement has eased this, the process involves multiple government bodies, including the Department of Livestock Services and Department of Agricultural Extension, which can create bureaucratic hurdles. Enamul Hafiz Latifee, a former Dhaka Chamber of Commerce researcher, warns that this complexity could slow progress unless streamlined.

Global recognition of Bangladesh’s halal certificates is another hurdle. While Malaysia’s JAKIM approval is a significant win, certifications from countries like India are often linked to internationally recognized bodies, giving them an edge. Blockchain technology could help, offering transparency and traceability to build trust among importers. However, adopting such innovations requires investment and expertise, areas where Bangladesh is still developing.

Quality assurance is critical, particularly for meat and poultry exports. Bangladeshi products have faced challenges meeting the stringent hygiene and health standards of Gulf countries. For example, the UAE and Saudi Arabia require detailed health certificates that Bangladesh’s systems sometimes struggle to provide consistently. This has limited exports to high-value markets, with most currently directed to the Middle East. Additionally, Bangladeshi meat can be pricier—$6.41 per kilogram compared to India’s $3.36—due to smaller-scale production, which hinders economies of scale.

Strategic Moves and Market Diversification

To overcome these challenges, Bangladesh is taking bold steps. The government is exploring partnerships with Gulf nations, with discussions underway to establish a halal meat processing facility in a special industrial zone with UAE investment. This could boost production capacity and meet international standards. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is also collaborating with the Islamic Organisation for Food Security (IOFS) to enhance market access.

Diversifying markets is a key focus. While the Gulf remains a priority, experts like Jahangir Alam from the Dhaka School of Economics urge exploration of European and Southeast Asian markets. The EU’s halal market, worth $35 billion annually, is growing at 15% per year, driven by both Muslim and non-Muslim consumers seeking hygienic, ethically sourced products. Bangladesh could follow India’s lead, which has successfully exported halal snacks like papad to Europe.

The poultry sector, a major contributor to Bangladesh’s 8.7 million tons of annual meat production, is also ripe for growth. With poultry consumption rising from 17.3 grams to 26.2 grams per capita daily between 2016 and 2022, demand for processed, halal-certified poultry is surging. However, the lack of specific Harmonised System (HS) codes for halal products hinders exporters. The government is working to address this, alongside improving cold chain infrastructure to ensure product quality during transport.

Innovations and Future Opportunities

Innovation is at the heart of Bangladesh’s halal export strategy. Companies are diversifying into frozen meals, snacks, and dairy products, appealing to younger, urban consumers globally. E-commerce platforms are making it easier to reach international markets, while regional trade agreements, like those within ASEAN, are facilitating smoother exports. Sustainability is also gaining traction, with producers exploring eco-friendly packaging and ethical animal welfare practices that align with halal principles.

The government’s push for export diversification is critical as Bangladesh transitions from least developed country (LDC) status in 2024, losing certain trade benefits. Halal exports offer a path to increase foreign exchange reserves, which stood at $19.94 billion in January 2025. Capturing even a small share of the global halal market could transform the economy, as noted by Abu Saleh Patwary of BIF: “If we can grab 2 to 3% of global halal markets, it will boost our economy a lot.”

Why This Matters for Bangladesh and Beyond

Bangladesh’s halal export expansion is more than an economic strategy—it’s a story of cultural alignment and global ambition. By leveraging its Muslim-majority population and agricultural strengths, the country is building bridges to international markets. For consumers worldwide, this means more access to safe, ethical, and high-quality halal products. For Bangladeshi businesses, it’s an opportunity to compete with global giants like Brazil and Australia, which dominate halal meat exports with $5.19 billion and $2.36 billion annually, respectively.

As Bangladesh continues to refine its certification processes, invest in quality, and explore new markets, its halal industry is set to shine. The journey isn’t without challenges, but with strategic planning and innovation, Bangladesh is ready to claim its slice of the $6.49 trillion halal market by 2034. The world is hungry for halal, and Bangladesh is serving up opportunity.