Halal certification lets a U.S. bakery sell to Muslim consumers at home and clears a legal requirement in several export markets, including Indonesia from Oct. 18, 2026. Most bread and cookies need few changes. The work lies in a handful of ingredients: gelatin, L-cysteine, animal-derived emulsifiers, enzymes, shortening and alcohol-based flavorings.
This article was first published in December 2022. It has been updated with current market and export data, an ingredient risk table, the alcohol limits set by major Halal authorities, 2026 import rules and the certification steps published by U.S. certifiers.
Reviewed by Hafiz Maqsood Ahmed.
The business case
The market is large and growing. Muslims spent $1.53 trillion on food in 2024, a figure forecast to reach $2.06 trillion by 2029, according to DinarStandard’s State of the Global Islamic Economy Report 2025/26. The world’s Muslim population grew to about 2 billion in 2020, according to the Pew Research Center.
At home, Pew estimated that 3.45 million Muslims lived in the United States in 2017 and projected that the number would reach 8.1 million by 2050, according to its most recent U.S. estimate. Demand also comes from retailers, schools and food-service chains that want one product to serve every customer, a trend covered in our look at the U.S. Halal food industry.
Exports are the larger opportunity. U.S. exports of baked goods were worth $4.35 billion in 2024, but the top markets were Canada ($2.69 billion), Mexico ($608.7 million), Japan, South Korea and the European Union, and no Muslim-majority country made the top 10, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. The gap points to room for growth in Southeast Asia and the Gulf, where being Halal certified is often a condition of entry.
The U.S. baking industry’s direct economic impact was $186.83 billion in 2023, supporting 789,054 jobs, according to an American Bakers Association report summarized by Snack Food & Wholesale Bakery.
Which bakery ingredients cause problems
Many bakery products contain nothing objectionable, but a few common ingredients can come from pigs, from animals not slaughtered according to Islamic rules or from alcoholic drinks. The American Halal Foundation, a U.S. certifier, rates the risks in its ingredients matrix.
| Ingredient | Why it matters | Common Halal alternative |
|---|---|---|
| Gelatin (fillings, glazes, marshmallow) | Often from pork or non-Halal beef | Halal-certified bovine or fish gelatin, pectin, agar |
| L-cysteine (dough conditioner, E920) | Can be made from human hair, duck feathers or hog hair | L-cysteine from microbial fermentation or synthesis |
| Mono- and diglycerides (E471) | Can be made from animal fat such as tallow | Plant-derived, certified E471 |
| Shortening and lard | Lard is pork fat | Vegetable shortening |
| Enzymes and rennet (in dairy inputs) | Animal rennet and lipase; microbial enzymes need a check of the growth medium | Certified microbial enzymes |
| Release agents | May contain animal fats or stearates | Vegetable-based release agents |
| Flavorings and vanilla extract | Wine or rum flavors; ethanol as a carrier | Alcohol-free flavors or certified flavors within limits |
L-cysteine is the ingredient bakers most often overlook. A 2024 review in the journal Halalsphere lists human hair, duck feathers and hog hair as sources, with fermentation-based versions as the Halal option. Islamic Services of America says on its bakery page that the ingredient “is often sourced from duck feathers or human hair.”
Alcohol in flavorings: the limits differ by authority
Vanilla extract is the clearest case. U.S. federal rules require vanilla extract to contain at least 35 percent ethyl alcohol by volume, under 21 CFR 169.175. Halal authorities do not agree on one limit for alcohol used as a flavor carrier, so bakers must follow the rule of the market they sell to.
| Authority | Position on ethanol in flavorings |
|---|---|
| MUIS (Singapore) | Ethanol not from the alcoholic-drinks industry may be used as a flavoring solvent: up to 0.5% in the flavoring and 0.1% in the final product |
| Malaysia’s National Fatwa Committee (2011) | Alcohol used as a stabilizer in flavor or color is allowed if it does not come from liquor-making and the final product contains 0.5% or less |
| Indonesian Ulema Council (Fatwa No. 10, 2018) | Ethanol from alcoholic drinks is prohibited; final drinks must contain less than 0.5% ethanol; no numeric cap for foods if medically harmless |
Sources: MUIS; Federal Territory Mufti’s Office, Malaysia; LPPOM MUI. These are the positions of those bodies, not a ruling by The Halal Times. Our guide to ethanol’s halal status in food explains the scholarly debate in more detail.
What export markets require
Indonesia. Imported food and beverages must be halal certified under Government Regulation 42 of 2024, with the requirement applying from Oct. 18, 2026, according to BPJPH, Indonesia’s halal agency. The certificate must come from a foreign halal body that BPJPH recognizes, and since Sept. 9, 2026, each certified shipment must carry a halal product assurance report from that body, according to the German-Indonesian Chamber of Industry and Commerce.
Saudi Arabia. The Saudi Food and Drug Authority requires a halal certificate for imported food containing any animal-origin component, including gelatin, rennet and animal fats, and for any product labeled halal, according to its food clearance requirements. The certificate must come from a body on the SFDA’s recognized list.
Malaysia. Malaysia accepts only certifiers recognized by JAKIM. In August 2025, Trade Minister Tengku Zafrul Aziz said there would be no automatic acceptance of U.S. halal certificates, Malay Mail reported.
The practical lesson: choose a certifier recognized in each target market before starting. Our guide to halal export certification for U.S. food exporters covers recognition in more detail.
How certification works, step by step
U.S. certifiers publish broadly similar processes. Islamic Services of America lists seven steps, from inquiry to certification, which it says take “up to 90 days,” with certificates valid for one year, according to its certification page. The American Halal Foundation uses a two-stage audit, issues a three-year certificate with annual surveillance audits and asks for an ingredient list, a production flowchart and a food safety system such as HACCP, according to its audit requirements.
- Choose a certifier recognized in your target markets.
- Compile specifications and supplier certificates for every ingredient and processing aid.
- Replace high-risk ingredients, starting with L-cysteine, E471, gelatin and alcohol-based flavors.
- Review shared lines, cleaning procedures and storage to prevent contamination.
- Pass the facility audit and the certifier’s review.
- Label products only with the certifier’s approved mark, and keep supplier documents current for renewal.
Neither certifier publishes fees; they quote by product range and audit days. Our step-by-step guide on how to halal-certify your products covers the paperwork.
An example: Girl Scout Cookies
One of America’s best-known baked goods carries halal certification. IFANCA certified six varieties made by Ferrara for Little Brownie Bakers, including Thin Mints and Samoas, under a certificate issued Nov. 7, 2022, according to a certificate posted by Girl Scouts of Northern California. The case shows that halal certification can be applied to mass-market products without changing how they are sold to everyone else.
