What Is the State of the Global Halal Industry in 2023?

In 2023, the global halal industry continues its trajectory of robust growth, adapting to new consumer trends and technological advancements. This article delves into the latest developments, offering a comprehensive analysis backed by recent data.

Overview of the Global Halal Market in 2023

Growth and Diversification

The global halal market, particularly in the food and beverage sector, is on an upward trend. The halal food market is expected to grow by $427.68 billion during 2023-2027, reflecting a compound annual growth rate (CAGR) of 4.52%​

​. This growth is not limited to Muslim-majority countries but is also evident in non-Muslim regions, driven by increasing awareness and demand for quality, ethical products.

Key Developments in Halal Sectors

Halal Food and Beverages

The halal food and beverages market is projected to reach a valuation of USD 2.570 million by 2028, growing at a CAGR of 5.8% from 2023​

​The demand for natural and organic halal-certified meat is particularly notable, driven by consumer preferences for ethically produced animal products​

Halal Pharmaceuticals and Cosmetics

The global halal cosmetics market is witnessing substantial expansion, with a projection to surpass US$ 145.8 billion by 2031, growing at a CAGR of 15.5%​.

​This growth is attributed to increasing consumer awareness and a rising trend towards ethical and sustainable beauty products.

Halal Tourism

Muslim-friendly tourism is emerging as a lucrative sector, with global spending from Muslim travelers expected to reach $300 billion by 2026​

​. Countries across Asia and the Middle East are increasingly catering to this market by offering halal-friendly amenities.

Technological Advancements

Blockchain technology is increasingly being seen as a solution for ensuring traceability and sustainability in the halal food chain, enhancing transparency and consumer confidence in halal products​

Challenges and Solutions

Standardization of halal certification remains a challenge. Efforts like Malaysia’s robust halal ecosystem, which extends beyond food and beverages to sectors like cosmetics, pharmaceuticals, and banking, are significant steps towards addressing these challenges​

Opportunities and Future Trends

The global halal industry is poised for further expansion, with trends like the rise of plant-based halal products and the increasing influence of Gen Z consumers. The introduction of blockchain technology and the growth of the organized retail sector are key drivers for future growth.

In 2023, the global halal industry demonstrates significant growth and diversification, with technological innovations and expanding market segments. It remains a dynamic and essential part of the global economy, offering vast opportunities for businesses and consumers alike.