Why Top Companies Are Racing to Get Halal Certification for Global Growth

In today’s rapidly globalizing world, top companies across industries are increasingly seeking halal certification to tap into one of the fastest-growing consumer markets. The global halal economy, valued at USD 2.7 trillion in 2024, is projected to reach USD 5.9 trillion by 2033, driven by a rising Muslim population and growing demand for ethical, high-quality products. From food giants like Nestlé to cosmetics brands like L’Oréal, businesses are racing to secure halal certification to expand their reach, build consumer trust, and capitalize on emerging market opportunities. This strategic move is not just about meeting religious requirements but also about aligning with global trends in sustainability, transparency, and ethical consumption. As of July 2025, the push for halal certification is reshaping industries, with companies leveraging it as a key driver for global growth.

The Booming Halal Economy: A Lucrative Opportunity

The halal economy encompasses a wide range of sectors, including food, beverages, cosmetics, pharmaceuticals, fashion, and tourism. With over 1.9 billion Muslims worldwide—nearly 25% of the global population—the demand for halal-certified products is skyrocketing. According to a recent report, the global halal food market alone is expected to grow at a compound annual growth rate (CAGR) of 8.92% from 2025 to 2033, reaching USD 5.2 trillion by the end of the forecast period. This growth is fueled by the increasing Muslim population, projected to reach 2.2 billion by 2030, and the rising purchasing power of young, tech-savvy Muslim consumers.

Beyond Muslim consumers, halal certification is gaining traction among non-Muslims who associate it with quality, hygiene, and ethical production. For instance, halal food is perceived as safer and healthier due to its strict standards, which include humane animal treatment and the exclusion of harmful additives like alcohol or pork derivatives. This universal appeal has prompted major companies to integrate halal compliance into their strategies, positioning themselves to capture diverse markets in regions like Southeast Asia, the Middle East, and even Western countries with growing Muslim populations.

Why Companies Are Prioritizing Halal Certification

The race for halal certification is driven by several strategic and economic factors. For many companies, it’s a gateway to accessing Muslim-majority markets where halal compliance is mandatory for imports. Countries like Malaysia, Indonesia, Saudi Arabia, and the UAE require halal certification for food, cosmetics, and pharmaceuticals, making it a prerequisite for market entry. For example, the UAE holds a 36% share of the global halal food market, followed by Saudi Arabia at 21%, highlighting the immense potential in these regions.

Moreover, halal certification enhances brand credibility and consumer trust. The rigorous certification process, which involves ingredient reviews, facility audits, and supply chain transparency, assures consumers of product integrity. Companies like Nestlé, which has certified products like noodles, beverages, and chocolates, have seen significant market penetration in Muslim-majority countries due to their commitment to halal standards. Similarly, brands like Cargill and QL Foods have expanded their global reach by adhering to strict halal protocols, ensuring compliance with international standards set by bodies like JAKIM in Malaysia and the American Halal Foundation (AHF).

Key reasons top companies are pursuing halal certification include:

• Access to High-Growth Markets: Halal certification unlocks entry into Muslim-majority countries and regions with significant Muslim populations, such as Southeast Asia and the GCC.

• Enhanced Consumer Trust: Certification signals quality, safety, and ethical production, appealing to both Muslim and non-Muslim consumers.

• Competitive Advantage: Certified brands stand out in crowded markets, attracting retailers and e-commerce platforms prioritizing halal products.

• Alignment with Ethical Trends: Halal standards align with global demands for transparency, sustainability, and humane practices.

• Diversified Revenue Streams: Catering to the halal market allows companies to tap into new consumer segments and boost profitability.

• Support for Global Trade: Certification facilitates exports by meeting the regulatory requirements of Muslim-majority nations.

Industry Leaders Leading the Charge

Major corporations are not just adapting to the halal market; they’re actively shaping it. Nestlé, one of the world’s largest food companies, has invested heavily in halal certification for its diverse product portfolio, from dairy to confectionery. In Malaysia, Nestlé opened a plant-based manufacturing facility in 2021 to produce halal-certified vegan products under its Harvest Gourmet brand, catering to the growing demand for plant-based halal foods. Similarly, Al Islami Foods in the UAE launched a preservative-free plant-based beef burger in 2021, capitalizing on the trend toward healthier, ethical alternatives.

In the cosmetics sector, companies like L’Oréal and Unilever are securing halal certification to appeal to Muslim consumers who prioritize ethical and alcohol-free products. The global halal cosmetics market, valued at USD 61 billion in 2017, is projected to reach USD 90 billion by 2023, driven by demand for cruelty-free and organic products. Brands like Iba, India’s first halal-certified cosmetics line, have gained traction by offering safe, ethical alternatives that resonate with modern consumers.

The pharmaceutical industry is also embracing halal certification, particularly for products containing animal-derived ingredients like gelatin. Companies ensure compliance by using halal-certified gelatin or plant-based alternatives, addressing the needs of Muslim consumers while aligning with global health trends. This strategic focus on halal compliance is evident in the efforts of companies like Prima Agri-Products, which produces premium halal frozen meat and non-meat products for global markets.

Challenges in the Halal Certification Race

Despite the opportunities, obtaining halal certification comes with challenges. The process is rigorous, involving detailed audits of ingredients, manufacturing processes, and supply chains to ensure compliance with Islamic dietary laws. For smaller companies, the costs of certification and compliance can be a barrier, increasing product prices by 5–10%. Additionally, varying standards across countries and certifying bodies can complicate the process. For instance, Malaysia’s JAKIM and Indonesia’s BPJPH have different requirements, necessitating tailored approaches for each market.

Another challenge is the risk of food fraud, where products are falsely labeled as halal, undermining consumer trust. To combat this, certification bodies like IFANCA and the American Halal Foundation emphasize transparency and traceability, using technologies like blockchain to ensure supply chain integrity. Educating consumers and businesses about halal standards is also critical to maintaining market confidence.

The Role of Technology and Innovation

Technology is playing a pivotal role in the halal industry’s growth. Digital platforms like DagangHalal and HalalTrip are making it easier for consumers to access certified products and services, from food to travel. Food-tech startups are leveraging AI and automation to streamline production and ensure compliance, while e-commerce platforms are expanding the reach of halal-certified goods. For example, grocery e-commerce has fueled the rise of halal cloud kitchens and ghost kitchens, catering to the growing demand for convenient, certified meals.

Blockchain technology is also enhancing transparency in the halal supply chain, allowing companies to trace ingredients from source to shelf. This aligns with consumer demands for ethical and sustainable practices, further boosting the appeal of halal-certified products. Major players like Cargill are investing in advanced technologies to improve efficiency and reliability, ensuring their products meet global halal standards.

Global and Regional Dynamics

The halal economy’s growth is particularly pronounced in regions like Asia Pacific, which holds a 48.5% share of the global halal food market. Countries like Malaysia, Indonesia, and Saudi Arabia are leading the charge, with robust certification frameworks and government support. For instance, Indonesia’s transformation of KNEKS into the Islamic Economy Agency (BES) in July 2025 aims to position the country as a global halal hub by 2028. Malaysia’s JAKIM, meanwhile, is a globally recognized authority, certifying products for export to over 180 countries.

Non-Muslim-majority countries are also capitalizing on the trend. Brazil, a major exporter of halal meat, has strengthened trade ties with Muslim-majority nations, while countries like Singapore and South Korea are forming partnerships to boost halal imports and exports. In the UK, retailers like M&S Food have launched halal ready meals, reflecting the growing demand among diverse consumer bases.

The Future of Halal Certification

As the halal economy continues to grow, companies are recognizing that certification is not just a compliance requirement but a strategic asset. The rise of halal tourism, projected to reach USD 300 billion by 2026, and the expansion of halal cosmetics and pharmaceuticals highlight the market’s diversity. Forward-thinking brands are integrating halal compliance into their core operations, from product development to marketing, to build trust and loyalty among consumers.

Governments are also playing a role by implementing stricter regulations and standardized frameworks. The Organization of Islamic Cooperation (OIC) is working to harmonize halal standards globally, simplifying trade and enhancing consumer confidence. In the US, the halal food market is expected to reach USD 1.5 trillion by 2033, driven by increasing diversity and demand for ethical products.

 A Strategic Imperative for Global Growth

The race for halal certification is a testament to the global economy’s evolving dynamics. Top companies are not only meeting the needs of a growing Muslim consumer base but also appealing to a broader audience seeking ethical, high-quality products. By securing halal certification, brands can access high-growth markets, enhance their reputation, and align with global trends in sustainability and transparency. As the halal economy continues to expand, companies that invest in certification today will be well-positioned to lead in the markets of tomorrow, driving innovation and growth on a global scale.