Present Scenario: The Growing MarketThe global halal food market reached a value of US $1,978 billion in 2021. The market is expected to reach US $3,907.7 billion by 2027, exhibiting a CAGR of 11.24% during 2022–2027.
Global product launches with halal claims jumped by 19% from 2018 to 2020, from 16,936 products to 20,482. Sixty-three percent of these came from Asia, followed by Africa and the Middle East, both of which were in the low double digits (14% and 10%, respectively).
Big players in the food industry are beginning to take notice of the booming halal food sector. In 2019, Japanese seasoning company Ajinomoto invested US $85 million to build a halal production line in Malaysia. The same year, the local branch of Japanese company Sanichi Technology financed a US $300 million halal gelatin plant and industrial park in Malaysia, which will serve as the first of its kind in the region.
Developments in the halal food industry mark the beginning of a potentially huge market, fuelled by a large, fast-growing, and young population across Asia, the Middle East, and Africa (APMEA) who are looking for products and services aligned with a simple way of life.
To meet market needs and further strengthen consumer trust in halal products, countries are adjusting their economic strategies. For example, Indonesia, which has the largest Muslim population in the world at 207 million people, introduced the halal product law in 2019. Under this law, all consumer products and related services that enter and are traded in the country must be halal-certified. Similarly, in Saudi Arabia, the kingdom extended its mandatory halal certification in 2019 to also cover imported chilled and frozen foods, confectionery, long-life products, milk and other dairy products, and oils and fats.
The Arabic term “halal” means “permissible” in English. Despite not being Muslim, many individuals choose to consume halal cuisine. Many customers feel that halal cuisine provides several extra health benefits in addition to ethical ones. Learn how halal food may benefit your nutrition and well-being.
Even countries outside of the Organization of Islamic Cooperation (OIC) are picking up on the trend, with Singapore, the Philippines, and South Korea setting up agreements with OIC countries to explore various partnerships on the import and export of halal products and related services. In the UK, M & S Food launched its own range of halal ready-meals.
Halal food refers to foods and beverages that have been certified as being halal. Halal cuisine has grown in popularity among both Muslim and non-Muslim consumers in recent years as it has moved from a religious identity mark to a guarantee of food safety, sanitation, and trustworthiness.
As multi-cultural customers become more aware of halal meals, demand for authentic halal foods surges. Demand for organic foods also surges. Besides meat, several other issues have been pragmatic. For example, food ingredients like flavours, oils, enzymes in cheese, and a variety of other derivatives, plus new technologies used in food processing, have further complicated the criteria of the term “halal”.
So what should be done?The phrase “halal” labelling shows that the product is pure and genuine for eating, as it teaches about the unacceptable derivatives that may be embedded in all sorts of products and must be detected and avoided if they are regarded to be beyond the boundaries of halal. Establishing and implementing halal practises in the production of both consumable and non-consumable items has become essential for both customers and producers.
Halal foie gras, spring rolls, chicken nuggets, ravioli, lasagna, pizza, and baby food are among the processed meals and products available from a number of food manufacturers. Halal ready meals are a developing consumer market in the United Kingdom and the United States, with a rising number of stores offering them. Many manufacturers have broadened their product portfolio by introducing several value-added food items, such as hot dogs, soups, candies, burgers, sandwiches, cookies, creams, and pizzas, in response to an increase in demand for mandatory halal labelling and certification rules, owing to which consumers nowadays prefer halal food.
Moreover, the flourishing e-commerce industry has provided consumers with easy access to halal-certified food products.What are the benefits of halal standards?Many customers are concerned about animal welfare, the purity and nutritional value of processed food ingredients, and food safety. Because halal is associated with purity and health, certification can boost customer confidence in these items and raise their desirability. Halal food improves metabolism and general wellbeing.
Taking the best possible care of one’s own body is a fundamental human obligation. One of the most essential ways to accomplish this is to ensure that the food they consume is of the highest quality possible. We are all aware that consuming nutritious foods is essential for maintaining a healthy weight, immune system, brain, and metabolic function. Halal meals are defined as those that have been designed, manufactured, processed, packed, and stored using machinery, equipment, and/or utensils that have been cleansed and untouched by human hands. The items should be devoid of any impurities or mixes that are not in compliance with purity.
Halal ready-to-cook and ready-to-eat meals likewise experienced a boom amidst the pandemic; and today, there is still room for growth when it comes to offering new products and variety within each category. Currently, the majority of new product launches with halal claims come from sweets, biscuits, and cookies, followed by spices and seasonings and poultry.
What exactly is a halal assurance system?The HALAL Assurance System is a methodical way of identifying non-halal contamination and implementing control measures to assure the halal and safety status of products and services.
Halal food in IndiaAlthough halal Indian food can be found all over the country, the most halal establishments are likely to be found in the states of Kashmir, Lakshadweep and Jammu. In many major cities, even American fast-food giants like McDonald’s, KFC, Domino’s, and Pizza Hut have set up shop with halal stamps.
India has no official body certifying halal products, meat or otherwise. Independent organisations such as Halal India and the Halal Council of India help exporters with the right to label their products suitably for countries with large Muslim populations like the UAE and Kuwait. This also helps restaurants cater halal food for their patrons.
Also, several leading companies in India, including Gautam Adani’s Adani Wilmar, Mukesh Ambani’s Reliance Industries, Baba Ramdev’s Patanjali, etc., have sought halal certification for their exports.
Permissible halal foods, ingredients, and derivativesPlants and other speciesGenerally, all plants and other species such as mushrooms, algae, bacteria, etc. are considered halal except those that are poisonous, intoxicating, or hazardous to human health.
Fruits, juices, and vegetablesFruits, vegetables, and natural juices are all considered halal when they are pure. Processed fruits and vegetables may not be accepted if they are processed in factories using non-halal oils, fats, preservatives, flavourings, etc. The use of processing oils and other added ingredients must be evaluated for halal status.
Halal-approved flavourFor flavours to be halal, no solvent or any ingredient of animal origin or processing aid that is not on the halal list can be used for the manufacturing of the ingredient. A general assumption is that any flavour that has ethanol as a solvent or as a constituent produced during fermentation is non-halal.
Dairy Products: MilkMilk derived from domesticated cattle and ruminant species is acceptable.
Yogurt: Yogurt and yoghurt products should not contain gelatin.
Many kinds of cheese contain rennet and other enzymes that are derived from animals. It is essential to ensure that these enzymes are derived from halal origins.
Bread, cakes, and pastriesBakery goods do pose halal concerns. Breading on products like fried chicken or cheese sticks or the use of breading in the stuffing of fillers may contain questionable ingredients like cysteine, fats, oils, colours, flavours, preservatives, and alcohol-based ingredients. It is important to make sure that no alcohol or un-halal animal-based ingredients are used in pieces of bread, breading, cakes, or pastries.
Fats and oilsFats and oils must be derived from halal sources like vanaspati or aplant sources.
Other Ingredients or DerivativesIt is important to check all ingredients added to halal consumables and non-consumables during processing before use to make sure that such ingredients are halal certified by a certifying organization.
The following is a list of some ingredients or derivatives:
Anti-Caking: All anti-caking agents are acceptable except for Edible Bone Phosphate, animal stearic acid, and animal magnesium stearate unless derived from halal animals. All vegetable oil or silica-based preparations are halal.
Antioxidants: All acceptable, except Tocopherols unless derived from vegetable oil.
Artificial Sweetening Agents: All Halal.
Colours: All halal, providing that animal emulsifier is not used as a carrier or ethanol is used as a solvent.
Emulsifiers: Plant-derived emulsifiers and those derived from halal animals are acceptable.
Enzymes: All plant and microbial enzymes are acceptable. Also, enzymes from permissible animals are acceptable.
Flavour Enhancers: Must not have animal enzymes used as catalysts.
Flour Treatment Agents: Sodium Steroyl Lactylate, Calcium Steroyl Lactylate, and L-Cysteine Hydrochloride must be derived from a halal source.
Food Acids: Lactic acid must be derived from a halal source.
Fusel Oil: This is a mixture of several alcohols, chiefly amyl alcohol, produced as a by-product of alcohol fermentation. Fusel oil is not acceptable for use as a flavouring for halal goods.Gelatin: Gelatin is a water-soluble protein prepared from collagen or plant-based gelatin. All fish gelatin is considered halal.Glands from cats or beavers: Ingredients from these glands, which are used in some strawberry and chocolate flavourings, cannot be used in halal flavourings.
Glycerin /Glycerol: Must be derived from plant sources.
Humectants: Glycerin and hydrogenated glucose syrups must be derived from a plant source.
Mineral Salts: All salts are halal.
Preservatives: All preservatives are considered halal except those that might be dangerous to human health.
Propellants: All halal.
Thickeners: Enzyme-treated starches must be halal-sourced.
Transgenic: Plants that have other plant genes transplanted into them are halal. Plants with animals’ genes introduced to them may be acceptable only if the animal species is acceptable. The introduction of genes from non-acceptable species to acceptable species is not permitted.
Vegetable Gums: All gums from plant sources are halal.
Vinegar: Vinegar is considered halal.
Opinions on GMO foods are mixed, although there is no widely accepted prohibition on consuming them. Some clerics and scholars have expressed support, arguing that such food production methods are halal because they contribute to human well-being. Voices in opposition to GMOs argue that there is no need for genetic modification of food crops because God created everything perfectly and man does not have any right to manipulate anything that God has created.
CertificationHalal food certification has been criticized by anti-halal lobby groups and individuals on social media, who claim that certifying foods as halal leads to consumers subsidising a particular religious belief.
According to the Dubai Chamber of Commerce and Industry, the global industry value of halal food consumer purchases was $1.1 trillion in 2013, accounting for 16.6 percent of the global food and beverage market and growing at a 6.9 percent annual rate.Growth regions include Indonesia ($197 million market value in 2012) and Turkey ($100 million). The European Union market for halal food is estimated to be worth $30 billion, with France accounting for approximately $8 billion of that total.
InsightThe halal food and beverage industry has also had a significant impact on supermarkets and other food businesses such as restaurants. French supermarkets had halal food sales totalling $210 million in 2011, a 10.5% growth from 5 years prior. In France, the market for halal foods is even larger than the market for other types of common foods. For example, in 2010, the market for halal foods and beverages in France was nearly twice that of organic foods. Auchan, a large French supermarket chain, now sells 80 certified halal meat products, along with 30 pre-cooked halal meals and 40 frozen halal products.
Upscale restaurants and catering services have also added halal foods to their menus. In addition, many beverage companies, such as Evian, have made the effort to add a halal stamp on their products to show that their water and other beverages are pure and not haram, or forbidden under Islamic law.
The rise of the ethical consumer has attracted even non-Muslim consumers to halal brands and products, as factors such as diseases and food security concerns drive demand for healthier options.
Because of the stringent regulations for attaining halal certification, halal cuisine has evolved from being a religious dietary choice to an assurance of safe, healthy, hygienic, and reliable food. Various research studies show that non-Muslims have a positive perception of halal food products and have strong intentions to purchase them because they know halal food is properly processed.
The move to adopt uniform halal standards across OIC countries will give them the opportunity to raise the standard of halal food and further strengthen the perception and market share of halal products in the global food trade. Despite a turbulent year, the halal food sector was the least affected by COVID-19, with just an estimated 0.2% dip from 2019 to 2020. Of the US $11.8 billion in government-led investments in 2019/2020, 51.86% of that went into halal food, signalling that the industry remains robust and thriving.