US - Halal Food Market by Distribution Channel, Application and End-user - Forecast and Analysis 2024-2028

US Halal Food Market Size 2024-2028

The US Halal Food Market market is projected to reach a value of USD 13.02 billion and is estimated to grow at a CAGR of 7.42% between 2023 and 2028. The symbol of healthy food is becoming increasingly important as consumers are more conscious about their health and dietary choices. This has led to an increased demand for products that are perceived as healthy, such as whole grains, gluten-free options, and multigrain products. Additionally, increasing sales through retail channels, driven by factors such as convenience and accessibility, are boosting market growth by expanding the reach of healthy food products to a wider audience. The rising Muslim population in the country is also contributing to the growth of the halal food market, as there is a growing demand for halal-certified and Sharia-compliant food products among Muslim consumers.

Market Overview

The Market shows an accelerated CAGR during the forecast period.

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Market Segmentation

By Application

Halal meat is considered healthier meat than other meat (except kosher meat). This is because the blood of the animals is drained out of their body because animal blood might contain bacteria and toxins that can spread across the animal body (carcass) once it dies. The new product line retains all the nutrition in chicken patties, popcorn chicken, and chicken strips products. Chilled and frozen meat products are to be preserved throughout the cold chain systems to maintain the actual characteristics of meat. Proper measures are taken to maintain the temperature of the chilled and frozen meat products. The shelf life of chilled and frozen products is longer than others. Although the segment accounts for a small percentage of the regional meat, poultry, and seafood segment, it is expected to grow fast due to the growing preference for convenience food products by consumers during the forecast period.

By Distribution Channel

The market share growth by the offline segment will be significant during the forecast period. Supermarkets and hypermarkets are one of the most important distribution channels for the market. The growth of organized retail in the country has led to growth in sales through this channel. Usually, supermarkets purchase products from traditional markets such as wet markets and slaughterhouses. 

The offline segment was the largest and was valued at USD 19.59 billion in 2018 

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Traditional retailers, including wet markets, open markets, and butcher shops, serve as significant distribution channels for the sale of fresh meat, particularly in areas with high demand and a dense Muslim population in the US. These retailers specialize in selling only fresh meat, distinguishing them from dry markets that offer a variety of consumer goods. Wet markets and butcher shops adhere to Islamic laws during the slaughtering process, making them a trusted source for halal meat. The advantages of traditional retailers, such as the freshness and authenticity of the meat, are expected to boost demand in this segment and contribute to the growth of the halal food market in the US during the forecast period.

Similarly, the Europe halal food market is witnessing significant growth due to the increasing demand for halal products among the Muslim population and the growing awareness of the health benefits associated with halal meat. Traditional retailers play a crucial role in catering to this demand in Europe, as they offer fresh, authentic, and halal meat, making them an essential distribution channel for the halal food market in the region.

Market Dynamics 

The market is driven by the growing Muslim population and increasing awareness about food safety, hygiene, and reliability. According to the Pew Research Centre, the Muslim consumer base is expanding, leading to a rise in demand for halal-certified products, particularly in the meat and vegan food & beverage sectors. Companies like AI Islami Foods are catering to this demand by offering halal meat and other halal food products. Technological advancements, including the use of blockchain for tracking and tracing, are enhancing the market's efficiency and transparency. However, the market faces challenges such as stringent laws and regulations, as well as the need for R&D proficiencies and raw materials.

Key Market Driver

Increasing sales through retail channels is notably driving market growth. In the US, sales and distribution of products are primarily conducted through modern retail channels such as supermarkets, hypermarkets, and convenience stores, unlike the global dominance of wet and traditional markets. Responding to the increasing demand for halal cuisine, many merchants are now offering halal-labeled food products. This growth has been further propelled by technological advancements, efficient supply chain management, streamlined certification processes, and the adoption of tracking and tracing systems.

Moreover, companies like Sinisana Technologies have played a significant role in this sector, contributing to market growth through innovative product launches. Additionally, players such as Al-Futtaim have also contributed to the market's expansion with their strategic initiatives and offerings. Additionally, restaurants offering these foods have expanded their reach by being accessible on popular delivery apps like DoorDash, Uber Eats, and Grubhub. These factors are expected to drive market growth in the US during the forecast period.

Major Market Trends

Increasing demand for convenience food is an emerging trend influencing the market growth. Growing urbanization, hectic lifestyle, and large disposable income are some of the factors for the growing demand for convenience foods in the US. Added to this, improving lifestyle and rising disposable income of the Muslim population have also fueled the demand for convenience foods. These packed foods are made according to laws and regulations. The segment is growing steadily due to the short preparation time and ease of consumption. 

The US beef market is witnessing robust growth, fueled by the escalating demand for packaged frozen, ready-to-eat cooked and uncooked meals. The ready-to-eat meals market is projected to expand further during the forecast period, owing to the convenience and safety benefits they offer. Halal food, a segment of the prepared foods market, is gaining significant traction in the US. Halal certification ensures that the meat used in these products adheres to Islamic dietary laws. The use of US beef in halal ready-to-eat meals adds to their appeal, as consumers seek out high-quality, nutritious food options that align with their religious beliefs. Thus, the US beef market and the halal food sector are interconnected, with the former providing the raw material for the latter, and both poised to grow alongside each other, offering lucrative opportunities for manufacturers and retailers.

Significant Market Challenge 

The lack of uniform standards is a significant challenge hindering the market growth. The products have to be certified by the authorized and regulatory bodies. However, the lack of a uniform certification authority has led to varying standards being developed. The market is negatively impacted by several factors, such as the multiplicity standards, and disagreements between the certification bodies and accreditation bodies. This has led to an increase in halal food crime, owing to the weakness of the authorities in ensuring the integrity of the certification.

However, the involvement with politics and religion has caused some chaos among Muslim consumers. The integrity of regulatory bodies is essential to make standards more comprehensive and efficient in the country. Thus, the lack of uniform standards in regulating bodies is expected to restrain the growth of the market in the US during the forecast period.

Market Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Al Safa Foods Canada Ltd. - The company offers halal food products such as deli, ethnic, ready to cook, and ready to eat product lines beef, chicken, and Turkey.
• Key Offering- American Foods Group LLC - The company offers halal food products ranging from fresh and frozen boxed beef to variety meats, portion cut steaks, ground beef tubes, and patties.
• Key Offering- Barry Callebaut AG - The company offers halal food such as Shiny granella milk M, roughly broken pieces of milk chocolate with a high gloss.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Coleman Natural Foods LLC
• Crescent Foods
• Grecian Delight Kronos Foods
• Harim Holdings Co. Ltd.
• Harris Ranch Beef Co.
• Midamar Corp.
• Nema Food Inc.
• Salwa Foods
• SUKHIS GOURMET INDIAN FOOD
• Tallgrass Beef
• Texas Halal Corp.
• The American Halal Co. Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments

• Distribution Channel Outlook 
  • Offline
  • Online

• Application Outlook 
  • Halal MP and S
  • Halal cereals and grains
  • Halal FV and N
  • Halal beverages
  • Others

Market Analyst Overview

The market is influenced by factors such as National Library of Medicine research, Multidisciplinary Digital Publishing Institute (MDPI) insights, and the hypermarket & supermarket distribution channel. With the increasing demand for halal-certified products, the market sees a rise in online distribution and Halal laboratories for testing. Challenges like regulatory frameworks and economic slowdown exist, impacting pricing and availability. However, there's a positive outlook due to consumer awareness and the global Muslim population. The market caters not only to Muslims but also non-Muslim consumers, offering high-quality, ethically sourced halal products across various categories, including processed foods, cosmetics, and pharmaceuticals, through specialized halal markets and online retailers.

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What are the Key Data Covered in the Market  Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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