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The US Halal Food Market market is projected to reach a value of USD 43.27 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 market growth, as there is a growing demand for halal-certified and Sharia-compliant food products among Muslim consumers.
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. 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.
The Market shows an accelerated CAGR during the forecast period.
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The report extensively covers market segmentation by distribution channel (offline and online), application (halal MP and S, halal cereals and grains, halal FV and N, halal beverages, and others), and end-user (retail and foodservice). Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.
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.
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 are another important distribution channel for the products, including wet markets, open markets, and butcher shops. These shops are present in areas where there is a high demand for fresh meat and have a higher density of the Muslim population. Traditional retailers, especially wet markets, sell only fresh meat. This is unlike dry markets, where other consumer goods are also sold. Wet markets and butcher shops are specialized in slaughtering animals according to Islamic laws. Many supermarkets and other retailers procure these meats from these traditional markets for further processing. Thus, the above-mentioned advantages are expected to increase the demand in the traditional retailers segment, which will fuel the growth of the market in the US during the forecast period.
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.
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.
In addition, the manufacturers are focused on developing packaged frozen, ready-to-eat cooked, and uncooked meals that provide taste and quality while maintaining the highest level of food safety. These ready-to-eat meals are provided to institutes, healthcare, senior homes, big chain stores, and many independent retailers which have a positive impact on the market growth. Thus, it has the potential to drive the growth of the market in the US during the forecast period.
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.
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.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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.
Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2028 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.42% |
Market growth 2024-2028 |
USD 13.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.21 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Safa Foods Canada Ltd., American Foods Group LLC, Barry Callebaut AG, 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., and The American Halal Co. Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Application
8 Market Segmentation by End-user
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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