Halal Food Market Trends

Growth Drivers

• Government-driven standardization and investment: Governments are now actively formalizing the halal food market via various regulations and direct investment. Indonesia’s mandatory Halal certification law (BPJPH) creates a compulsory market, while Saudi Arabia’s Vision 2030 explicitly targets sector growth for economic diversification. The UAE government has established dedicated Halal industrial parks and a national certification authority. For example, the UAE’s Halal Products Development Company was launched with significant capital to boost the local manufacturing, demonstrating direct fiscal support that builds infrastructure and reduces the halal food market fragmentation for international players.  Further, the companies can use these government-funded ecosystems to scale their operations efficiently across the Gulf Cooperation Council and Southeast Asian regions.
• Public investment in halal infrastructure and trade facilitation:  The significant government-led program that has increased production and global trade capacity indicates that this is the key growth driver in the halal food sector. For instance, the USDA data in September 2024 states that the UAE government actively supports its domestic halal poultry industry, which increases the chicken meat production by 17% in 2025 via feed subsidies, advanced technology, and new facility construction. At the same time, the public-private partnerships, such as Dubai’s strategic creation of the world’s largest logistics hub for foodstuffs, boost the export capabilities and global halal food market access. These infrastructural and export-focused efforts help meet rising consumer demand and position the halal food sector as a key contributor to economic growth and food security.

2023 to 2025 Chicken Meat Production, Supply and Distribution Overview in UAE

Source: USDA September 2024

• Increasing consumer awareness, globalization, and multiculturalism: Consumers today actively seek the healthy, ethical, and transparent food options that drive the demand for halal products beyond a specific community. Globalization has given way to the access of halal food in every part of the world, and multi-cultural societies, which have embraced different needs regarding diet, are also one of the main factors driving market expansion.  E-commerce is also transforming the sector, as global e-commerce sales are accounted for USD 304.2 billion in Q2 of 2025, stated to the U.S. Census Bureau estimates in August 2025. These trends are supported by cultural diversity and global trade, hence continuously boosting the halal food market presence.

Challenges

• Complex and fragmented certification standards:  The lack of a universal halal standard is the key constraint. Manufacturers face differing requirements for certifications in various countries and even within regions. This necessitates multiple and costly audits and segregated production lines. For example, a company in the halal food market must maintain distinct certified supply chains for its poultry exports in the UAE vs Malaysia. This difference surges the compliance costs and complexity, which slows down the market entry and scalability for global players trying to operate effectively across multiple majority markets.
• Cold chain infrastructure gaps: In many emerging halal food markets, inadequate cold chain infrastructure poses a major obstacle for perishable goods. This limits the distribution of high-value items such as chilled ready-to-eat meals, dairy, and other frozen products. For example, a company in Malaysia, such as Kawan Food, is a global leader in frozen halal products and has invested in its own cold chain logistics to ensure product integrity. The World Bank estimates that post-harvest food losses in emerging nations are comparatively high, indicating a critical need for such investments to unlock the full potential of the halal perishables market.