Halal Packaging Market Trends

Growth Drivers

• Boost in government halal initiatives- There is widespread adoption of certifications and regulatory frameworks that are government-approved for halal packaging. To gain the trust of consumers these approval and certifications indicate that goods and packaging follow stringent halal guidelines. The global halal packaging market revenue share is experiencing substantial growth due to the implementation of policies by governments and regulatory bodies to support this industry and standardize certification procedures.For instance, a report by the International Trade Administration 2021 projected that in Indonesia, since 2019 several products had to go through a certification process. They are mandated to be labeled with whether they are "haram," which means they contain pork or alcohol, or "halal," which means they comply with Islamic law. This will impact the food packaging growth during the forecast period.
• Growth in international trade of halal foods- The demand for dependable and secure packaging solutions is rising credited to the expansion of e-commerce and international trade in halal products. Packaging needs to fulfill a variety of requirements as customer purchasing patterns move toward online channels. Additionally, maintaining product integrity while being transported over long distances, obeying adherence to global regulations, and providing tamper-evident features to fuel confidence in customers to make online purchases. For instance, according to the International Trade Association 2024, e-commerce revenue is propelled to surpass USD 5.5 trillion by 2027 and is predicted to gain a growth rate of 14.4%.
• Advances in halal bioactive packaging materials- Non-toxic and sustainable packaging, with superior bioactive materials has emerged as a promising solution in the food handling and processing industry. Bioactive ingredients such as anthocyanin, carotenoid, betalain, and chlorophyll, are used as packaging additive with nanoencapsulation and microencapsulation. It allows targeted and controlled release to mitigate pathogenic spoilage and oxidative degradation of food products. Furthermore, bioplastics derived from bamboo fibers, cellulose-based materials, starch, and chitosan sources from shrimp and crab shells are a few examples of halal biomaterials. These are biodegradable, renewable, and compostable, making them environmentally responsible solution for halal packaging market.  NLYTech Biotech, Pulau Pinang, and ADA Biotech based are among the key players specializing in the manufacturing of halal-certified biomaterials for packaging applications.  
• Multiculturalism and globalization to fuel the market- The effect of multiculturalism and globalization have increased the availability and accessibility of halal food items. As they embrace diversity, many countries are adapting their food market demand to suit a variety of dietary options. For instance, according to Our World Data 2024, over 50% of the world's total output is made up of the combined value of imports and exports from all countries. Conventional supermarkets, restaurants, and food manufacturers are now providing a wider range of halal products to cater to more diverse consumers.
  
  Additionally, Halal cosmetics are becoming more and more popular among customers from different religions, backgrounds, and ethnicities as a result of growing globalization and cross-cultural interchange. Cosmetic companies are investing in halal-certified goods and packaging to satisfy a wide range of customer preferences because they see an opportunity in the valuable halal packaging market expansion.

Challenges

• Expensive and complicated certification requirements- Companies may incur extra costs to implement halal packaging practices, such as obtaining certification, using particular materials, and modifying production procedures. Some companies may be unwilling to pay these extra costs. Moreover, there may be misunderstandings in the sectors due to the existence of several halal certification standards and divergent interpretations of halal requirements. It is anticipated that this will adversely impact the halal packaging market during the projected period.
• Shortage of skilled workers- The industry's progress is restricted by the requirement for specialized knowledge, which may not be readily accessible, to design packaging that meets both halal practical and standards. Halal packaging regulations run the risk of being misinterpreted or miscommunicated, which could lead to unintentional noncompliance and possible reputational damage.