Global halal ingredients market worth $245b

Dubai: The global market for halal ingredients is estimated to be valued at $245 billion (Dh899 billion), according to a report from Thomson Reuters on Wednesday.

The report, issued in partnership with Salaam Gateway and DinarStandard, includes more than 300 halal ingredients that are manufactured globally and consumed by halal and Muslim customer segment. It features ingredients that are most effected by halal compliance processes, such as gelatin, pepsin (used commonly in cheese), and carmine (food colouring).

“There will be an upward growth trajectory in the size of the halal ingredients market — the status quo cannot continue. Muslim consumers will become more aware of what they are actually eating and eventually standards will become stringent and more widely applied,” said Haroon Latif, director of strategic insights at DinarStandard and lead analyst.

The Organisation of Islamic Countries’ (OIC) imports of halal ingredients reached $33 billion in 2015.

Mustafa Adil, head of Islamic finance at Thomson Reuters, added that sourcing halal ingredients “continues to be a key challenge for many food, cosmetics and pharmaceuticals companies that seek to address Muslim demand”.

The report also outlines opportunities for prospective players in the halal ingredients market, including companies, private equity investors, and e-commerce platforms.