Europe’s halal food and beverage market has an estimated worth of $15.5bn and is growing at a CAGR of 5.61%, with a projected reach of over $20bn in five years, Mordor Intelligence data suggests.
Due to the predicted growth of Europe’s Muslim population, and as a result of the demographic’s strict food and beverage preparation demands, manufacturers are evaluating and updating value chains to better meet the needs of the consumer base.
“The European region has witnessed the fastest-growing and most significant market for halal food and beverage products owing to the increasing Muslim population,” said Mordor Intelligence. “Furthermore, to a lesser extent, the rise of Muslim tourism in European countries has further supplemented demand for halal food and beverages."
The demographic of Europe’s Muslim population is very clear, explains Halal Food Authority certificate & quality manager Hifza Ibrahim. “It’s likely to increase and you have to feed that population, so halal-certified products – not just food and drink – are going to be in growth,” she tells FoodNavigator.
Previously, for products like ready meals, Muslim consumers would often have to choose the vegan option. However, “Muslim consumers eat a lot of meat, so you can now see more [meat-containing] chilled and frozen ready meals that are halal-certified,” explains Ibrahim.
European brands producing halal-approved food
Some within the demographic are also comfortable consuming alcohol-free mocktails and mixed drinks, she continues, although is careful to point out her organisation does not certify such products.
“But there is a growing [Muslim] consumer awareness around these and more opportunities [in the market],” she continues. “The demand is there for halal food and drink, but it’s not just limited to Muslims, especially outside Europe where [halal certification] is seen as a symbol of quality.”
Within Europe, France has the largest market share of Muslim consumers, according to Central Intelligence Agency (CIA) data for 2022. It has grown from a country with a handful of small, independent slaughterhouses producing to Islamic law, to an industry that is threaded into everyday consumer life as it offers a wide array of halal food, drink and other products.
“For instance, Casino France is one of the largest supermarket chains offering halal product lines under the brand name Wassila,” said Mordor Intelligence. “Additionally, Isla Delice, Oriental Viandes, Reghalal, Isla Mondial, Medina and Saada are some of the leading halal brands which have been established locally.”
Well known brands also produce products to halal certification standards, including Ferrero and Nestlé SA.
While France is the largest market in Europe for halal food and beverage sales, UK is the fastest-growing according to Triton Market Research (TMR), predicting it will outgrow all other European markets and match France by 2027.
“The growth of the Muslim population in the country has been increasing rapidly,” said TMR. "The halal food and beverage market holds a major share in the UK’s food and beverage sector. Companies are making significant investments, for instance, For Aisha, a halal baby food manufacturing company, is being funded through the UK’s Enterprise Guarantee Scheme.”
But this pales in comparison to the Middle East and African markets, where halal sales are predicted to rocket by an annual 7.98% from $2.5tr this year to 3.70tr in 2029, Mordor Intelligence data predicts.
Halal-approved revenue winners
“In Europe, Halal food and drink sales are picking up,” explains Ibrahim. “In countries outside of Europe, it’s the other non-food and drink sectors that are growing more, because in places like the Middle East sales have reached saturation point, so companies are looking at things like medical devices and skincare,” she says. “Europe will eventually go in that direction, but for now food and drink in Europe has a lot of opportunity to grow.”
The biggest halal markets
Largest international markets for halal food and beverage, according to the State of Global Islamic Economy 2023/24 Report (by value):
- Indonesia
- Egypt
- Bangladesh
The opportunities within the international halal market are vast and growing.
Food and drink companies seeking to introduce new products to the demographic or even add halal certification to widely available products could be on to a revenue winner. Ibrahim points out plant-based is growing in popularity for European Muslim consumers. “You need to keep up with demand when it comes to the halal standard,” she explains. “It’s not just something you can say a black and white yes or no to. The religious authorities will issue rulings on how to certify certain products.”
Several halal certification bodies exist across Europe, each marking against a similar set of criteria. Depending on the food or drink category, certain needs must be met and can differ from one-another, such as with meat, which requires a specific set of rules to be followed.
The topic of halal meat can be sensitive and is one the sector continues to educate on as well as invest in scientific research to ensure production methods meet high welfare, as well as hygiene and religious standards.
But Ibrahim also points out much of the halal meat produced in Europe is not for the domestic market but for export to the Middle East and other regions.
Opportunity beyond Europe is apparent too, according to the State of the Global Islamic Economy 2023/24 Report, which showed Muslim consumer spend on food and beverages rose near 10% in 2022 to $1.4tr. It forecast sales will reach near $2tr by 2027, growing at a CAGR of 6.1%.
