The global halal ingredients market is estimated to be valued at USD 45.7 billion in 2019 and is projected to reach USD 64.8 billion by 2025, recording a CAGR of 6.0%. Consumption of food items is also increasing due to the surge in the Muslim population worldwide, which is projected to drive the growth of the halal ingredients market. Halal ingredients are also gaining traction in the healthcare and pharmaceutical industries due to the growing demand for dietary supplements and its health benefits. Consumers are witnessing an increasing demand for on-the-go, convenient, nutritionally enriched, and functional food & beverage products, due to their busy lifestyles. The growing trends of healthy snacking and increasing awareness about functional food & beverage products are also projected to drive the market for halal ingredients during the forecast period.
The food and beverages segment is estimated to dominate the global halal ingredients market in 2019.
By application, the halal ingredients market was dominated by the food & beverages segment in 2018, in terms of value. The food companies are focusing on product innovations and providing halal products to cater to the growing demand among consumers. In addition, companies are focusing on gaining consumer trust with several marketing campaigns and coming up with a wide variety of halal food products for consumers, which is positively stimulating the growth of the market. The health benefits and cleanliness associated with halal-certified foods is also driving the halal ingredients market in the food industry. The growing standardization in the halal certification sector is projected to offer growth opportunities to the halal ingredients manufacturers in the food and beverage industry.
The flavor segment is estimated to account for a larger share in the halal ingredients market in 2019.
By type, the flavors segment is estimated to account for a larger share in the halal ingredients market in 2019. Flavors are intense preparations added to food products to stimulate or impart a particular taste, maintain the flavor after processing, modify an already existing flavor, and masking an undesirable flavor. The demand for flavors is attributed to the changing consumer preferences toward convenience foods and rising demand for consumer products. The increasing popularity of new and innovative flavors in convenience and ready-to-eat food products among the young generation is also driving the demand for halal-based flavors in the markets. Majority of the flavor companies are inclined toward obtaining halal certification due to the growing demand, which is projected to create profitable opportunities for manufacturers in the halal ingredients market.
Food&farming 