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In today's rapidly globalizing world, top companies across industries are increasingly seeking halal certification to access one of the fastest-growing consumer markets. Driven by a growing Muslim population and rising demand for ethically sourced, high-quality products, the global halal economy is projected to reach $5.9 trillion by 2033. From food giants like Nestlé to cosmetics brands like L'Oréal, companies are vying for halal certification to expand their reach, build consumer trust, and capitalize on emerging market opportunities. This strategic move is driven not only by religious requirements but also by alignment with global trends in sustainability, transparency, and ethical consumption. By July 2025, the push for halal certification is reshaping industries, with companies embracing it as a key driver of global growth.

The booming halal economy: A lucrative opportunity

The halal economy encompasses a wide range of industries, including food, beverages, cosmetics, pharmaceuticals, fashion, and tourism. With over 1.9 billion Muslims worldwide (nearly 25% of the global population), demand for halal-certified products is skyrocketing. According to a recent report, the global halal food market alone is projected to grow at a compound annual growth rate (CAGR) of 8.92% from 2025 to 2033, reaching $5.2 trillion by the end of the forecast period. This growth is driven by the increasing Muslim population (projected to reach 2.2 billion by 2030) and the rising purchasing power of young, tech-savvy Muslim consumers.

Beyond Muslim consumers, halal certification is also gaining traction among non-Muslims, who associate it with quality, hygiene, and ethical production. For example, halal food is considered safer and healthier due to its stringent standards, including humane animal treatment and the exclusion of harmful additives like alcohol or pork derivatives. This widespread appeal has prompted major companies to incorporate halal compliance into their strategies, aiming to capture diverse markets in regions like Southeast Asia, the Middle East, and even Western countries with growing Muslim populations.

Why Companies Prioritize Halal Certification

The race for halal certification is driven by several strategic and economic factors. For many companies, it serves as a gateway to Muslim-majority markets, where imported products must adhere to halal standards. Countries such as Malaysia, Indonesia, Saudi Arabia, and the UAE require halal certification for food, cosmetics, and pharmaceuticals, making it a prerequisite for market entry. For example, the UAE holds a 36% share of the global halal food market, followed by Saudi Arabia at 21%, highlighting the significant potential in these regions.

Furthermore, halal certification strengthens brand credibility and consumer trust. The rigorous certification process, which includes ingredient reviews, facility audits, and supply chain transparency, ensures consumers of product integrity. Companies like Nestlé, with certified products like noodles, beverages, and chocolate, have achieved significant market penetration in Muslim-majority countries due to their commitment to halal standards. Similarly, brands like Cargill and QL Foods have expanded their global presence by adhering to strict halal protocols, ensuring compliance with international standards set by organizations like Malaysia's JAKIM and the American Halal Foundation (AHF).

The main reasons why top companies seek Halal certification include:

• Access to high-growth markets: Halal certification provides access to Muslim-majority countries and regions with large Muslim populations, such as Southeast Asia and the GCC.

• Enhanced consumer trust: Certification signals quality, safety, and ethical production, appealing to both Muslim and non-Muslim consumers.

• Competitive advantage: Certified brands stand out in a crowded market, attracting retailers and e-commerce platforms that prioritize halal products.

• Aligned with ethical trends: Halal standards align with global demands for transparency, sustainability, and humane practices.

• Diversified revenue streams: Catering to the halal market enables the company to tap into new consumer segments and improve profitability.

• Supports global trade: Certification facilitates exports by meeting regulatory requirements in Muslim-majority countries.

  
  

Industry leaders set the trend

Large companies are not only adapting to the halal market; they're actively shaping it. Nestlé, one of the world's largest food companies, has invested heavily in halal certification for its diverse portfolio, from dairy to confectionery. In Malaysia, Nestlé opened a plant-based manufacturing facility in 2021 to produce halal-certified vegan products under its Harvest Gourmet brand, responding to the growing demand for plant-based halal foods. Similarly, Al Islami Foods in the UAE launched a preservative-free plant-based beef burger in 2021, capitalizing on the trend for healthier and more ethical alternatives.

In the cosmetics sector, companies like L'Oréal and Unilever are pursuing halal certification to attract Muslim consumers who prioritize ethical and alcohol-free products. Driven by demand for cruelty-free and organic products, the global halal cosmetics market was valued at $61 billion in 2017. Brands like Iba, India's first halal-certified cosmetics line, are gaining attention by offering safe, ethical alternatives that resonate with modern consumers.

The pharmaceutical industry is also embracing halal certification, particularly for products containing animal-derived ingredients like gelatin. Companies are ensuring compliance by using halal-certified gelatin or plant-based alternatives, meeting the needs of Muslim consumers while aligning with global health trends. This strategic focus on halal compliance is evident in the efforts of companies like Prima Agri-Products, which produces high-quality halal frozen meat and non-meat products for global markets.

Challenges in the Halal Certification Race

Despite the numerous opportunities, obtaining halal certification also presents challenges. The process is rigorous, involving detailed audits of ingredients, manufacturing processes, and supply chains to ensure adherence to Islamic dietary laws. For smaller companies, the cost of certification and compliance can be a barrier, increasing product prices by 5-10%. Furthermore, varying standards across countries and certification bodies can complicate the process. For example, Malaysia's JAKIM and Indonesia's BPJPH have different requirements, necessitating a tailored approach for each market.

Another challenge is the risk of food fraud, where products are falsely labeled as halal, undermining consumer trust. To address this, certification bodies such as IFANCA and the American Halal Foundation emphasize transparency and traceability, using technologies like blockchain to ensure supply chain integrity. Educating consumers and businesses about halal standards is also crucial to maintaining market confidence.

The role of technology and innovation

Technology plays a key role in the development of the halal industry. Digital platforms such as DagangHalal and HalalTrip are making it easier for consumers to access certified products and services, from food to travel. Foodtech startups are leveraging AI and automation to streamline production and ensure compliance, while e-commerce platforms are expanding the availability of halal-certified goods. For example, grocery e-commerce has driven the rise of halal cloud kitchens and ghost kitchens, meeting the growing demand for convenient, certified meals.

Blockchain technology also increases transparency in the halal supply chain, enabling companies to track ingredients from source to shelf. This aligns with consumer demand for ethical and sustainable practices, further enhancing the appeal of halal-certified products. Major players such as Cargill are investing in advanced technologies to improve efficiency and reliability, ensuring their products meet global halal standards.

Global and regional developments

The growth of the halal economy is particularly evident in the Asia-Pacific region, which accounts for 48.5% of the global halal food market. Countries such as Malaysia, Indonesia, and Saudi Arabia are leading the way with strong certification frameworks and government support. For example, Indonesia transformed KNEKS into the Bureau of Islamic Economy (BES) in July 2025, aiming to position the country as a global halal hub by 2028. Meanwhile, Malaysia's JAKIM is a globally recognized authority, certifying products exported to over 180 countries.

Non-Muslim-majority countries are also capitalizing on this trend. Brazil, a major exporter of halal meat, has strengthened trade ties with Muslim-majority countries, while countries like Singapore and South Korea are establishing partnerships to promote halal imports and exports. In the UK, retailers like Marks & Spencer have launched halal ready meals, reflecting growing demand from diverse consumer groups.

The future of halal certification

As the halal economy continues to grow, companies are increasingly recognizing certification as not just a compliance requirement but a strategic asset. The rise of the halal tourism industry, projected to reach $300 billion by 2026, and the expansion of halal cosmetics and pharmaceuticals highlight the market's diversity. Forward-thinking brands are integrating halal compliance into their core operations, from product development to marketing, to build trust and loyalty among consumers.

Governments are also playing a role by implementing stricter regulations and standardized frameworks. The Organization of Islamic Cooperation (OIC) is working to harmonize global halal standards, simplifying trade and boosting consumer confidence. In the United States, driven by increasing diversity and demand for ethical products, the halal food market is projected to reach $1.5 trillion by 2033.

Strategic imperatives for global growth

The race for halal certification demonstrates the changing dynamics of the global economy. Top companies are not only catering to the needs of a growing Muslim consumer base, but also attracting a broader audience seeking ethically sourced, high-quality products. By achieving halal certification, brands can access high-growth markets, enhance their reputation, and align with global trends in sustainability and transparency. As the halal economy continues to expand, companies investing in certification today will be well-positioned to lead in tomorrow's markets, driving innovation and growth worldwide.