This initiative, primarily focusing on the Islamic population worldwide, which numbers around 1.6 billion, is a collaborative effort among the Islamic Chamber of Commerce and the Chambers of Makkah and Madinah.
It aims to elevate Saudi Arabia, particularly its sacred cities of Makkah and Madinah, as premier hubs for halal products. The scope of halal certification here broadens to include sectors such as tourism and cosmetics, beyond just the food industry.
With the global halal industry’s market cap hitting an estimated USD 2.6 trillion by the end of 2020, Saudi Arabia is stepping up to meet the growing demand for halal products, not just among Muslims but also non-Muslims who are drawn to the health benefits associated with halal food. This trend is part of a larger movement towards healthier eating habits.
In alignment with Vision 2030, Saudi Arabia’s government has been proactive, hosting the 1st Saudi International Halal Expo 2021 and mandating Halal Slaughter Certificates to uphold the quality of halal food, catering to both ethical and religious considerations. This effort is underscored by the Kingdom’s significant Muslim populace, which was roughly 31 million by the end of 2020, amplifying the demand for halal offerings within its borders.
To further this goal, strategic partnerships are being forged with the Halal Products Development Company (HPDC), which falls under the umbrella of the Public Investment Fund (PIF), with an eye towards realization by 2025. This move is in sync with the Saudi Vision 2030, which prioritizes innovation and investment in the halal sector to diversify the economy. The Kingdom is actively engaging in global collaborations, hosting forums like the Makkah Halal Forum, and advancing certification processes to cater to international halal product demand and sculpt the industry’s trajectory.
Technological advancements and evolving consumer behaviors, including the surge in online shopping and a heightened demand for meat and alternative meat halal products, play a crucial role in widening the scope of Saudi Arabia’s halal food market. The market’s potential and receptivity to international suppliers were highlighted with the approval granted to Marfrig Global Foods for exporting beef and other meat products to Saudi Arabia in 2021.
The segmentation of the Saudi Arabia Halal Food Market based on distribution channels—spanning online stores, hypermarkets, supermarkets, specialized stores, and more—and various product types like meat, dairy, fruits & vegetables, and cereals & grains, showcases the market’s diversity. With promising revenue growth and forecasts predicting continued expansion from 2023 to 2030, the market offers significant opportunities for both local and international businesses.
The halal food market in Saudi Arabia is witnessing exponential growth, propelled by consumer demand, government backing, and technological innovations. As the market flourishes, it opens up myriad opportunities for both domestic and international entities to thrive, fitting neatly into Saudi Arabia’s wider vision for economic diversification and innovation under Vision 2030. This initiative not only promises to bolster the halal market but also positions Saudi Arabia as a leader in this increasingly important sector.
