Halal food market grows to $1.1 trillion industry

Updated 11 August 2014

Halal food market grows to $1.1 trillion industry

Halal food and beverage market is becoming increasingly popular worldwide and has grown to a $1.1 trillion industry in 2013, states the latest research note by Dubai Chamber of Commerce and Industry based on a recent study by Thomson Reuters in collaboration with Dinar Standard.
The Dubai Chamber report assumes significance as preparations are under way for the 10th World Islamic Economic Forum (WIEF) to be held in Dubai from Oct. 28 to Oct. 30, which will discuss halal food as a major component of the Islamic economy.
Halal food market includes a large variety of products from raw chicken and beef to halal processed foods and cold drinks.
The chamber report estimates that in 2012, halal food and beverage market accounted for 16.6 percent of the global food and beverage market, indicating greater awareness worldwide about the sustainable and wholesome principles that are at the core of halal food production.
The outlook remains bright as the report expects the market to be worth $1.6 trillion by 2018, growing at a Compound Annual Growth Rate (CAGR) of about 6.9 percent.
Commenting on the report, Abdul Rahman Saif Al-Ghurair, chairman of Dubai Chamber, said: “We see opportunities to enhance the halal food industry.”
He said: “The research finding on halal food sector is of considerable importance for the UAE food and beverage business, especially since halal food is a key pillar in the Dubai Capital of Islamic Economy initiative launched in 2013.”
He said: “Based on the initiative, Dubai has the capability to create new avenues for growth in this sector, and become an international center for halal industry.”
According to the Dubai Chamber report, the UAE halal food consumption market was valued at around $20 billion in 2012.
Halal meat is an important component of this market, dominated by unpackaged meat which, according to 2013 estimates, constitutes about 78.7 percent of the market share while packaged meat took the remaining 21.3 percent.
Most of the meat sold in the UAE is uncooked, with retail sales accounting for about 43.8 percent of the UAE uncooked meat market in 2013 while food service business, including hotels, restaurants and catering outlets, constituting about 47.9 percent, says the report.
Highlighting the preference of UAE residents for packaged food as they look for convenience in their busy lifestyle, the research note shows that packaged food worth about AED 11,148 million was sold in the UAE in 2013.
Increasing demand is expected to take the packaged food market to about AED14,078 million by 2018, with sales value growing at a CAGR of about 4.78 percent during this period, the report states, indicating a long-term business opportunity in the UAE halal food market.
The report identifies branding and franchising in this area as critical to UAE businesses looking to increase profit margins and new opportunities for international expansion.
Globally, halal food industry is growing in a number of markets mainly in countries in the Middle East and North Africa (MENA) region, South and South East Asia.
Indonesia is the biggest halal food market with market value of $197 billion in 2012, according to the report.
Turkey, with $100 billion, is the second largest market.
The report highlights the potential for UAE businesses to source lower cost basic food products from a variety of countries across Africa, Asia and Latin America, which can then be further processed, packed and branded to be sold in international markets.
Given the strong expected population growth and income growth across these developing regions, businesses could expect further robust demand increases in these markets, the research note adds.
As a major center for halal food, Dubai imports meat from a number of markets.
Brazil accounted for more than half of Dubai’s meat imports in 2013, supplying 166 thousand metric tons (TMT) of the total volume of 314 TMT to take 53 percent of the market share, far ahead of the US at second place with 14 percent, Dubai Chamber stated based on Dubai Customs data.
The US exported 43 TMT while Australia was a distant third with 27 TMT, taking just 9 percent market share.
Among the neighboring countries, Pakistan and India each supplied 5 percent of the total volume, while Ethiopia cornered 3 percent.


Saudi Arabia, Iraq confirm full commitment to OPEC+ agreement- statement

Updated 13 July 2020

Saudi Arabia, Iraq confirm full commitment to OPEC+ agreement- statement

  • Both countries ministers said efforts by OPEC+ to meet their output cuts will enhance market stability

RIYADH: Saudi Arabia and Iraq on Monday confirmed their full commitment to the OPEC+ agreement.
Saudi Minister of Energy Prince Abdulaziz bin Salman, and Iraqi Oil Minister Ihsan Abdul Jabbar Ismail held discussions on developments in the oil markets, the improved global demand for oil, and progress in implementing the current OPEC+ agreement to reduce production.
OPEC and its allies led by Russia, a group known as OPEC+, agreed to cut oil output from May by a record 9.7 million barrels per day (bpd) after the coronavirus crisis destroyed a third of global demand.
The record cuts are now due to run to the end of July, before tapering to 7.7 million bpd until December.
But some OPEC members have not fully delivered on their agreed production cuts since May.
During a phone call, the Saudi minister commended Iraq’s performance within the framework of the agreement, as the country’s level of commitment in June reached nearly 90 percent.
Prince Abdulaziz thanked the Iraqi minister for his efforts in reaching the target, and expressed his confidence that Iraq will continue to improve its level of compliance with the oil cuts.
Ismail said Iraq would continue to improve compliance with the cuts to reach 100 percent by the start of August, pledging to compensate from July to September for the overproduction in May and June.
Both ministers also said that efforts by OPEC+, and the participating countries in the agreement, to meet their output cuts would enhance market stability and speed up their balanced recovery.

  • With Reuters