MENA HALAL FOOD MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

• changing consumer perceptions of animal slaughter and suffering

The rising interest among consumers in the consumption of vegan food & beverage along with product introduction by halal manufacturers for these conscious consumers’ is expected to boost the MENA halal food market growth over the forecast period. Key players in the market are launching vegan products due to changing consumer perceptions of animal slaughter and suffering. For instance, in January 2021, AI Islami Foods, United Arab Emirates (UAE)-based halal food giant, launched plant-based burger. The product is made from a combination of sunflower protein sourced from an organic non-genetically modified organisms arm, fava beans, and peas. The initiative was taken in response to the growing demand for vegan food, which will further fuel the MENA halal food market.

• reduced demand for meat products due to safety and hygiene concerns during the pandemic

The disruption of the food supply chain, owing to the rapid spread of COVID-19 affected the food and beverage market including the halal food industry. Leading manufacturers worldwide experienced a reduction in labor and disruption in the import and export of halal food, which significantly affected the consumption and sales capability. Moreover, reduced demand for meat products due to safety and hygiene concerns during the pandemic negatively affected the industry. For instance, in July 2021, in the U.S., sales of meat at grocery stores were down by over 12% compared to the year before the pandemic.

Market Restraints

• Stringent halal regulations

Stringent halal regulations such as UAE.S OIC/SMIIC 3 are major challenges for small and medium-scale manufacturers to compete in the halal food market. Moreover, halal food is relatively more expensive than its substitutes due to the additional procedures it has to undergo with respect to Islamic laws. Such factors may hinder growth of the market in the near future.