August 12, 2014

The Dubai Chamber of Commerce and Industry forecasts that the global halal food and beverage (F&B) market will grow from US$1.1 trillion in 2013 to US$1.6 trillion by 2018 at a compound annual growth rate (CAGR) of around 6.9%.

The halal F&B market includes raw chicken and beef, processed foods, and cold drinks. In 2012, it accounted for 16.6% of the global F&B market, as per the report. Halal meat is an important part of the market, led by unpackaged meat which had a market share of an estimated 78.7% in 2013, while packaged meat represented a 21.3% share, according to the report.

The halal food industry is growing mainly in countries in the Middle East and North Africa, South and South East Asia, with Indonesia being the biggest halal food market, valued at US$197 billion in 2012, followed by Turkey (US$100 billion), according to the report. In the Middle East, Saudi Arabia is the largest halal food market in the region, followed by the UAE, Kuwait, Oman, Qatar and Bahrain.

Dubai, which imported more than of its meat from Brazil in 2013, re-exports only 10% of imported meat annually as the majority is consumed domestically.

Packaged food that was valued at around Dh11.1 billion (US$3.02 billion) was sold in the UAE last year, and the market is expected to rise to Dh14 billion (US$3.81 billion) by 2018, with sales growing at a CAGR of around 4.78%, the Chamber stated in the report.

The majority of sold meat in the UAE is uncooked, with retail sales accounting for about 43.8% of the UAE uncooked meat market in 2013, while food service business, such hotels, restaurants and catering outlets, accounted for around 47.9%.