International Halal Trade: structure, trends and emerging requirements

The halal market is an estimated USD 2.5 trillion market, consisting of halal food (USD 1.5 trillion), followed by modest fashion (USD 327 billion), media & creation (USD 260 billion), travel (USD 217 billion), pharma (USD 107 billion), and cosmetics (USD 87 billion). The halal market is growing between 5-7% year-on-year and Muslim-friendly travel even double digit at 12.1% year-on-year. The latest State of The Global Islamic Economy Report 2024/25 by DinarStandard clearly shows the structure of international halal trade. The biggest importers of Muslim (majority) countries, or also known as Organisation of Islamic Cooperation (OIC) countries, are Saudi Arabia (USD 43.1 billion), followed by UAE (USD 41.3 billion), Turkiye (USD 33.9 billion), Indonesia (USD 29.6 billion), and Malaysia (USD 26.8 billion). However, a year-on-year decrease of 1.8% is expected as these OIC countries are increasing production capacity. On the other hand, for the largest exporters to OIC we see a very different picture, which is dominated by non-OIC countries. The 5 largest exporters to OIC are namely China (USD 32.5 billion), India (USD 28.9 billion), Brazil (USD 26.9 billion), Russia (USD 20.6 billion) and US (20.2 billion). No OIC countries in the top 5!

During my recent visit to China in October this year it is evident that China is not only a leading supplier of raw materials, but also a strong producer of a wide range halal certified consumer products, including modest fashion. China is very well positioned to take an important role in halal production as they have a strong agriculture sector and control of the entire supply chain, supported by its logistics infrastructure. China is dominating the top 10 of largest seaports by container TEU or cargo tonnage rankings (2024): Port of Shanghai (1), Port of Ningbo-Zhoushan (3), Port of Shenzhen (4), Port of Qingdau (5), Port of Tianjin (7), Port of Guangzhou (8), and Port of Hong Kong (9). For air cargo tonnage rankings (2024), Hong Kong International Airport (1), Shanghai Pudong International Airport (2), and Guangzhou Baiyun International Airport (9). My reading is that China is just getting started in the halal industry and can be expected to further increase its export to the OIC. They will maintain their number 1 position and further increasing the gap with number 2.

India, strategically located between the Middle East (the largest halal importers) and Southeast Asia (the largest halal markets) and has been a solid supplier of halal agri-food products to the OIC. India should be able to hold a leading (top 5) position in agri-food supply to the OIC, leveraging its agriculture sector, manufacturing sector, and labour market.

Today Brazil is world’s largest halal meat exporter, providing top quality poultry and beef to OIC markets and beyond. Brazil is also the largest exporter of coffee, soybeans, and orange juice amongst others. With a strong support from the Brazilian Government and organisations like the ArabBrazilian Chamber of Commerce, Brazil is likely to further increase its role in the halal value chain by exporting also processed food & beverages as well as its famous specialty food products and snacks from Brazil. Brazil has been hosting in October 2025 its third Global Halal Brazil Business Forum with prominent speakers and stakeholders from the Muslim world, halal industry, and Brazilian Government and industry. Brazil is further enhancing its halal ecosystem. Therefore, high expectations for Brazil in the coming years to further increase its halal trade volumes and possibility even increase its global halal export ranking to number 2.

The number 4 and 5 positions of Russia and US are not only close, but might also see other countries to enter in the coming years. There is a lot of pressure in the OIC to develop production capacity within OIC countries and enhance intra-OIC trade. However, building production capacity within the OIC will require major investments in developing halal industrial clusters. This only possible when OIC countries are able to build advanced halal ecosystems, with proper clustering, complete halal supply chain (including ingredients), address sustainability, and mobilise Islamic finance. OIC countries that are candidates to enter the top 5 halal exporters to the OIC in the coming ten years are Indonesia, Türkiye, and the Kingdom of Saudi Arabia.

Halal requirements are moving away from a product approach towards a supply chain approach, similar to food safety and cool chains, which is supported by local and international (OIC/SMIIC) halal standards. Leading halal brands (from both OIC and non-OIC countries) are already addressing halal throughout their supply chain. Indonesia has already mandated this by law since October 2024 for food (for food imports from October 2026), and other advanced OIC countries in Asia and the Middle East are expected to adopt similar regulations by 2030. Serving OIC markets require not only halal certification, but has implications for the entire supply chains. Important to educate and prepare exporting manufacturers that halal requirement go beyond the halal certificate and apply to the entire supply chain.

Hence, a critical success factor in the halal industry for the coming years will be the supply chain, covering key areas such as control of supply (raw materials, ingredients), ability to control halal integrity from source to point of consumer purchase, and ability to cluster the halal supply chains geographically. Top 5 exporters to OIC will need to excel in the halal supply chain.

Simplification of halal will be key, which is an important function of HSC Alliance where we are building an international halal supply chain network, harmonise halal supply chain protocols, and facilitating a halal supply chain rating for manufacturers, their supply chain, ports, logistics service providers, and industrial zones. Simplification can also be supported through halal ecosystems, halal industrial zones, in both OIC and non-OIC countries. Malaysia has been the pioneer in developing dedicated halal industrial zones to provide a halal ecosystem, which model has been followed by other countries. It is expected that advanced halal ecosystems, through dedicated halal industrial zones, will be further developed in both OIC (Asia, Middle East and Africa) as well as non-OIC countries (Asia, Africa, and South America).

In summary, the halal market is an attractive market few industries can afford to ignore. However, in order to be successful supplying to OIC countries halal needs to be addressed effectively throughout the supply chain. Supply chain excellence is not an option anymore, but an evident market requirement.