The global halal market is projected to soar, reaching over $3.27 trillion by 2028, up from $2.09 trillion in 2021. This upward trend presents significant opportunities for businesses in the food manufacturing sector.
Focusing specifically on the UK, research conducted by the Halal Monitoring Committee UK (HMC) and the University of Huddersfield reveals that the halal market accounts for approximately 15% of the nation’s overall meat and poultry sector, valued at £1.7 billion. If this market share remains stable over the next five years, it could grow to £2 billion by 2028, aligning with a projected average sector revenue of £13.5 billion.
With the UK Muslim community currently representing nearly 7% of the population—and expected to increase from 4 million to 13 million by 2050—the potential for growth in food and drink production within this market is substantial.
What is halal?
Halal is an Arabic term meaning lawful or permitted. In the context of food and drink, it refers to items that comply with Islamic law, encompassing not only the type of food but also its preparation, handling, and processing.
According to Hassan Gulzar, founder of the Universal Halal Authority, halal meat preparation involves several critical steps: “The animal needs to be slaughtered in a halal way, which involves the entire process. Today technology has advanced, and the process has changed, but if I take you back thousands of years: traditionally the first step is that the person slaughtering the meat needed to be Muslim. They must say the world of God (Allah) as they make the cut to demonstrate what the intention is – the intention being that the killing of the animal is for eating purposes. There needs to be one clean cut to the throat, ensuring the animal is killed instantly. Then, lastly, the blood must be drained from the animal before it can be processed.”
“Now in 2025, there isn’t a person slaughtering one lamb at a time because if that was the case no one would be getting fed! Today it’s much more automated, with a machine making the cut. But the principles are the same, with what we call an ‘Iman’ present, reading the word of God, and the animal bled out before moving on for further processing.”
Throughout the supply chain, it is essential to prevent contamination, particularly with prohibited items like pork and alcohol.
Opportunities in halal
Currently, there is a substantial opportunity for halal production in lamb, as noted by Gulzar. Despite a decline in overall lamb consumption in the UK over the past 20 years, AHDB data shows it remains a staple protein for the Muslim community, accounting for 30% of UK lamb sales by volume.
Research from AHDB indicates that 80% of Muslims in the UK consume lamb weekly, along with 64% consuming mutton weekly—compared to just 6% of the general UK population consuming lamb.
While health, price, and taste impact purchasing decisions, price remains the primary concern. Nevertheless, AHDB emphasizes that halal certification is a significant factor influencing meat purchases among most Muslim consumers.
Despite lamb’s growth, chicken remains the most favored protein among UK Muslims, with 92% consuming it weekly, compared to 69% of the general populace. Beef, while less prominently featured, still has a significant following with more than half of halal consumers engaging with it weekly.
Interestingly, younger Muslim consumers show an increasing appetite for beef, shifting towards Western dietary preferences, and are less inclined to purchase poultry and lamb than their more traditional counterparts.
While traditional dishes like curries still feature beef, younger consumers are diversifying their meals, opting for fare such as fajitas and spaghetti bolognese.
Moreover, the halal market expands beyond meat, as highlighted by Gulzar, who identifies growing opportunities in the sports nutrition sector, including whey protein powders and vitamins, which must avoid non-halal animal sources.
The Importance of Authenticity
Authenticity is critical within the halal sector, with many Muslims preferring specialist meat shops or butchers. Evidence from AHDB shows that only 35% purchase pre-packed halal meat, whereas 57% buy from specialist butchers, and 48% shop at halal counters in world food stores.
Currently, there is no governing body for halal in the UK. Gulzar points out that the lack of standardized certification poses challenges for the market. AHDB research underscores that 92% of halal consumers consider authentication a crucial criterion when shopping.
Given the complexities of modern food production, verifying halal compliance independently can be challenging. Hence, halal certification serves as a trusted assurance of authenticity.
“It’s all to do with reputation,” Gulzar asserts about the significance of certification, noting a trend among consumers eager to understand their food’s origins.
A single misstep can irreparably harm a brand’s reputation.
Additionally, Gulzar points out that certification also facilitates entry into new export markets. For manufacturers looking to expand into regions such as the Middle East, Southeast Asia, and parts of Africa, halal certification often becomes necessary.
Currently, a free trade agreement between the UK and the Gulf Cooperation Council (GCC), comprised of nations with large halal-consuming populations, is under negotiation. If successful, this deal could enhance bilateral trade by 16%, potentially increasing trade between the UK and GCC countries by an impressive £8.6 billion annually—on top of the existing £57.4 billion in trade.