LONDON: The global halal food and beverage (F&B) market is set to boom in the next five years, driven by new entrants to the market.
The sector is expected to grow from $1.24 trillion in 2016 to reach $1.93 trillion by 2022, according to the “State of the Global Islamic Economy” report.
“Halal food is the largest and most diverse sector of the Islamic economy. New entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, ready-made meals, snacks and children’s food,” said the report, published by Dubai Islamic Economy Development Center (DIEDC) in conjunction with Thomson Reuters:
It revealed that Muslim spend on food and beverages is growing at nearly double that of global growth — creating significant opportunities for investment and the creation of global halal food brands.
Commenting on the report, Imran Kausar, co-founder of London-headquartered multinational halal food firm Haloodies, told Arab News: “The halal opportunity continues to grow with innovation and consumer-focused brands leading the way. Halal brands that capture a mainstream audience will open halal foods to even larger audiences.”
Food and beverage (F&B) leads Muslim spend by category, followed by clothing and apparel at $254 billion, media and entertainment at $198 billion, travel at $169 billion, and pharmaceuticals and cosmetics at $83 billion and $57.4 billion, said the report.
It notes that established players are expanding at home and abroad through franchising and that multinationals have also made major investments in Muslim-majority markets, anticipating rising demand.
Investment and sovereign wealth funds have been particularly active, and a number of halal investment funds are in development, it said.
Family-friendly halal travel is another growth market with the number of Muslims traveling at an all-time high, and there is corresponding demand for travel that adheres to Islamic values — from hotels and beach resorts, to dining options and airlines.
Halal hotel chains are emerging and family-friendly attractions are being developed in the GCC.
Along with a plethora of new online agencies catering to Muslim tourists, Muslim equivalents of Airbnb have emerged in the UK and globally. Muslim spend on travel was $169 billion in 2016, and is expected to grow to $283 billion by 2022.
Designer brands and boutiques are also developing new modest fashion lines and Ramadan collections.
The reports said: “Start-up modest fashion brands have also been making inroads around the world, particularly for hijabs, gaining traction by spreading the word through social media. Modest athletic apparel is a notably trendy segment, with Nike getting in on the act as well as Danish label Hummel. Muslim spend on clothing was $254 billion in 2016, and is forecast to reach $373 billion by 2022.
Romanna Bint-Abubaker, founder and CEO of global modest fashion brand Haute-Elan.com, told Arab News: “As the first global marketplace for modest fashion, we welcome international brands in producing collections and products for the fastest growing global consumer (Muslims). Our primary issue as a marketplace is the current supply does not meet demand and our consumers are still forced to go to the high street for their basic requirements.”
Global halal food sector set to boom as market grows
Global halal food sector set to boom as market grows
US pump prices surge as Iran war upends global energy supply
- Fuel prices jump over 10 percent as oil prices surge
- Analysts predict further price rises due to market conditions
MARIETTA/NEW YORK : US retail gasoline and diesel prices are soaring as the US-Israel war with Iran constrains oil and fuel exports, which could be a political test for President Donald Trump’s Republican Party ahead of midterm elections in November.
Fuel prices jumped more than 10 percent this week as oil rose above $90 a barrel, its highest in years, adding pain at the pump for consumers already strained by inflation.
Trump on Thursday shrugged off higher gasoline prices in an interview with Reuters, saying “if they rise, they rise.”
The president had vowed to lower energy prices and unleash US oil and gas drilling during his second term, but much of his tenure has been marked by volatility and uncertainty amid shifts in policies like tariffs and geopolitical turmoil.
The US is the world’s largest oil producer. It is a major exporter but also imports millions of barrels a day since it is the world’s largest oil consumer.
As of Friday, the national average prices for regular gasoline stood at $3.32 a gallon, up 11 percent from a week ago and the highest since September 2024, according to data from the motorists association AAA. Diesel was at $4.33, up 15 percent from a week ago, surging to the highest since November 2023.
Midwest, south feel the pinch
US motorists in parts of the Midwest and the South, including states that supported Trump, have seen some of the steepest increases in fuel costs since the conflict in Iran started.
In Georgia, a swing state, average retail gasoline prices rose 40.1 cents a gallon over the past week, according to fuel tracking site GasBuddy.
Andrenna McDaniel, a health care insurance worker in South Fulton, Georgia, said she was surprised to see prices skyrocket overnight.
“They jumped up so quickly,” she said on Friday, adding that she does not agree with the war at all.
McDaniel, a Democrat, said that for now she is only driving for the most important things, and feels lucky that she works from home so she does not have to drive as much as other people do. Georgia voted for Donald Trump in the 2024 election.
Trump voter Richard Soule, 69, a US Air Force veteran and a retired firefighter, said a little pain at the pump is worth Trump’s efforts to protect America.
“When President Trump went in there and bombed out their nuclear, and they just thumbed their nose at it, I believe he did the right thing at the right time,” Soule said on Friday as he filled up his Ford F-150 truck in Marietta, Georgia.
Other states, including Indiana and West Virginia have seen prices rise by 44.3 cents and 43.9 cents, respectively.
Prices may rise further
More pain may be on the way, analysts said, as oil prices continue to trend upward. On Friday, US oil futures settled at $90.90 a barrel, up nearly $10 and the biggest single-day rise since April 2020.
“Given current market conditions, the national average price of gasoline could climb toward $3.50 to $3.70 per gallon in the coming days if oil continues rising and supply disruptions persist,” GasBuddy analyst Patrick De Haan said.
The disruptions in the Middle East and the Strait of Hormuz, a key trade conduit, have boosted demand for US oil abroad, which in turn has driven up prices for domestic refiners too.
“The US has weaned itself off of its dependence on Middle Eastern crude, but obviously Asian refineries, and to a lesser extent, European refineries have not,” Denton Cinquegrana, chief oil analyst with OPIS. “That’s what you’re seeing happen in the spot market, because the demand for US exports rise, and so the price rise.”
Seasonal factors could add further pressure. Gasoline prices typically go up in the spring and peak in the summer due to higher gasoline demand and production of summer-blend gasoline, which is more costly to produce. Diesel fuel saw an even more aggressive jump since Iran began retaliating against US and Israeli strikes, significantly disrupting shipping in the Strait of Hormuz.
Global diesel inventories have remained in tight supply due to heavy demand for heating and power generation during a prolonged winter in the US and other parts of the world and a structural tightness of refining capacity. Sticker prices of everything from food to furniture go up when the cost of diesel goes up, as the fuel is mainly used in freight transportation, manufacturing, agriculture, and global shipping, analysts said.
“In a world where buzzword seems to be ‘affordability’, that is certainly not going to help,” Cinquegrana said.
