Indonesia Halal Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Halal Market Size

• The Indonesia halal market size was valued at USD 318.91 billion in 2024 and is expected to reach USD 922.57 billion by 2032, at a CAGR of 14.2% during the forecast period
• The market growth is largely fueled by the increasing global Muslim population and rising awareness around halal certification standards, driving demand across food, pharmaceutical, cosmetic, and personal care sectors in both Muslim-majority and non-Muslim regions
• Furthermore, rising consumer preference for ethically produced, clean-label, and high-quality products is positioning halal-certified goods as a trusted choice beyond religious requirements. These converging factors are accelerating the adoption of halal products across mainstream retail, thereby significantly boosting the industry's growth

Halal Market Analysis

• Halal products are those that comply with Islamic dietary and ethical laws, extending across food, beverages, pharmaceuticals, cosmetics, and personal care items. These products are certified through standardized processes that ensure compliance with Shariah principles, addressing concerns over ingredient sourcing, processing methods, and safety
• The growing demand for halal products is primarily driven by expanding halal consumer bases, increasing regulatory clarity, and the rising penetration of halal-certified offerings in global retail and e-commerce platforms
• Halal certified segment dominated the market with a market share of 82.6% in 2024, due to stringent consumer demand for authenticated and traceable products. Trust in religious compliance and food safety standards continues to be a top priority, with certifications from recognized bodies such as JAKIM, MUIS, and IFANCA acting as a major purchase determinant

Report Scope and Halal Market Segmentation

Halal Market Trends

Rising Demand for Ethical and Sustainable Sourcing

• The Indonesia halal market is increasingly driven by consumer awareness around ethical sourcing and sustainability, reflecting global shifts toward responsible production and consumption in Halal-certified products
  • For instance, leading companies such as Indofood Sukses Makmur and Nestlé Indonesia are adopting sustainable supply chain practices and sourcing certified halal ingredients aligned with environmental and social governance (ESG) criteria to meet consumer expectations and regulatory requirements
• Growing emphasis on traceability and transparency through blockchain and digital certification systems is enhancing trust in the authenticity and sustainability of halal products
• Consumer preference is shifting towards Halal products that combine religious compliance with eco-friendly packaging, reduced food waste, and fair labor practices
• Government initiatives, including regulations by the Halal Product Assurance Organizing Agency (BPJPH), promote sustainable production methods and certification to strengthen Indonesia’s position as a global halal hub
• Collaboration between local producers, international halal certification bodies, and sustainability organizations is accelerating innovations in eco-friendly halal food, cosmetics, and pharmaceuticals

Halal Market Dynamics

Driver

Growing Muslim Population

• Indonesia’s large and expanding Muslim population remains the dominant growth driver for the halal market, generating robust demand across food, beverages, personal care, and lifestyle products
  • For instance, PT Mayora Indah, a leading Indonesian consumer goods company, has capitalized on the growing Muslim population by expanding its halal-certified product portfolio, driving significant growth in domestic and export markets
• Increasing middle-class income and urbanization enhance purchasing power and demand for premium and convenience halal-certified products
• The government’s stringent halal certification policies, including the mandatory halal certification effective from 2024, underpin consumer confidence and expand certified product portfolios
• Indonesia’s status as the world’s largest Muslim consumer market attracts international halal brands such as McDonald’s and KFC, who successfully localize products to comply with halal standards and capture market share

Restraint/Challenge

Halal Fraud and Misrepresentation

• Incidents of halal fraud and misrepresentation pose significant challenges by undermining consumer trust and complicating industry regulation and certification enforcement
  • For instance, government and certification agencies such as BPJPH and LPPOM MUI regularly identify and sanction producers failing to meet halal compliance, highlighting the ongoing risk of uncertified or counterfeit halal products in local and export markets
• Fragmented supply chains and lack of transparent traceability make it difficult to verify halal integrity from raw materials to finished goods, increasing vulnerability to adulteration or contamination
• High costs and complex processes for halal certification and monitoring can discourage small-scale producers from compliance, perpetuating market risks
• Rising consumer awareness and expectations for authenticity demand stronger enforcement, technological solutions for traceability, and industry-wide collaboration to mitigate fraud and support market growth

Halal Market Scope

The market is segmented on the basis of type, product category, brand, certification status, and distribution channel.

• By Type

On the basis of type, the halal market is segmented into food and beverages, dietary supplements, pharmaceutical, sports nutrition, personal care, cosmetic, and others. The food and beverages segment dominated the largest market revenue share in 2024, largely attributed to the growing global Muslim population and heightened consumer awareness regarding halal dietary requirements. The increasing availability of halal-certified meat, dairy, and ready-to-eat food products across mainstream retail chains supports broader adoption, while non-Muslim consumers are also showing growing interest due to perceptions of higher quality and hygiene standards in halal processing.

The personal care segment is anticipated to witness the fastest growth rate from 2025 to 2032, driven by a rising demand for transparency in cosmetic formulations and increased preference for cruelty-free, alcohol-free, and ethically produced products. Consumers, especially in Southeast Asia and the Middle East, are increasingly seeking halal-certified beauty and skincare solutions, supported by expanding product portfolios from major multinational brands and local startups.

• By Product Category

On the basis of product category, the halal market is segmented into conventional and organic. The conventional segment held the largest market revenue share in 2024, supported by its affordability, wide availability, and established supply chain networks across both emerging and developed economies. Mass-market halal products in the conventional segment are favored by retailers due to easier stock replenishment and pricing strategies that cater to middle-income consumers.

The organic segment is projected to grow at the fastest CAGR from 2025 to 2032, fueled by a rising intersection of health-conscious and religious dietary practices. Consumers are increasingly drawn to halal products that are also organic, perceiving them as cleaner and more natural. This dual certification trend is gaining popularity particularly in regions such as Europe and North America, where sustainability, ethical sourcing, and clean labeling are key purchase drivers.

• By Brand

On the basis of brand, the halal market is segmented into private label and branded. The branded segment accounted for the largest market share in 2024 due to strong consumer trust, consistent product quality, and robust marketing efforts by established companies. Branded halal products often come with prominent certification labels, appealing packaging, and endorsements from regulatory bodies, which reinforce consumer confidence.

The private label segment is expected to grow at the highest rate from 2025 to 2032, as large retailers increasingly introduce halal-certified lines under their store brands. Competitive pricing, rising demand for localized products, and the ability to cater to niche markets are contributing factors, particularly in countries with growing Muslim diaspora communities.

• By Certification Status

On the basis of certification status, the halal market is segmented into halal certified and non-certified. The halal certified segment held the dominant revenue share of 82.6% in 2024, driven by stringent consumer demand for authenticated and traceable products. Trust in religious compliance and food safety standards continues to be a top priority, with certifications from recognized bodies such as JAKIM, MUIS, and IFANCA acting as a major purchase determinant.

The non-certified segment is expected to witness moderate growth, primarily in regions where halal awareness is still evolving or informal food sectors dominate. However, as regulatory scrutiny and consumer education increase, the demand for clearly certified products is likely to limit the long-term potential of this segment.

• By Distribution Channel

On the basis of distribution channel, the halal market is segmented into store-based retailers and non-store retailers. The store-based retailers segment accounted for the largest market share in 2024, supported by the strong presence of supermarkets, hypermarkets, and specialty halal stores that offer physical product verification and in-person consultation. These stores also capitalize on regional product assortments and dedicated halal aisles, making them a preferred choice for consumers.

The non-store retailers segment is projected to grow at the fastest pace from 2025 to 2032, propelled by the rapid expansion of e-commerce platforms and direct-to-consumer halal brands. Online availability of certified products, global delivery capabilities, and personalized shopping experiences are key drivers of growth, particularly among tech-savvy younger consumers and expatriate populations seeking authentic halal products across borders.

Halal Market Share

The halal industry is primarily led by well-established companies, including:

• Nestlé S.A. (Switzerland)
• Unilever Food Solutions (U.K.)
• Cargill, Incorporated (U.S.)
• PT Kalbe Farma Tbk (Indonesia)
• Pharmaniaga Berhad (Malaysia)
• PT Sreeya Sewu Indonesia Tbk (Indonesia)
• PT Paragon Technology and Innovation (Indonesia)
• Duopharma Biotech Berhad (Malaysia)
• PT Darya-Varia Laboratoria Tbk (Indonesia)
• Bio Farma (Indonesia)
• PT Hokkan Indonesia (Indonesia)
• Clara International Beauty Group (Malaysia)
• Simpor Pharma Sendirian Berhad (Brunei)
• Indfrag Biosciences (India)

Latest Developments in Indonesia Halal Market

• In November 2024, Deli Halal, a Kansas-based producer of halal-certified meat and cheese products, expanded its footprint in the U.S. retail market by launching a new line of halal-certified sliced deli meats in major supermarket chains such as Giant Food Stores and Stop & Shop Supermarkets across New England and the East Coast. This development significantly strengthens the availability and visibility of halal offerings in mainstream retail, meeting growing consumer demand for convenient, ready-to-eat halal protein options. It also marks a strategic move to normalize halal food consumption among broader demographics, while catering to the evolving needs of Muslim communities seeking accessible halal-certified protein alternatives
• In June 2022, The Halal Food Company introduced five ready-made halal-certified meals in Sainsbury's stores across the U.K., including chicken curry with basmati rice, peri-peri stir fry with grilled chicken, beef lasagna, shepherd’s pie, and macaroni pasta with meatballs. This product expansion caters to the rising demand for convenient, diverse, and flavorful halal meal options among busy urban consumers. It also supports the growing trend of retail-ready halal food in Western markets, where multicultural dietary preferences are increasingly reflected in mainstream product offerings, thereby enhancing market penetration and brand recognition
• In March 2022, PT INDOFOOD SUKSES MAKMUR Tbk launched Indomie Soto Banjar Limau Kuit, a unique instant noodle flavor inspired by the regional cuisine of South Kalimantan, Indonesia. Featuring a zesty soup profile with kaffir lime and rich toppings, the product is designed to captivate consumers with adventurous palates seeking authentic local tastes. This launch reinforces Indofood’s position as a leader in halal-certified convenience foods and demonstrates how regional flavor innovation can drive brand loyalty and broaden appeal in domestic and international halal markets
• In February 2022, PT Paragon Technology and Innovation unveiled the Wardah Crystal Secret skincare line, formulated with double the concentration of Edelweiss flower extract to promote skin radiance and brightening. Aimed at health-conscious and beauty-focused halal consumers, the launch addresses increasing demand for high-performance halal cosmetics that align with both ethical standards and advanced skincare needs. By combining innovation with halal compliance, Wardah strengthens its leadership in the halal personal care space while tapping into the premium skincare segment
• In February 2022, Berlin-based startup Gethalal Group entered the halal food delivery market with a service tailored to the supermarket needs of Muslim families in Europe. The platform offers direct-to-door access to a wide variety of halal-certified products, aiming to streamline halal grocery shopping through digital convenience. This initiative enhances accessibility for underserved Muslim communities and also positions Gethalal as a key digital disruptor in the European halal food ecosystem, capitalizing on the shift toward online retail and on-demand delivery services

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