Global demand for halal products could reach $2 trillion by 2024

Cumulative demand for halal products could rise to $2 trillion by 2024 from about $1.4 trillion a year today. Dmitry Krasnov, head of the Agroexport center subordinate to the Ministry of Agriculture, said this during an online conference "Export of Russian halal products: a strategy for success." According to Krasnov, a third of the total demand for halal products comes from the countries of the Middle East and North Africa - about $440 billion.  

According to Krasnov, the total volume of imports of halal products in the world is estimated at more than $250 billion, with the three largest importing countries being the countries of the Middle East and North Africa: Saudi Arabia, the United Arab Emirates and Egypt. In turn, the leaders in the export of halal products are Brazil, India, Australia and the United States . “This suggests that it is possible to build an effective halal ecosystem in a non-Muslim country,” Krasnov believes.  

The head of Agroexport added that the countries of the Middle East and North Africa import key types of halal products worth more than $17 billion a year. The Gulf countries and Egypt account for 72% of the total imports of halal products.  

At the conference, Krasnov also said that Russia's potential for the export of halal products in 2024 is $400 million, by 2030 it could almost double. “In this case, by 2024 it will grow almost four times compared to 2020. The main increase will be provided by deliveries to Saudi Arabia (40% of the increase), the United Arab Emirates (31%), Iraq (13%),” he said.

According to Krasnov's presentation, in 2020 our country exported halal products worth $116 million compared to $111 million in 2019. Most of the exports are meat products and confectionery. According to the forecast, in 2024 their deliveries to the markets of the Middle East and North Africa will amount to $234.9 million and $182.1 million, respectively.

According to Krasnov, in order to realize the export potential, Agroexport initiated the development of a strategy for promoting Russian halal products to the markets of the Middle East and North Africa. “In the course of the study, the markets for halal products (confectionery, meat and dairy products) were studied, matrices of promising export markets were formed by product types, and detailed industry models of presence in the priority market were developed,” he said.

Rincon Management Executive Director Konstantin Korneev said that it is simply impossible to supply non-halal products to many MENA countries. “Meat, milk , confectionery and other goods are exported there from Russia. In general, the prospects for agricultural exports to these countries are quite positive,” he commented.

Speaking about the risks associated with the export of halal products, Korneev noted logistical difficulties. “Compared to competing countries, the transportation of goods is quite long. It is also worth noting the high cost of production associated with the climate factor and the level of financial and debt burden. There are also regulatory risks: countries can artificially limit imports, as well as veterinary risks,” Korneev listed.