Is China poised to dominate the global halal food market?

China has the potential to become a major player in the halal food industry. But is the world’s second-largest economy ready to take on this role?

China’s halal food market is expanding rapidly, driven by its sizeable Muslim population and rising global demand for halal-certified products. The country’s Muslim population, currently estimated between 21 to 23 million - exceeding that of many Middle Eastern nations - is projected to reach 30 million by 2030.

Key regions in northwest China, such as Ningxia, Xinjiang, Gansu, and Qinghai, are particularly favourable for halal businesses. These areas, home to large Muslim communities, have robust halal certification systems and local support. 

“These areas, home to substantial Muslim communities and [the largely Muslim] Hui autonomous region, have well-established halal certification systems and strong government support, making it easier for businesses to obtain authoritative certification,” said Abdul Rahim Albert Hsiu, managing director of Zhengzhou-based ARA Halal Certification Services Centre.

Coastal provinces like Guangdong, Fujian, Zhejiang, Jiangsu, and Shandong also contribute significantly to halal food exports, with established connections to international certification bodies, says Hsui.

At the same time, the concept of halal food is gaining traction with non-Muslim consumers in China, who associate it with high quality standards. 

“Halal food, known for its stringent production standards and quality, is gaining popularity among non-Muslim consumers, particularly health-conscious younger generations,” explained Hsiu. 

Expanding global reach

On the global stage, China aims to expand its share in the $180 billion global halal food market, currently dominated by countries like Brazil and Malaysia. 

In 2022, China was the ninth-largest halal food exporter to the Organization of Islamic Cooperation (OIC) member states, with $10.4 billion in exports - just 5.8% of the global market, according to the 2023/24 State of the Global Islamic Economy (SGIE) report. 

The country’s ambitions are closely tied to the Belt and Road Initiative, which connects it to numerous Muslim-majority nations. With 22 free trade agreements already in place and 12 more under negotiation, China is positioning itself to meet the growing demand for halal-certified products across Southeast Asia, the Middle East, Africa, and North America.

“With the advancement of the Belt and Road Initiative, economic and trade cooperation between China and Islamic countries has deepened, significantly increasing the demand for halal food exports,” said Hsiu.

In 2024, ARA Halal Certification Services Centre assisted 240 companies in China in securing halal certification for exports, marking a 22% increase compared to 2022. According to Hsiu, the certification process typically takes about one month, depending on the business's preparedness and the efficiency of the certification body. 

Fragmented system

Despite its vast potential, China’s halal food industry faces challenges, one of the most pressing being the lack of a unified national halal certification system. Currently, different provinces and regions have their own certification authorities and standards. This inconsistency creates complexity and adds costs for businesses seeking certification.

To address this, the Chinese government is working to standardize halal certification nationwide by collaborating with Islamic associations and drawing from the standards of leading halal markets.
 
“China has taken various measures to promote standardization of halal certification. For example, the central government, in collaboration with Islamic associations across the country, has developed region-specific guiding standards.” said Hsiu.

“Some provinces have also worked with international halal certification bodies, referencing standards from countries like Malaysia and Indonesia to gain experience for a future unified national standard.”

Raising awareness among non-Muslim consumers and supporting small and medium-sized enterprises (SMEs) to comply with strict halal supply chain requirements are additional hurdles, noted Hui.

Hong Kong and Macao: Halal hubs in the making

Hong Kong has made great strides in becoming more Muslim-friendly. In collaboration with the Incorporated Trustees of the Islamic Community Fund (also known as the Board of Trustees, or BOT) and Crescent Rating, the city introduced enhanced halal certification standards in 2024, aiming to certify over 500 establishments by end of 2025.

“The new halal certification scheme aims to simplify the existing process, reducing unnecessary steps so that businesses can obtain recognition by the Hong Kong Tourism Board/Crescent Rating much easier,” said Sharifa Leung, founder of Hong Kong-based halal consultancy 3 Hani Enterprises.

Invest Hong Kong is also promoting the city as a halal business hub, leveraging its proximity to over a quarter of the global Muslim population. Notably, the government department has been collaborating with food and beverage companies focused on halal offerings whilst supporting trade fairs related to halal products.
 
“We’re witnessing a growing trend in halal food businesses in Hong Kong, as the city is within a three to six-hour flight of over 30% of the world’s Muslim population. This proximity presents significant potential for growth,” Sindy Wong, head of tourism and hospitality at Invest Hong Kong told Salaam Gateway.

“Recently, we’ve been assisting halal-certified food trading projects from Beijing, Qinghai, and Singapore in establishing their businesses in Hong Kong,” she said.

Although there are no specific incentives exclusively for halal food businesses, companies establishing operations in Hong Kong can access various funding schemes, said Wong. These include the Dedicated Fund on Branding, Upgrading, and Domestic Sales (BUD Fund) and the SME Export Marketing Fund, which support businesses in expanding their reach beyond Hong Kong.

Meanwhile, Macao is rolling out its own halal food certification program to attract Muslim travellers, particularly those from Northwest China and Southeast Asia. As of August 2024, BOT had already certified 25 restaurants and factories in Macau.

With continued efforts to unify halal certification standards and foster industry expertise, China is well-positioned to capitalize on its growing domestic market and tap into lucrative international ones. By addressing current challenges, the country can become a formidable force in the global halal food industry.