Japan’s halal food market poised for growth amid rising Muslim demand

Japan’s halal food sector is entering a pivotal phase, fueled by growing demand from Muslim-majority countries and an anticipated influx of Muslim tourists for upcoming international events.

The market's growth is being shaped by Indonesia’s halal product assurance law, which will soon require mandatory halal certification for all imported goods. This shift is already having ripple effects in Japan. 

“There are currently more than 1,000 halal-certified companies in Japan, primarily focused on exports,” says Hind Remon, chairperson of the Japan Halal Association (JHA). “While food remains a key category, demand is now expanding to include raw materials used in cosmetics, ahead of Indonesia’s planned implementation of the law for non-food items in October 2026.”

A growing emphasis on raw materials used in food, cosmetics, and pharmaceuticals—particularly chemical and biochemical ingredients—has emerged as one of the most notable trends in Japan’s halal sector. These materials now account for about 60–70% of Japan’s halal-certified exports, according to Remon.

Consumer-ready halal goods represent a smaller portion of the market, although exports of halal-certified Wagyu beef, especially to Malaysia and Indonesia, are on the rise. 

“While exact certification numbers are difficult to obtain, Japanese export-oriented companies are increasingly seeking halal certification, especially in the food ingredient and cosmetics sectors,” says Shinya Yokoyama, co-founder of Food Diversity Inc., Japan’s leading halal food information provider.

Domestic demand is still nascent

At home, Japan’s halal market primarily serves the country's growing Muslim population and inbound Muslim tourists. According to Kyodo News, Japan’s Muslim population reached around 350,000 at the start of 2024, up from 110,000 in 2010, a more than threefold increase.

In terms of inbound tourism, Malaysia and Indonesia made up a combined 2.8% of Japan’s total inbound arrivals in 2024, with 506,883 and 517,651 visitors, respectively. Meanwhile, travelers from the Middle East represented just 0.5%, or roughly 166,259 visitors.

“Halal products in Japan still primarily serve inbound Muslim tourists and residents, though some spillover into local consumer interest is emerging,” Yokoyama notes. 

“While many Japanese consumers have heard the word 'halal,’ their understanding remains limited. They tend to choose restaurants based more on taste and quality than on whether the food is halal certified. With the growing popularity of Asian cuisine, there is potential for increased consumption by Japanese consumers in the future.”

Halal dining hubs and initiatives

Over the past decade, halal-friendly restaurants have sprung up across Japan, though they remain heavily concentrated in large cities such as Tokyo, Kyoto, and Osaka. 

Tokyo, in particular, has become a hotspot for halal dining, especially the Ueno district, known for its popular halal yakiniku (Japanese-style BBQ) restaurants.

Beyond urban centers, Hitoyoshi City in Kumamoto Prefecture has emerged as a halal destination. There, the hot spring inn Ayunosato has gained popularity among Muslim tourists for serving what Yokoyama describes as "the freshest halal beef in Japan,” while Ryokan Ayu no Sato, a riverside inn, has been offering halal-certified meals since 2019.

Another success story is Malaysian food services provider Brahim, which partnered with Japanese retailer Muji in 2020 to sell halal-certified ready meals across more than 400 outlets. Brahim has since opened four food outlets in Japan, the most recent launching in April 2025.

The Aichi Prefecture opportunity

With Aichi Prefecture and its capital, Nagoya set to co-host the 2026 Asian Games from September 19 to October 4, preparations are underway to welcome a surge of Muslim visitors. 

However, the region still has only about 30 halal restaurants—woefully short of what’s needed to accommodate an estimated 15,000 athletes and staff, plus 1.5 million visitors. In comparison, Tokyo has 298 halal restaurants, according to Halal Gourmet Japan.

“Urgent improvements are needed in places like Aichi ahead of large-scale international events,” says Yokoyama.

Certification remains a stumbling block

Despite the sector’s potential, growth continues to be hampered by the complexity of Japan’s halal certification system and lingering doubts about its credibility.

Many restaurant operators are unfamiliar with key halal practices, such as preventing cross-contamination and sourcing certified ingredients. “Although halal certification has become more accessible, businesses still face challenges such as a lack of understanding, choosing the right certification body, and concerns around credibility—especially regarding inconsistent local initiatives,” Yokoyama explains.

The total number of halal certifiers in Japan remains unclear, and many do not publicly disclose how many certificates they issue. 

A few of the six bodies recognized by international authorities—such as Malaysia’s JAKIM—do publish such data, often covering food ingredients or cosmetic raw material manufacturers targeting export markets. “The rise in overseas Japanese restaurants (in Muslim-majority countries) may be contributing to this trend,” says Yokoyama.

Remon also highlights the logistical barriers to certification, especially for domestic restaurants. “The supply of halal-certified products in Japan remains limited, and obtaining the necessary supporting documentation poses a major challenge for restaurants.”

Compounding the issue is the role that some local mosques have taken in offering halal certification, often through informal procedures. “For example, some mosques can provide a halal certificate in just one day at a very low cost, whereas certification through JHA involves a lengthy process and detailed documentation,” Remon notes.

“Unfortunately, this is a common issue in many countries. We’ve come to realize that the approach to certifying restaurants needs to be fundamentally different from that of product certification, and we’re actively working on a new framework.”

A call for data and a vision for the future

According to Remon, JHA has been working to raise awareness of the halal industry’s potential within the government, and there are signs that this effort is gaining traction. However, there remains a critical need for solid data to accurately assess the size, scope, and opportunity within the halal sector.

“While we observe these trends through our daily activities, having accurate statistics is essential for broader understanding and informed policymaking,” she says. 

“We believe Japan’s halal sector has significant room to grow, particularly by leveraging the country’s strengths in food technology and high-quality agricultural products. But for the industry to truly thrive, it must be developed as part of a comprehensive ecosystem—not just through halal certifiers, but also with the involvement of researchers, marketers, government agencies, and other key stakeholders.”

JHA’s long-term ambition goes beyond market development. It ultimately envisions a self-sustaining platform where halal certification serves as a generator of waqf—an Islamic endowment that supports Japan’s Muslim communities. These funds could help finance Islamic schools, scholarships for future Japanese Imams and scholars, halal slaughterhouses, supermarkets, and other essential services.

“The goal is to build a self-sustaining ecosystem where Muslims in Japan can live with peace of mind and dignity,” Remon says. “The number of Japanese Muslims is steadily growing, including second- and third-generation Muslims born in the country, alongside a rising population of Muslim residents.

“The question we face is: how long can we wait for someone else to provide a halal-friendly environment? The responsibility lies with us. This movement has already begun—and our role is to accelerate its progress. With collective effort, we believe this initiative can bring tremendous benefits not only to Muslims in Japan, but to Japanese society as a whole.”