Ramadan adds up to £1.3 billion to UK's economy

Ramadan-related activities contribute between 800 million to 1.3 billion pounds to the UK economy, a new study has revealed. 

Activities include retail spending, charitable donations, supermarket sales, Eid shopping, volunteering, and more, enhancing economic growth and social cohesion, a report by UK-based think tank Equi suggested.

Approximately 2.6 million British Muslim adults observe fasts across the country, prompting a change in consumer spending, retail trends and charitable giving. 

Supermarkets and independent food retailers invest an estimated 159 million to 274 million pounds in the Ramadan value chain, while supermarkets alone generally approximately 228 million to 342 million pounds in Ramadan sales, increasing two-to-three-fold from a decade ago. 

“Ramadan plays a catalyst role in encouraging supermarkets to stock a wider variety of halal-certified products, from fresh meat and poultry to ready-made meals and snacks throughout the year. All of these changes require supply chains to adapt accordingly, necessitating significant investment by supermarkets in sourcing, logistics, and infrastructure,” the report read. 

British Muslims spend an estimated 200 million to 300 million pounds on clothes, gifts and travel during Ramadan and Eid, while mosques across Britain serve free iftar meals worth an estimated 15 million pounds during the holy month.  

On balance, British Muslims generate £70 billion a year for the UK economy, 30% of which are business contributions.

However, the study suggests that the Ramadan economy remains an underexplored area in policy discussion. 

“The rise of the Ramadan economy in the UK is an underappreciated phenomenon. With these increases in spending and changes in focus already prevalent, they present an unfulfilled opportunity to channel these shifts into strengthened local supply chains, boost small businesses, and encourage more sustainable consumer habits," the report added.