China Halal Food & Beverage Products Market Size, Share & Industry Analysis, By Type (Milk and Milk Products, Fruit and Vegetables, Grain Products, Beverages, Meat and Meat Products, Confectionery, Food Additives, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Sales, Bulk Suppliers, and Others), By End-User (Foodservice Sectors and Households), and Regional Forecast, 2025-2034

The China halal food & beverage products market size was valued at USD 77.71 billion in 2024. The market is projected to grow from USD 85.95 billion in 2025 to USD 217.10 billion by 2034, exhibiting a growth at a CAGR of 10.84% during the forecast period.

Halal foods & beverages are a kind of food and beverage products that have received Halal certificates from various associations, including the China Islamic Association, Linxia Halal Food Certification Centre, and ARA Halal Certification Services Center Inc., and permitted or allowed for consumption under Islamic law. The emerging Muslim population in the country is significantly contributing to the market growth.

Additionally, rising companies' focus on achieving food quality certifications, coupled with the growing popularity of Halal-certified products, will drive market growth in the upcoming years. Increasing new product launches and international companies' focus on entering the Chinese market are further contributing to the halal food industry’s growth. Yili Group, China Mengniu Dairy Company Limited, Shandong Grasshome Halal Food Co., Ltd., Hebei Kangyuan Halal Food Co., Ltd., and Qingdao Alliance Food Corporation are some of the prominent players in the market.

MARKET DYNAMICS

MARKET DRIVERS

Growing Muslim Population and Increasing Product Availability to Fuel Market Growth 

The growing Muslim population nationwide, coupled with increasing awareness of halal standards among individuals, drives the market. Uygur and Hui are the top Muslim ethnic groups across China. Moreover, Xinjiang, Gansu, Ningxia, Beijing, and Qinghai are major provinces where the majority of the Muslim population resides. For instance, according to the China Population Census 2020 by the Government of China, in 2020, there were over 25.95 million Muslims in the top 10 Muslim-majority ethnic groups in China. Moreover, according to the government, Uygur and Hui were major ethnic groups in 2020, with 11.17 million Uygur and 11.37 million Hui in China.  

Increasing Halal Product Popularity Paired with Halal Certifications and Rising Cross-Border Trade to Propel Market Growth

The increasing consumption of halal food & beverage products, such as meat, milk, vegetables, yogurt, ready-to-drink beverages, and frozen food, due to the growing Muslim population and rising disposable income, coupled with rising popularity among non-muslim consumers owing to the perception of halal food being a healthier and safer option. The growing halal tourism in China is due to rising disposable income among Muslim travelers and the availability of halal-certified travel options. Moreover, the growing number of halal-certified hotels, cafes, and restaurants catering to Muslims countrywide boosts the demand for halal food & beverage products. The increasing halal certifications among food and beverage ingredient companies drive the industry growth. Several ingredients’ companies are focusing on obtaining halal certifications to cater to the increasing demand from halal-product manufacturers. For instance, in August 2023, Qingdao GBW Group Co., Ltd., a China-based probiotics & enzymes company, obtained Halal certification for its probiotics food factory from the HALAL Food Control Center (HFC). HALAL certification will assist the company in serving the Muslim consumer base across the country.

MARKET RESTRAINTS

Increasing Counterfeit Products to Limit the Market Growth

The increasing availability of counterfeit products with fake halal certifications by local and international players across countries limits the market growth. China lacks a centralized, widely recognized halal certification system. Different provinces and regions follow varied halal certification standards, leading to inconsistencies in product authentication. The absence of a single governing body creates confusion among consumers about the authenticity of certifications, thus limiting the China halal food & beverage products market growth. Furthermore, fake halal-certified foods raise concerns about food authenticity and food safety. If a product is not genuinely halal, it may contain haram (forbidden) ingredients, such as pork-based gelatin & alcohol-based additives, violating Islamic dietary laws. Fraudulent halal products may also contain injurious preservatives, harmful chemicals, and substandard meat sources, posing major health risks.

MARKET OPPORTUNITIES

Boosting Production Capacity to Meet Increasing Product Demand

Focusing on boosting production capacity by opening new manufacturing facilities across China to cater to increasing product demand will offer significant growth opportunities. Setting up a new production facility will eliminate tariffs and shipping costs on imported food & beverage products. Additionally, products with labels such as Made in China, Locally Made, and Locally Sourced can lead to strong brand perception. Chinese consumers usually associate local production with high-quality standards, better freshness, and authentic ingredients. Moreover, local manufacturing helps avoid high import taxes. It reduces logistics costs, leading to lower manufacturing expenses, thus increasing profit margins and allowing competitive pricing to be offered against local market players.

MARKET CHALLENGES

Fluctuating Raw Material Prices to Hamper the Industry Growth

Fluctuating prices of raw materials limit the market growth. The industry heavily relies on various raw materials such as wheat, rice, corn, barley, fruits, coffee, cocoa, tea, nuts, vegetables, dairy, meat sources, and sugar. Moreover, fluctuating prices of these raw materials owing to inflation, import-export tariffs & restrictions, lower yield productions, geopolitical tensions, changing climatic conditions, and rising labor & fertilizers costs significantly impact product costs. These fluctuating prices can increase production costs, thus limiting market growth. Furthermore, fluctuating raw material prices affect manufacturers’ product prices, thus impacting their profit margins and competitive pricing.

China Halal Food & Beverage Products Market Trends

Accelerating Demand for Plant-Based Products to Drive Market Growth

Increasing health consciousness among individuals and rising health concerns regarding the presence of harmful ingredients boost the demand for plant-based food and beverages. Moreover, the growing adoption of vegan & flexitarian diets among individuals, coupled with growing health benefits, such as reduced obesity, heart disease, & type 2 diabetes, and supporting gut health & digestion, propels the market growth. Moreover, plant-based beverages made using alternatives such as soy, almond, oat, and coconut milk are popular among vegan and lactose-intolerant consumers owing to various benefits, including low-calorie, cholesterol-free, lactose-free, essential nutrients, and antioxidants.

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Impact of COVID-19

During the initial stages of the COVID-19 pandemic, consumers in the region significantly engaged in panic buying and stockpiling food & beverages due to uncertainties. Key manufacturers in China faced production delays owing to labor shortages, factory shutdowns, and transport restrictions countrywide. Restrictions on international shipping led to shortages and price fluctuations. Furthermore, fluctuating raw material prices, rising operational costs, and increasing marketing & advertisement expenses led to high product prices, affecting the profit margins of market players. The decline in profit was due to various reasons, including additional marketing & sales expenses to reduce inventories in its distribution channels, and to accelerate the resumption of normal sales. For instance, China Mengniu Dairy Company Ltd., a China-based dairy company, recorded a profit decline of 14.1% in 2020 compared to the previous year. According to the company, a reduction in production and increased operation overheads are primarily responsible for the decline in profit.

SEGMENTATION ANALYSIS

By Type

Nutritional Value and Traditional Diet Practices are Responsible for Meat & Meat Products Segment’s Dominance in the Industry

Based on type, the market is divided into milk & milk products, fruit & vegetables, grain products, beverages, meat & meat products, confectionery, food additives, and others.

Out of all the categories, the meat & meat products segment dominated the market in 2024 and is predicted to lead the market throughout the forecast period. Meat-based dishes are a staple in Muslim culture, making them a regular part of their diet. Moreover, the increasing consumption of meat & meat products owing to their various nutritional values, such as protein, vitamin B12, iron, & zinc, drives the segment’s growth. Muslims only prefer halal meat & meat products due to religious obligations and rising food safety concerns among meat & meat products, such as adulteration & contamination, thus boosting the demand for halal meat and meat products.

Key players in the dairy sector are actively involved in achieving Halal certificates. Over the past couple of years, leading milk-producing companies such as China Mengniu Dairy Co Ltd, Junlebao, Sanyuan, and YiLi Group have achieved halal certification for their dairy products to cater to their consumer base. Therefore, the milk and milk products segment is anticipated to grow at the fastest CAGR during the forecast period.

By Distribution Channel

Wide Accessibility and Product Offerings Boosted the Supermarkets/Hypermarkets Segment Growth

On the basis of distribution channel, the market is distributed into supermarkets/hypermarkets, convenience stores, online sales, bulk suppliers, and others.

Among the categories, the supermarkets/hypermarkets segment dominated the market in 2024 and is expected to lead the market in the coming years. The wide availability of halal products from major international and local players with halal certifications from recognized bodies propels the segment growth. Supermarkets & hypermarkets are usually recognized as one-stop shopping places offering an extensive selection of halal-certified food & beverages, ensuring convenience for Muslim consumers. Moreover, supermarkets & hypermarkets also run special promotions and discounts, such as buy-one-get-one (BOGO) on halal products during Islamic holidays, such as Ramadan, attracting Muslim consumers.

The online sales segment is expected to grow at the fastest CAGR during the forecast period and is predicted to soar at a remarkable pace in the coming term. Online retail channel offers the ease of purchasing food and beverages anytime and anywhere, eliminating the need to visit physical stores, significantly appealing to working and busy lifestyle individuals. Moreover, the integration of digital payments, such as Alipay & WeChat Pay, coupled with the rising option for one-day or next-day delivery, propels the segment’s growth.

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By End-User

Rising Demand for Convenience & Packed Halal Foods to Drive the Household Segment’s Growth 

On the basis of end-user, the market is bifurcated into foodservice sectors and households. Among the categories, the households segment dominated the market in 2024 and is expected to lead the market in the coming years. Prepared snacks and convenience food products are widely available across several retail stores. As consumers prefer packed snack products at home, it is likely to drive household consumption in the country. Moreover, the increasing demand for fruits, vegetables, milk, and meat among households for daily consumption propels the segment’s growth.

The foodservice sector is expected to grow significantly throughout the forecast period. The increasing number of international and domestic Muslim tourists, coupled with the growing popularity of halal tourism, boosts demand for halal products, driving the segment’s growth. Moreover, the rising number of halal-certified hotels, restaurants, and cafes nationwide, majorly in Xinjiang, Ningxia, & Gansu regions, propels demand from the food service sector.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

New Product Launches to Stay Competitive in the Industry, Which Leads to Strengthening the Market Position

The China halal food & beverage products market share exhibits a highly fragmented structure with the presence of international and regional players. The leading industry players in the market, such as Yili Group, China Mengniu Dairy Company Limited, Shandong Grasshome Halal Food Co., Ltd., Hebei Kangyuan Halal Food Co., Ltd., and Qingdao Alliance Food Corporation, are actively adopting various penetration activities such as new product launches, and partnerships to excel their industry presence. These major players accounted for nearly 22.74% of the market share in the respective sectors. Key players operating in the China halal food & beverage products industry consistently focus on launching newer halal-certified milk, meat, and vegetable products to increase their product reach across China and build their market positions.   

Major Players in the China Halal Food & Beverage Products Market

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LIST OF KEY CHINA HALAL FOOD & BEVERAGE PRODUCT COMPANIES PROFILED:

• Yili Group (China)


• China Mengniu Dairy Company Limited (China)


• Shandong Grasshome Halal Food Co., Ltd. (China)


• Hebei Kangyuan Halal Food Co., Ltd. (China)


• Qingdao Alliance Food Corporation (China)


• GUANGDONG SHANGYI FOOD CO., LTD. (China)


• HAOYUE Group (China)


• ELISHA MINERAL WATER CO., LTD. (China)


• Hebei province Xinle City Moslem Meat Co., Ltd. (China)


• IVY(HK)INDUSTRY CO., LIMITED & Zhaoan Huazhijie Food Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS

• February 2025: ELISHA MINERAL WATER CO., Ltd., a Chinese beverages manufacturing company, launched a refreshing apple-flavored sparkling drink to the market. The newly launched product is an FDA, Halal, and ISO-certified product.


• October 2024: Protoga Biotech, a China-based company, announced the launch of its new Commercial Microalgae Plant Milk in China. According to the company, the products manufactured are Halal and Kosher-certified.


• September 2022: GUANGDONG SHANGYI FOOD CO., LTD., a China-based food company, launched its new halal-certified 65g seaweed sesame rice biscuit cracker of golden-colored biscuits in China.


• March 2021: Saudee Group, a Malaysia-based frozen food company, collaborated with Top Standard Corporation to develop a new line of halal frozen meats and ready-to-eat meals for distribution in China.


• September 2020: Zih Mao Enterprise Co., Ltd., a China-based food & beverage starch company, received Halal certification for its over 30 products of starch food additives from the Taiwan Halal Integrity Development Association. According to the company, the certification proves that raw material in the food & production process is pollution-free and guarantees packaging cleanliness.

INVESTMENT ANALYSIS AND OPPORTUNITIES

As halal food products and beverages are becoming popular in the country, government organizations and key manufacturers are investing in expanding their production activities. Government supportive policies to expand the export of halal products, including food & beverages, to China, owing to increasing product demand nationwide. Several government agencies are focusing on collaboration and partnership to boost the export of halal products in China. For instance, in September 2022, Halal Development Corporation Berhad (HDC), a federal agency & Malaysia External Trade Development Corporation (Matrade), a government agency, signed a Memorandum of Understanding (MoU) with HYT Cross Border Sdn Bhd, a Malaysia-based cross-border e-commerce platform to facilitate the export of Malaysian halal products to China. According to the company, the collaboration will provide access to China’s market via the JD.com marketplace, a China-based e-commerce platform. Companies' collaboration and government-supporting policies are significantly influencing the growing demand for halal products across the country.

REPORT COVERAGE

The China halal food & beverage products market report includes quantitative and qualitative insights into the market using different research methodologies. This report offers the market growth forecast and a detailed regional analysis, market analysis, market trends, market dynamics, regional market forecast, and the market rate for all possible market segments. This market analysis report provides various key insights on the market, an overview of halal markets, the competitive landscape, the forecast period, recent industry developments, such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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Report Scope & Segmentation